By Amir Orusov
(Reuters) -European shares eased on Tuesday with heavyweight energy stocks leading losses due to a drop in oil, while investors weighed the potential impact of a U.S. government shutdown that could delay the release of the closely-watched monthly jobs data.
The pan-European STOXX 600 slipped 0.2% to 554.5 points by 0856 GMT, though set for its third successive monthly and quarterly gain.
It's set to gain nearly 1% for September, building on its 0.7% gain logged in August.
Oil and gas stocks
dipped 1% as investors anticipate an increase in OPEC+ supply later this week. France's TotalEnergies and UK's BP fell more than 1% each.
Other sectoral laggards included chemicals, down 0.8% and automobiles, off 0.5%.
On Monday, U.S. Vice President JD Vance said that a government shutdown was likely as budget talks with Democrats stalled. It could delay the release of the crucial jobs data, a key indicator of economic health, due later this week.
Daniela Sabin Hathorn, senior market analyst at Capital.com, attributed the European markets' slip on Tuesday to a "spillover" sentiment in the global market.
"Everything seems to be so focused on data and the Federal Reserve easing, and that could just put a little bit of a spanner in the works," said Hathorn.
Meanwhile, there are growing expectations that the Federal Reserve could cut interest rates in its October meeting. Its September cut, the year's first, had pushed European equities up by 0.7%.
Meanwhile, the UK economy grew 0.3% in the second quarter, French preliminary inflation stood at 1.1% in September, and German inflation in four key states rose in line with forecasts.
A broader reading for Germany is due later in the day, and the eurozone inflation data is due on Wednesday.
Among individual stocks, ASOS dropped 9.2% after the British fashion retailer warned that annual revenue would fall short of market expectations due to weak consumer demand.
Hornbach fell 4.6% after the German DIY stores operator posted second-quarter adjusted earnings below expectations.
(Reporting by Shashwat Chauhan in Bengaluru and Amir Orusov in Gdansk; Editing by Harikrishnan Nair)
