European Shares Pull Back Amid Corporate Earnings Scrutiny

European shares dipped on Tuesday, coming off a record-high close, as investors evaluated signaling an easing of Sino-U.S. trade tensions while digesting an array of corporate earnings reports.

The STOXX 600 shed 0.2% to 575.88 points, influenced by investor caution ahead of the expected meeting between U.S. President Donald Trump and China's Xi Jinping. However, Monday's optimism lingered as hopes remained for a U.S.-China trade agreement.

Sector-wise, aerospace and defense, alongside energy stocks, experienced a 0.8% fall, while mining slid 1%. Bucking the trend, the utilities index showed resilience with a 0.6% rise. Market players also await pivotal central bank policy decisions this week, with the Federal Reserve preparing a potential interest rate cut and the ECB likely maintaining current rates. Prominent earnings updates saw BNP Paribas drop 2.9% after missing forecasts, whereas Capgemini surged nearly 7% following raised growth expectations.