European stock markets pushed higher on Tuesday, buoyed by optimism carried over from a strong Wall Street session, as investors evaluated fresh earnings reports and awaited key economic data from the eurozone.
By 07:02 GMT, Germany’s DAX was up 0.6%, France’s CAC 40 rose 0.3%, and the UK’s FTSE 100 added 0.5%.
The upbeat momentum followed a solid rebound in U.S. equities on Monday, where the S&P 500 jumped 1.5%, snapping a four-day losing streak. Markets took encouragement from growing speculation that the Federal Reserve could lower interest rates in September following disappointing U.S. jobs data last week.
Eurozone Economic Data in Focus
Optimism extended to European markets, helped by a recently signed trade agreement between the U.S. and the EU, which is expected to reduce corporate uncertainty in the coming months.
Traders are now awaiting the final July readings of the eurozone’s services and composite purchasing managers’ indexes, which are projected to confirm growth in the region’s services sector—key to lifting overall economic performance.
Additionally, inflation remains on the radar. Eurozone producer prices for June are due Tuesday, while French industrial output surprised to the upside, jumping 3.8% month-on-month in June.
BP Exceeds Expectations in Q2
A wave of corporate results also shaped the session.
BP (LSE:BP.) reported stronger-than-forecast second-quarter earnings, as the energy group bounced back amid recent turbulence in global oil and gas prices. The performance marks a step forward for BP in its ongoing effort to regain investor trust after lagging behind competitors in recent years.
Meanwhile, Diageo (LSE:DGE), the global spirits leader, projected that organic sales growth for fiscal 2026 will be broadly in line with fiscal 2025, despite the drag from U.S. tariffs. The company also raised its cost-saving goal to approximately $625 million.
German fashion brand Hugo Boss (TG:BOSS) reported quarterly operating profit that slightly exceeded expectations. Cost control efforts helped offset currency-related pressure from a stronger euro.
French-Swiss recruitment giant Adecco (BIT:1ADEN) posted a 28% drop in adjusted earnings per share for Q2, attributing the decline to squeezed profit margins, even as revenues began to stabilize and volumes improved across regions.
Medical device maker Smith & Nephew (LSE:SN.) delivered an 11.2% increase in trading profit for the first half of the year, bolstered by cost savings and a rebound in U.S. demand that helped counteract weaker performance in China.
Oil Prices Steady After OPEC+ Decision
Crude oil prices held steady early Tuesday after recent declines, following OPEC+’s decision to ramp up output despite an uncertain demand outlook.
As of 03:02 ET, Brent crude slipped 0.2% to $68.66 per barrel, while U.S. West Texas Intermediate dropped 0.2% to $66.16 per barrel.
Both contracts had fallen over 1% in Monday’s session—their fourth straight daily loss—reaching one-week lows.
OPEC and its allies, collectively known as OPEC+, agreed over the weekend to boost production by 547,000 barrels per day in September. The move represents an early and full reversal of a major production cut of around 2.5 million barrels per day, or roughly 2.4% of global oil demand.
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