European stocks fell on Tuesday as worries about economic growth and losses across energy stocks overshadowed some positive earnings updates.

The Stoxx Europe 600 Index closed 0.2% lower in London, with energy stocks the biggest losers as oil declined, while more cyclical sectors like miners, autos and banks also fell. Technology and financial services stocks outperformed. German industrial output fell for a fourth month in September, highlighting the challenge that Europe’s largest economy faces in averting a recession.

However, some updates late in the earnings season provided some support. UBS Group AG shares rose thanks to stronger-than-expected client inflows in its wealth-management business, while Associated British Foods Plc was also among the biggest gainers as the Primark-owner predicted a rise in profit.

French utility Engie SA gained after raising its financial targets amid a boost from higher renewable-power generation.

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European equities have rallied in November, rebounding after recently reaching their lowest level in nearly 10 months amid worries over rising bond yields, a disappointing earnings season and the Israel-Hamas conflict.

“The main problem for investors is a lack of clarity over 2024 given continued market uncertainty around the macroeconomic environment,” Helen Jewell, CIO, Fundamental Equities EMEA at BlackRock, said in written comments. “Once that clarity arrives, we could see support for stocks because valuations are so low at the moment. They are historically cheap in Europe.”

Last week’s data showing job growth in the US moderated in October more than expected has prompted speculation that the Federal Reserve could be done with its tightening campaign. Equity sectors which are more sensitive to interest rates, such as real estate and technology, have been among the biggest gainers so far this month.

However, not all investors are convinced. Michael Field, European market strategist at Morningstar, is questioning how sustainable the recent rally really is.

“There’s not a huge upside to buying the market at this point, so you have to lure investors back in at a time when interest rates are very high, inflation is still running above what it should be, companies are saying that things aren’t great out there,” Field said by phone. “And, yet, we’re trying to get investors to still be positive about the market, which is the difficult thing, which makes me think that it’s unlikely that we’re going to continue to see a rally.”

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• US Stock Futures Fall; Ventyx Bio, Alto Ingredients Inc Fall
• Scottish Mortgage Sees Valuations Drop: The London Rush

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--With assistance from Michael Msika.

(Corrects title of Helen Jewell in story published on Nov. 7)