European stocks closed slightly lower on Tuesday, with the STOXX 50 slipping 0.1% and the broader STOXX 600 finishing near the flat line, as traders refrained from making large moves ahead of the Federal Reserve’s monetary policy decision tomorrow. The US central bank is widely expected to deliver a 25 basis point rate cut, though the 2026 outlook remains uncertain. Shares in Ray-Ban owner EssilorLuxottica declined 5.7% after Warby Parker announced plans to launch AI-powered glasses developed in collaboration with Google, heightening competition in the smartglasses market. Thyssenkrupp dropped 7% after forecasting a potential €800 million loss for 2026. Meanwhile, defense stocks surged following Bloomberg reports that German lawmakers are set to approve 29 military procurement contracts totaling a record €52 billion next week. Hensoldt rose 6.5%, Rheinmetall gained 4.1%, Leonardo climbed 2.6%, BAE Systems added 2.3%, and Thales advanced 2.6%.