European equity markets were uneven on Tuesday as investors digested another wave of corporate earnings, fresh UK labour figures and developments surrounding U.S.-Iran nuclear negotiations.
At 08:05 GMT, Germany’s DAX was down 0.1%. France’s CAC 40 added 0.2%, while London’s FTSE 100 advanced 0.3%.
Mining earnings take centre stage
The reporting season remains front and centre, with major mining groups drawing particular attention.
BHP Group (LSE:BHP) posted better-than-expected first-half underlying profit, helped by robust copper earnings. For the first time, copper overtook iron ore as the company’s largest profit contributor, as prices for the metal climbed amid demand linked to artificial intelligence.
Antofagasta (LSE:ANTO) also delivered record 2025 earnings, supported by firmer copper and by-product prices that lifted both profitability and operating cash flow. Annual revenue climbed 30%, reflecting stronger realised copper pricing and improved by-product contributions.
Results are due this week from Europe’s largest diversified miners — Rio Tinto (LSE:RIO), Glencore (LSE:GLEN) and Anglo American (LSE:AAL) — alongside Antofagasta, at a time when several key metals are trading near recent highs.
Outside the mining space, InterContinental Hotels (LSE:IHG) reported a 16% increase in adjusted earnings for 2025. However, revenue per available room in its Americas division fell 2% in the fourth quarter, marking the sharpest quarterly decline of the year as U.S. government and inbound international travel softened.
Spanish gas grid operator Enagas (BIT:1ENG) returned to profitability in 2025, exceeding its financial objectives. Asset disposals, a higher arbitration award linked to its Peruvian investment and disciplined cost management supported performance.
UK labour market shows signs of cooling
Data released Tuesday indicated further easing in UK labour conditions, potentially strengthening the case for additional monetary easing from the Bank of England.
The unemployment rate rose to 5.2% in the three months to December, up from 5.1% previously and the highest level since early 2021.
Meanwhile, annual growth in regular pay excluding bonuses slowed to 4.2% in the final three months of 2025 compared with a year earlier, down from 4.4% in the period to November.
“The lack of green shoots of recovery in the labor market and further fall in wage growth supports the idea that the Bank of England has at least a couple more interest rate cuts in its locker, with the chances of the next cut happening in March rather than April edging higher,” analysts at Capital Economics said in a note.
Later in the day, Germany’s ZEW economic sentiment survey is expected to show improving confidence in Europe’s largest economy.
Oil slips ahead of U.S.-Iran discussions
Crude prices edged lower as markets evaluated potential supply risks from Iran ahead of indirect talks with the United States in Geneva aimed at addressing their long-standing nuclear dispute.
Brent futures fell 0.7% to $68.15 per barrel, while U.S. West Texas Intermediate rose 0.6% to $63.12 per barrel. Monday’s U.S. public holiday meant there was no official settlement price.
While diplomatic efforts are under way, reports suggest the U.S. military is preparing contingency plans for possible extended operations involving Iran. Tehran has also begun military exercises in the Strait of Hormuz, a key global shipping lane for oil exports from Gulf producers.
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