European shares open higher as defensives eke out gains; Vodafone tumbles

European shares opened higher on Tuesday, with defensive utilities and real estate sectors leading the advance after more Federal Reserve officials dampened hopes of a policy pivot, while Vodafone tumbled after slashing its full-year forecasts.

The continent-wide STOXX 600 index rose 0.1% by 0813 GMT. The utilities index rose 0.9%, leading the sectoral advance, while real estate stocks added 0.4%.

Vodafone shed 4% after cutting its full-year free cash flow forecast and said earnings would come in towards the bottom of its range. European telecoms were down 0.5%.


Fed Vice Chair Lael Brainard said on Monday the U.S. central bank will likely soon slow its rates hikes, but emphasized that "we have additional work to do," taking a similar tone to Fed governor Christopher Waller over the weekend.