By Niket Nishant and Avinash P
Jan 13 (Reuters) – European stocks slipped on Tuesday, led by declines in construction stocks, while investors also assessed a series of mixed corporate updates and a U.S. inflation report.
The STOXX 600 closed 0.1% lower at 610.44 points, retreating from a record high it hit earlier in the session.
Construction stocks led sectoral declines, with Rockwool <ROCKb.CO> falling 7.7% after a report said Russia ordered temporary administration over two Russian units of the Danish building materials firm.
Adding to the gloom, Sika reported a 4.8% drop in full-year sales, sending shares of the Swiss construction chemicals maker down 10%.
“The key will be what companies tell us about earnings and this earnings season guidance is going to be more important than the actual numbers themselves,” said Steve Sosnick, chief market analyst at Interactive Brokers.
Meanwhile, Germany’s DAX ended slightly higher at 25,420.66 points, making Tuesday its 11th consecutive day of gains, its longest winning streak since 2014.
Buoying the DAX was a 2% gain in Airbus after the world’s largest planemaker reported deliveries had risen 4% last year.
Despite Tuesday’s pullback, the STOXX 600 has had a strong start to 2026 and has outperformed the benchmark U.S. S&P 500 this month. Much of the gains have been driven by defence stocks against the backdrop of simmering geopolitical tensions.
“Defence is well positioned, and value stocks will outperform growth stocks over the medium term,” said Shaan Raithatha, senior economist at Vanguard’s Investment Strategy Group.
Among others, Danish offshore wind developer Orsted jumped 5.4% to a one-month high after a federal judge in the U.S. allowed it to resume work on a Rhode Island project, which President Donald Trump’s administration had halted along with four other projects last month.
UBS <UBSG.S> CEO Sergio Ermotti, who oversaw the Swiss bank’s emergency takeover of Credit Suisse, is set to step down by the middle of 2027 although the timeline was not finalised, two sources with knowledge of the matter told Reuters. Shares traded flat for most of the session.
Premier Inn owner Whitbread reported higher third-quarter sales, driven by strong demand and firm pricing at its hotels in Britain and Germany. Shares climbed more 7% to a one-month high.
On the data front, U.S.consumer prices showed signs of steadying in December, firming expectations the Federal Reserve will hold benchmark interest rates when it meets later this month.
(Reporting by Niket Nishant, Avinash P and Johann M Cherian in Bengaluru; Editing by Nivedita Bhattacharjee, Vijay Kishore and Chris Reese)
