LONDON — European stocks ended Tuesday trading mixed, as investors continued to weigh geopolitical developments in Iran, and the launching of a criminal investigation into the U.S. Federal Reserve Chair Jerome Powell.
The pan-European Stoxx 600 closed the session almost 0.2% lower, with major regional bourses in mixed territory.
Looking at individual stocks, shares of Danish offshore wind developer Orsted leapt 5.4% after a U.S. judge ruled it can continue work on a $5 billion project that was suspended by the Trump administration in December.
Elsewhere, Swiss lender UBS was 0.1% higher at the end of dealmaking after the Financial Times reported its CEO Sergio Ermotti will step down in April 2027. A spokesperson for the bank declined to comment.
Over the weekend, it emerged that Fed chief Jerome Powell is being investigated by authorities relating to the $2.5 billion renovation of the central bank's headquarters and his congressional testimony about the remodelling.
Powell said Sunday that the investigation was another attempt by President Donald Trump to influence the central bank's monetary policy and that he would not bow to the pressure. His term as chair is due to end in May.
The president renewed his attacks on the Fed chair Tuesday, saying Powell was either "incompetent" or "crooked."
Market watchers are also keeping an eye on the developments in Iran this week after widespread protests have been met with a violent crackdown by the Iranian authorities.
Trump is reportedly weighing options to take action against Iran and on Monday said that any country doing business with Iran will face a 25% tariff "on any and all business being done with the United States of America."
In the U.S., the S&P 500 fell in morning trade as shares in JPMorgan dropped, with the Dow Jones Industrial Average also trading lower, while the Nasdaq was last seen just above the flatline.
Asia-Pacific markets traded higher overnight.
The consumer price index report is expected to give a fuller picture of prices after disruptions caused by the prolonged U.S. government shutdown last fall. Economists expect the report to show prices rose 2.7% in the twelve months ending in December, according to Dow Jones consensus estimates.
— CNBC's Pia Singh contributed to this market report.