Stoxx 600, FTSE, DAX, CAC 40

Mohamad Al-Saraf, affiliate in mounted earnings and FX analysis at Danske Financial institution, mentioned the define deal “seems extra beneficial for the U.S. relative to the euro space.”

“Latest worth motion suggests the USD sell-off could have stalled, with buyers cautious of being caught wrong-footed, as broad USD positioning stays stretched on the quick facet,” Al-Saraf added.

Nonetheless, some analysts see help for the euro wanting forward, partly due to financial coverage. Deutsche Financial institution on Tuesday up to date its name and now sees the European Central Financial institution holding rates of interest on the present 2%, with additional easing “now a threat state of affairs slightly than baseline.”

Whereas the Federal Reserve is anticipated to maintain charges on maintain at its assembly this week, analysts at UBS say that U.S. tariff offers wrapping up with a number of key buying and selling companions and a shaky financial outlook might give the central financial institution extra confidence to chop within the months forward.

— Jenni Reid

European markets are shaking off their EU-U.S. commerce deal blues as a sequence of better-than-expected earnings dominate the image. The Stoxx 600 index is 0.57% increased, with each France’s CAC 40 and Germany’s DAX up by round 1%.

Philips continues to be main good points, up 10%, after the patron well being tech group mentioned it now expects a decrease tariff hit than beforehand forecast.

“General, we now have momentum, we see that we will take that momentum into the second half and we which have the readability on tariffs now additionally to additional mitigate what’s on the market,” CEO Roy Jakobs instructed CNBC’s “Squawk Field Europe” on Tuesday.

EssilorLuxottica is one other prime performer, up 6%, after reporting 7.3% income progress within the second quarter in addition to the primary half, as demand for synthetic intelligence glasses surged. Gross sales of its Ray-Ban Meta glasses greater than tripled within the first six months of the 12 months.

Drugmaker AstraZeneca ticked 1.75% increased after its personal second-quarter earnings beat.

Shares of Stellantis are down 2.1%, regardless of the troubled automotive large reinstating its monetary steering and saying it expects a gradual restoration over the approaching months.

— Jenni Reid, Jonathan Stayton, Karen Gilchrist

Shares of Philips soared practically 14% on the market open, after the Dutch shopper healthcare group raised its full-year margin outlook, saying it now expects a success of 150 to 200 million euros ($230.1 million) from tariffs, down from the 250 to 300 million euros it had beforehand estimated.

Gross sales within the second quarter got here in at 4.3 billion euros, in-line with expectations. 

— Matt Ward-Perkins, Jenni Reid

British financial institution Barclays beat revenue expectations and introduced a £1 billion ($1.33 billion) share buyback as market volatility boosted funding banking revenues.

Pre-tax revenue beat estimates at £2.5 billion ($3.34 billion) within the second quarter, in contrast with a imply LSEG forecast of £2.23 billion. Group revenues met analyst projections of £7.2 billion.

Learn extra right here.

— Jenni Reid

AstraZeneca on Tuesday posted better-than-expected second quarter earnings, pushed by demand for key cancers and biopharmaceutical merchandise, and reiterated its dedication to increasing the enterprise within the U.S.

The Anglo-Swedish pharma agency posted revenues of $14.46 billion over the three-month interval to June 30, forward of the $14.07 billion estimated by analysts in an LSEG ballot.

Quarterly adjusted core working revenue got here in at $4.58 billion versus $4.48 billion anticipated.

The FTSE 100 firm maintained its full-year forecast for revenues to rise by a excessive single-digit share, regardless of geopolitical challenges, and cited its ambitions to develop its U.S. footprint to ship $80 billion income by 2030.

AstraZeneca mentioned final week it plans to make investments $50 billion in bolstering its U.S. manufacturing and analysis capabilities by 2030, changing into the most recent pharmaceutical agency to ramp up its stateside spending within the wake of U.S. commerce tariffs.

— Karen Gilchrist

Good morning from London.

European inventory markets are heading for a better open right this moment, in response to IG knowledge, with main bourses heading for good points of round 0.2%.

On Monday, preliminary optimism over the EU-U.S. framework commerce deal light by the top of the session to depart the Stoxx 600 index at a 0.23% loss. Buyers will proceed to hunt for any readability on the outlook right this moment — significantly as uncertainty stays for sectors together with prescribed drugs, and key merchandise like spirits.

“We see the tentative commerce take care of the EU as just about finishing the run of excellent commerce information that has lifted world confidence and fairness markets, and weakened the [U.S. dollar],” Normal Chartered macro strategist Steve Englander mentioned in a Monday be aware.

“The offers are a destructive from a world progress perspective however seem like one thing that US buying and selling companions can reside with.”

Earnings are additionally in focus, with British financial institution Barclays reporting shortly. Outcomes are additionally out from L’Oréal, AstraZeneca and Ferrovial, together with Boeing, Starbucks, Visa, PayPal and extra Stateside.

— Jenni Reid