European stocks advanced on Tuesday, buoyed by resilient retail demand and expectations of a significant interest rate cut by the Federal Reserve. The Stoxx Europe 600 Index rose by 0.4% as retail and travel stocks led the gains, while healthcare and real estate stocks lagged. U.S. retail sales increased for the fourth consecutive month, further influencing market sentiment. Investors are divided on whether the Fed will implement a 25 or 50 basis point cut, with market odds slightly favoring the larger reduction. The German ZEW Economic Sentiment Index revealed a significant drop, adding to the anticipation of central bank decisions. Key corporate movements included Barry Callebaut's 6.5% surge after a rating upgrade and Kingfisher's 6.6% rise following improved profit guidance.