The pan-European STOXX 600 index dropped 0.7%, extending a pullback after hitting a series of new record highs in recent sessions

European stocks stalled on Tuesday as investors locked in profits following a blistering rally over the past week, while caution prevailed ahead of key international economic data.

The pan-European STOXX 600 index dropped 0.7%, extending a pullback after hitting a series of new record highs in recent sessions.

Regional benchmarks followed suit, reflecting a broad-based cooling off. Germany’s DAX dipped 1.3%, while France’s CAC 40 fell 0.5%, and Italy’s FTSE MIB dropped 1%.

Defence stocks such as Airbus were up 2.3%.

Meanwhile, Samsung’s forecast sent tech stocks falling across the world. In Europe, French chip materials supplier Soitec dropped 12%. While chipmaker STMicroelectronics lost ⁠5.1%.

Despite the Tuesday session’s minor profit-taking, the broader sentiment across European trading floors remains distinctly upbeat. A supportive mix of macroeconomic factors has recently fuelled a strong run for risk assets.

World crude prices have retreated toward pre-war levels, taking significant heat off corporate input costs and consumer wallets. Recent Eurozone CPI data came in softer than expected, allowing the European Central Bank (ECB) to adopt a more neutral, less aggressive tone.

The supportive indicators have effectively broadened market participation, driving benchmark indices and other riskier asset classes to historic highs over the past week.

London’s FTSE 100 edged up 0.1%. U.K. investors kept a watchful eye on domestic policy ahead of the Bank of England’s financial stability report, looking for guidance on the health of the British banking sector and property market.

Markets are expected to remain in a relative holding pattern ahead of data such as U.S. macro cues later this week, with the local central bank minutes set to clarify the path forward for borrowing costs in the country.