Analysis: European energy stocks fell more than optimism about Federal Reserve rate cuts

European stocks edged lower on Tuesday, halting a five-day winning streak. The falls in energy stocks outweighed recent optimism about the Federal Reserve's interest rate cut. Europe's Stoxx 600 index closed down 0.5% as lower oil prices hit energy stocks and banks fell. Germany's DAX index fell 0.3%, capping its longest streak of gains since 2014. Valuable stocks such as technology stocks were particularly hard hit earlier this month as investors worried about a slowing US economy and global risk assets suffered. In Europe, a recovery in more defensive sectors such as telecoms and healthcare helped the Stoxx 600 rebound and is on track for record highs. Michael Field, European market strategist at Morningstar, said: "Generally speaking, it is healthy for the market to experience a small decline from time to time, which just reminds people that the market is not an escalator, it does not just go up and down."