After the storm, the calm.

Europe's share markets took a breather on Tuesday (September 17) as they recovered from Monday's oil price shock.

Defensive sectors - healthcare, utilities and others - posted strong gains.

But were offset by an easing back in oil and gas shares.

Overall, bourses trading flat or slightly negative - though that was better than Asia where China and Hong Kong closed around a percent down.

As for oil: from a 20% intraday leap on Monday (September 16), crude prices too were giving up gains.

Despite the damage done to Saudi Arabian output by Saturday's attack on its crude facilities.

Robert Halver of Baader Bank.

(SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING (on IRAN):

"There's a belief that those losses can be compensated through strategic reserves in Saudi Arabia and the US. Also, Trump can now argue that if the Europeans have a problem, why not buy American fracking oil?"

Sure enough, output by U.S. shale producers is expected to hit a record 8.8 million barrels per day high next month, according to new data.

Elsewhere, some retail stocks were going the other way.

French Connection fell 12% despite reporting a smaller than expected first half loss.

And German e-merchant Zalando fell 10% after a share placement by top investor Kinnevik.

Even as investors shifted their focus to another possible downward move: by the U.S. Fed.

Its policy meeting this week likely to produce a cut in interest rates for the second time this year.