Analysts: European stocks halt five-day winning streak as energy stocks fall, overshadowing optimism about the Fed's rate cut

European stocks edged lower on Tuesday, snapping a five-day winning streak. A decline in energy stocks overshadowed recent optimism about the Federal Reserve's rate cuts. The European Stoxx 600 index closed down 0.5% as falling oil prices hit energy stocks and bank stocks fell. Germany's DAX index fell 0.3%, ending its longest winning streak since 2014. Global risk assets suffered a setback earlier this month as investors worried about a slowdown in the U.S. economy, and high-valuation stocks such as technology stocks were hit particularly hard. In Europe, more defensive sectors such as telecom and healthcare stocks rebounded, helping the Stoxx 600 index rebound and is expected to hit a record high. "Generally speaking, it's healthy for the market to experience a small drop from time to time, which only reminds people that the market is not an escalator, it will not only go up but not down," said Michael Field, European market strategist at Morningstar. (Jinshi)