European equities are mostly trading higher on Tuesday, with the notable exception of the U.K. market, even as geopolitical tensions escalate in the Middle East. Weak results from HSBC Holdings plc (LSE:HSBA) are weighing on London’s banking sector, contributing to the underperformance of the FTSE 100.
Hostilities between the United States and Iran have intensified in the Gulf region, particularly around the Strait of Hormuz. Iran’s parliament speaker warned that recent U.S. actions are threatening the safety of shipping and energy flows through the critical waterway.
“Shipping and energy transit security have been endangered by the United States and its allies through breaching the ceasefire and imposing a blockade,” said Mohammad Bagher Ghalibaf in a post on X.
He added that a “new equation” is emerging in the strategic strait, stating, “We know well that the continuation of the status quo is unbearable for America, while we have not even started yet.”
Major Indices Performance
The pan-European Stoxx 600 is up about 0.5%. Germany’s DAX is leading gains with a rise of 1.5%, while France’s CAC 40 is up 0.7%. In contrast, the FTSE 100 in the U.K. is down 1.3%.
Germany: Broad Gains Across Industrials
In Frankfurt, Infineon Technologies AG is up 4.3%, while Commerzbank AG, Siemens AG and Siemens Energy AG are advancing between 2.7% and 3.5%.
Rheinmetall AG is gaining around 3% after reporting a 7.7% year-on-year increase in first-quarter earnings to €1.94 billion.
Scout24 SE is up nearly 2% after JPMorgan Chase & Co. maintained its Buy rating. Hugo Boss AG initially jumped close to 5% on strong results but later reversed into a slight loss of around 0.5%.
Other gainers include Continental AG, Daimler Truck Holding AG, Heidelberg Materials AG, Deutsche Bank AG, Deutsche Telekom AG and SAP SE, all rising between 1% and 2%.
Fresenius Medical Care AG is down more than 6% after reporting a sharper-than-expected drop in quarterly profit, while Fresenius SE & Co. KGaA and Deutsche Post AG are also lower.
France: Telecoms and Industrials Lead
In Paris, Teleperformance SE is up 4.3%, with Bouygues SA, Schneider Electric SE, Orange S.A. and Vinci SA gaining between 2% and 2.5%.
Other stocks such as Airbus SE, ArcelorMittal, Thales Group, Bureau Veritas SA, Safran SA, STMicroelectronics N.V., Veolia Environnement SA, Legrand SA, Eurofins Scientific SE and BNP Paribas SA are also posting gains.
On the downside, Sanofi S.A. is down 4.6%, while Danone S.A., EssilorLuxottica, Capgemini SE, Renault S.A. and Stellantis N.V. are also weaker.
U.K.: Banks Drag Market Lower
In London, HSBC Holdings plc is down nearly 6% after reporting a slight decline in first-quarter profit before tax to $9.38 billion, reflecting higher credit losses and impairment charges.
Other banks including Lloyds Banking Group plc, Standard Chartered plc, NatWest Group plc and Barclays plc are also trading lower.
Among other decliners, Entain plc is down more than 5%, while Weir Group plc, Legal & General Group plc, Aviva plc, Haleon plc, InterContinental Hotels Group plc, Unilever plc, Coca-Cola Europacific Partners plc, Standard Life Aberdeen plc, Marks and Spencer Group plc, Reckitt Benckiser Group plc and Fresnillo plc are down between 2% and 4%.
On the positive side, Intertek Group plc is up more than 7%, while BT Group plc has gained 3.7%. BAE Systems plc, Spirax Group plc and Compass Group plc are also higher, along with Airtel Africa plc, Pearson plc, Endeavour Mining plc and The Sage Group plc.
UK Auto Sales Rebound
Data from Society of Motor Manufacturers and Traders showed that new car registrations in the U.K. rose 24% year-on-year in April 2026 to 149,247 units, reflecting a rebound from a weak comparison in April 2025.
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