European stocks end mixed as DAX slips 0.64% ahead of Fed, BoE

European stocks closed mixed Tuesday, with Germany's DAX 30 falling 0.64% to 24,977.34, as traders awaited policy decisions from the Federal Reserve and Bank of England this week.

The decline pushed the DAX below the psychologically important 25,000 level, a threshold that has served as a key support in recent trading. France's CAC 40 slipped 0.30%, while Italy's FTSE MIB underperformed with a 1.18% drop, dragged by a 1.03% decline in its banking index. Bucking the regional trend, the UK's FTSE 100 gained 0.23%, supported by its heavier weighting in defensive sectors.

Italy's sharper decline raised concerns about sovereign debt dynamics in the eurozone periphery, with the banking sector bearing the brunt of the selloff. The divergence between the UK and continental European markets highlighted varying exposure to interest-rate-sensitive sectors ahead of the BoE's rate decision on Thursday and the Fed's conclusion of its two-day meeting on Wednesday.

Traders are pricing in a high probability that the Fed holds rates steady at 5.25% to 5.50%, while the BoE faces a more uncertain path as UK inflation remains above the 2% target. The outcome of both meetings will set the tone for European equities heading into the second half of the year, with the DAX's ability to reclaim the 25,000 level serving as a key technical signal for near-term direction.

This article is for informational purposes only and does not constitute investment advice.