European equities traded modestly higher on Tuesday, supported by a positive finish on Wall Street overnight and signs that the recent selloff in precious metals was short-lived.
By 08:05 GMT, Germany’s DAX was up around 0.8%, France’s CAC 40 had added 0.4% and the UK’s FTSE 100 was edging 0.1% higher.
Calmer metals markets lift sentiment
After several volatile sessions marked by sharp falls in gold and silver prices late last week and over the weekend, global markets appear to have steadied. Precious metals rebounded on Monday, helping restore confidence and pushing the Dow Jones Industrial Average more than 500 points higher, a gain of roughly 1%, on Wall Street.
Broader sentiment was also buoyed after US President Donald Trump announced late Monday that Washington had reached a trade agreement with India, cutting tariffs on Indian goods to 18% from as high as 50%. The deal followed months of negotiations and was widely interpreted as a move toward easing previously strained trade relations.
Publicis in focus
In Europe, attention has returned to the earnings season, with a heavy slate of results from major companies expected this week.
Publicis Groupe (EU:PUB) was among the stocks in focus after a series of strong client wins helped lift fourth-quarter underlying revenue ahead of expectations at the French advertising group. For 2025, Publicis generated €2.03 billion in free cash flow before working capital movements, up 10.6% year on year, and proposed a dividend of €3.75 per share, an increase of 4.2%, to be paid entirely in cash.
French asset manager Amundi (EU:AMUN) also reported a solid set of numbers, posting a 6% rise in adjusted pretax income for 2025 to €1.86 billion. The performance was driven by record net inflows of €88 billion as the group launched a new strategic plan running through 2028.
Elsewhere, Akzo Nobel (EU:AKZA) said fourth-quarter margins improved strongly from a year earlier, as the Dutch paints maker continues to navigate weak demand while pursuing a potential merger with US rival Axalta Coating Systems.
Investors were also digesting a busy earnings calendar in the United States, including results from PayPal (NASDAQ:PYPL), Pfizer (NYSE:PFE) and Marathon Petroleum (NYSE:MPC), ahead of numbers from Advanced Micro Devices (NASDAQ:AMD) due after the close. Sentiment toward AI-related stocks remains fragile following a poorly received update from Microsoft (NASDAQ:MSFT) last week.
French inflation surprises on the downside
Economic data released earlier showed inflation pressures remain muted in France, the euro zone’s second-largest economy. Consumer prices fell 0.3% month on month in January, while the annual rate slowed to just 0.3%, below expectations of 0.6%.
The European Central Bank meets later this week and is widely expected to keep interest rates unchanged at 2% for a fifth consecutive meeting. ECB President Christine Lagarde may face questions on the impact of a stronger euro on inflation, after the single currency briefly rose above $1.20 last week, its highest level since 2021. Although the euro has since eased, it remains more than 2% higher over the past two weeks.
Oil prices ease again
Oil prices moved lower for a second session on Tuesday, as easing tensions between the US and Iran reduced the geopolitical risk premium in crude markets. Brent futures slipped 0.4% to $65.96 a barrel, while US West Texas Intermediate crude fell 0.4% to $61.90.
Both benchmarks had dropped more than 4% in the previous session after President Trump said Iran was “seriously talking” with Washington, signalling a potential de-escalation with the OPEC member. Reuters reported on Monday that Iran and the US are expected to resume nuclear talks on Friday in Turkey.
Additional pressure on prices came from a firmer US dollar, with the dollar index hovering near a one-week high, making dollar-denominated crude more expensive for overseas buyers.
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