European markets retained a cautious tone Tuesday, with investors keeping one eye firmly on the lingering conflict in Ukraine while trying to gauge whether the European Central Bank will announce further stimulus measures at its policy meeting later in the week.
The Stoxx Europe 600 closed the session flat on the day, broadly in-line with Paris' CAC. London'sFTSE, clung to a slim gain after U.K. construction PMI reached its highest level for seven months in August. Germany's DAX ended the session 0.3% higher.
Equities oscillated throughout the day. Some investors spoke of a compelling case for staying in stocks, especially in the light of possible new stimulus measures from the ECB. Others, however warned that the markets' expectations may be becoming overly inflated.
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