European equity markets found their footing on Tuesday, with the benchmark index holding its ground even as a heavyweight pharmaceutical firm experienced a record slump.

The Stoxx Europe 600 index dipped 0.1% by the London close, dragged down by a 2.3% decline in the healthcare sector. Shares of the pharmaceutical giant tumbled as much as 11% intraday, marking its steepest single-day drop on record, after the company revealed that its experimental therapy for a rare muscular dystrophy condition, del-desiran, failed to meet primary endpoints in a late-stage trial. This marked the third clinical setback for the company within a single week.

In contrast, basic resources stocks advanced as copper prices reached new highs. Food and beverage shares also delivered outsized gains, while energy names strengthened after Saudi Arabia reported that multiple energy installations had been forced to halt operations following an attack, which in turn propelled crude oil prices upward.

"The market is adopting a wait-and-see approach," said Mark Preskett, senior portfolio manager at Morningstar Wealth. "Clearly, oil stocks are attracting buyers, but overall sentiment remains quite subdued."

Investors have now fully priced in an interest rate hike by the European Central Bank at its Thursday policy meeting. Additional potential catalysts on the horizon include earnings reports from major tech firms on Thursday and the Federal Reserve's policy gathering next week.