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European Markets Struggled To Extend Recent Gains

The European markets were stuck in a sideways trend throughout Tuesday's session. Following eight straight days of gains, the markets struggled to move further to the upside due to a lack of significant news. Economic data was on the light side and the DAX of Germany was closed for a holiday.

Spanish Prime Minister Mariano Rajoy on Monday said the government will seek a joint response with other political parties to the "pro-independence challenge" in Catalonia. Catalans voted in favor of independence in a contested referendum over the weekend.

The pan-European Stoxx Europe 600 index advanced 0.14 percent. The Euro Stoxx 50 index of eurozone blue chip stocks increased 0.07 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.11 percent.

The DAX of Germany was closed, but the CAC 40 of France rose 0.32 percent. The FTSE 100 of the U.K. gained 0.39 percent and the SMI of Switzerland finished higher by 0.45 percent.

In London, Rio Tinto advanced 1.06 percent after it successfully completed the first fully autonomous rail journey at its iron ore operations in the Pilbara region of Western Australia.

Ferguson rallied 3.72 percent. The plumbing supplies group hiked dividend and announced a share buyback plan after reporting a rise in trading profit.

Bakery chain Greggs jumped 1.12 percent after reporting a 5 percent rise in like-for-like sales in the 13 weeks to the end of September.

Royal Dutch Shell rose 1.30 percent on a Bloomberg report that the company and its partners Eneco Holdings NV and Mitsubishi Corp. are seeking to sell a stake in two Dutch offshore wind-farm projects.

Coca Cola HBC lost 1.49 percent after announcing the death of its CEO, Dimitris Lois.

Shire Plc slid 1.46 percent after it sued Allergan for allegedly scheming to block doctors from prescribing its new treatment for dry eye disease.

Eurozone producer prices grew the most in three months in August, data from Eurostat showed Tuesday. Producer prices increased 2.5 percent year-on-year in August, faster than the 2 percent rise seen in July. The annual rate exceeded the expected 2.3 percent and was the fastest since June 2017.

Spain's unemployment increased notably in September, data from the labor ministry showed Tuesday. The number of unemployed increased by 27,858 in September from the previous month. Unemployment totaled 3.41 million in September, the lowest in the last eight years, the ministry said.

The UK construction sector contracted for the first time in more than a year in September as a sustained fall in new work led to the reduction in overall business activity, data from IHS Markit showed Tuesday. The IHS Markit/Chartered Institute of Procurement & Supply construction Purchasing Managers' Index fell to 48.1 in September, while the reading was expected to remain unchanged at 51.1.

by RTT Staff Writer

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