European stock markets closed flat on Tuesday. The STOXX 600 index edged 0.29% higher, while the STOXX 50 raised 0.08%—persistent concerns about the economic outlook continued to weigh on investor sentiment. 

Economic data released on the day painted a mixed picture. German factory orders unexpectedly rose 3.9% in June, significantly surpassing market forecasts of a 0.8% increase. The development sparked optimism for the struggling manufacturing industry. However, Euro Area retail sales fell 0.3% month-over-month in June, disappointing analysts who had expected a milder 0.1% decrease. This decline contrasted with the 0.1% increase observed in May. 

Financial stocks led the losses, with several major banks experiencing declines. BNP Paribas, UniCredit, Intesa Sanpaolo, and Deutsche Boerse saw their shares drop more than 1.3% each. Bayer was another significant decliner, plunging around 6% after reporting a sharp decline in quarterly earnings for the three-month period ending in June. 

On a positive note, some tech and industrial stocks showed strength. ASML added nearly 4.6%, recovering from its recent selloff, while Airbus and SAP each advanced more than 2%. These movements reflect the complex and sometimes contradictory factors influencing European markets as they navigate economic uncertainties. 

(STOXX 50 Index Weekly Chart) 

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Willy

Willly is a skilled and experienced market analyst who has been analyzing financial markets for over 5 years. He currently serves as a Market Analyst at Ultima Markets, a leading financial services company. Willy brings a wealth of expertise in fundamental and technical analysis, having previously worked as Head of Financial Market Analyst at GCMAsia. There, he oversaw the research department and developed educational materials to build clients' financial knowledge. He also collaborated cross-functionally to amplify sales and achieve business goals. Prior to that role, Willy gained valuable experience as a Financial Market Analyst at the same company. He generated daily and weekly reports, conducted market briefings, and provided trading strategies through webinars. Read his latest market analyses on the Ultima Markets News & Analysis.

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