European stock markets moved higher on Tuesday, edging closer to record territory as upbeat results from HSBC and Bayer helped offset weakness in consumer-related shares and continued geopolitical uncertainty.
The pan-European STOXX 600 gained 0.4% in early trading, leaving the index within reach of the record highs reached late last week.
Germany’s DAX and France’s CAC 40 both advanced 0.6%, while the FTSE 100 in London rose 0.5% and Italy’s FTSE MIB added 0.7%.
Corporate Results Keep Risk Appetite Firm
Investor confidence was supported by another round of better-than-expected quarterly results, extending the positive momentum seen during Monday’s session.
European equities have continued to show resilience despite broader economic uncertainty, helped by strong corporate balance sheets and lower energy costs.
Oil prices recovered slightly on Tuesday after falling sharply in the previous session following U.S. President Donald Trump’s announcement of diplomatic discussions with Iran.
However, concerns over supply routes remained after reports suggested shipping traffic through the Strait of Hormuz was still heavily restricted. The continued disruption kept traders alert to the risk of bottlenecks along one of the world’s most important energy transit corridors.
HSBC Slips Despite Profit Beat
HSBC (LSE:HSBA) shares fell 0.4% even though the bank reported second-quarter profit above market expectations.
The result was supported by resilient net interest income and continued strength in wealth management. HSBC also unveiled a new share repurchase programme worth up to $1 billion.
Bayer Rallies on Earnings Surprise
Bayer (TG:BAYN) climbed 4.3% after delivering an unexpected 1.9% increase in adjusted EBITDA for the second quarter.
Solid pharmaceutical demand helped offset weaker conditions in the agricultural business, allowing the German group to outperform market forecasts.
Consumer Shares Come Under Pressure
Beiersdorf (TG:BEI) declined 1.1% after the Nivea owner lowered its full-year 2026 sales outlook.
The company pointed to a difficult consumer environment and weaker demand across several important international markets.
Salvatore Ferragamo (BIT:SFER) dropped 8.5% following the publication of its first-half results.
Markets Await AMD and SpaceX Results
Attention is also turning to major earnings releases due after the close on Wall Street from semiconductor company AMD (NASDAQ:AMD) and Elon Musk’s SpaceX (NASDAQ:SPCX).
SpaceX’s first results as a listed company are expected to attract significant global attention following its $85.7 billion initial public offering in June.
The shares have fallen by more than 50% from their post-listing highs amid concerns over heavy spending on artificial intelligence infrastructure and volatile cash consumption.
Its latest financial update is therefore being closely watched as an indicator of global retail investor demand, mega-cap technology valuations and prospects for the wider IPO market.
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