European stock markets started Tuesday’s session on a positive note, with major indices advancing as investors shifted their focus from last week’s tariff updates to a busy calendar of corporate earnings.
A stronger-than-expected profit report from oil giant BP provided a significant boost to market sentiment, helping the regional Stoxx 600 index extend its recent gains.
After a relatively quiet day for European earnings on Monday, the calendar is packed today. In early trading, the pan-European Stoxx 600 index was last seen up 0.4%, with all major national bourses in the green.
A key driver of this positive sentiment was British energy major BP, whose shares were up 2% after the company exceeded second-quarter profit expectations. BP reported an underlying replacement cost profit, which is used as a proxy for net profit, of $2.35 billion for the three months through June.
This figure comfortably beat the $1.81 billion that analysts had expected, according to an LSEG-compiled consensus.
The strong results come as BP continues its efforts to rebuild investor confidence following a protracted period of underperformance relative to its industry peers, and after a period of heightened volatility for global oil and gas prices.
Other major European companies have also reported their latest financials this morning:
- Staffing firm Adecco Group posted better-than-expected second-quarter operating income, which was up 6% to 115 million euros ($132.8 million). The company also stated that it expected its profitability to improve in the second half of the year.
- French satellite operator Eutelsat also beat expectations with revenue growth of 1.6% to 1.24 billion euros. This was driven by growing interest in its satellite internet services from government and corporate customers. However, the company’s operating losses widened to 909 million euros from 310 million euros.
- Germany’s Fresenius Medical Care fell short of market estimates with an adjusted operating income of 476 million euros. The company cited higher-than-expected patient outflows amid “elevated” mortality and missed treatments. Despite this, the firm confirmed its full-year guidance after both its sales and profit rose.
Investors are also awaiting results from fashion house Hugo Boss later in the day.
The lingering shadow of tariffs
Despite the positive start to the day, investors are still keeping a close eye on the latest trade developments.
On Tuesday, their focus will be on the fallout from US President Donald Trump’s announcement of plans to significantly raise tariffs on Indian exports to the United States.
“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,” Trump wrote on the social media platform Truth Social, explaining his rationale.
India has responded by saying it was being “targeted” by both the US and the European Union over its imports of Russian oil. Indian markets slipped at the open on Tuesday as investors monitored these trade developments.
Elsewhere in the Asia-Pacific region, markets traded broadly higher.
US markets provide a positive backdrop
The upbeat mood in Europe on Tuesday is also being supported by a rebound on Wall Street in the previous session.
US stock futures were slightly higher on Monday night, following a positive day for US markets as investors there also followed the latest batch of corporate earnings.
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