Euro zone consumer confidence data due
Nestle, Unilever slip on CFO change
Aroundtown bounces from record lows

May 30 Reuters European stocks were steady on Tuesday, with defensive sectors in the lead as uncertainty remained on whether Congress will clear a U.S. debt ceiling deal and avert a catastrophic default.

The panEuropean STOXX 600 index was flat, though trading activity was expected to pick up momentum as the U.S. and the UK markets reopened after a long weekend.

Sectors that tend to be favoured during times of economic uncertainty such as real estate and utilities led sectoral gains in European morning trade.

A handful of hardright Republican lawmakers said on Monday they would oppose a deal to raise Washington39;s 31.4 trillion debt ceiling, in a sign that the bipartisan agreement could face a rocky path through Congress before the U.S. runs out of money next week.

Details of the deal emerging so far point to spending limits on most items other than military and veterans, meaning the US economy will be facing greater restraints to fiscal policy while the Fed pursues a tight monetary policy, said Mark Haefele, chief investment officer at UBS Global Wealth Management.

We reiterate our view that the US growth is set to slow as the lagged effect of the Fed tightening feeds through the economy.

The benchmark STOXX 600 is set to log losses for May despite hitting a more than oneyear high earlier in the month as concerns about the global economy and the…