European Markets Close Higher; Weak HSBC Results Hurt UK Market

(RTTNews) - European stocks closed higher on Tuesday as oil prices fell sharply after U.S. Secretary of War Pete Hegseth said the ceasefire holds at present despite Iranian attacks against the United Arab Emirates. Investors also digested a slew of earnings updates from European companies.

"Ultimately the President is going to make a decision whether anything were to escalate into a violation of a ceasefire," Hegseth said. "Right now, the ceasefire certainly holds but we're going to be watching very, very closely."

Chairman of the Joint Chiefs of Staff Gen. Dan Caine told reporters Iran's attacks fall "below the threshold of restarting major combat operations at this point."

Hegseth also said two U.S. commercial ships, along with American destroyers, have safely transited the Strait of Hormuz, declaring the "lane is clear."

The pan European Stoxx 600 climbed 0.7%. Germany's DAX and France's CAC 40 gained 1.71% and 1.08%, respectively. The U.K.'s FTSE 100 dropped 1.4%, weighed down by selling in bank stocks following HSBC Holdings' disappointing update. Switzerland's SMI gained 0.38%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Iceland, Netherlands, Norway, Poland, Russia, Spain, Sweden and Türkiye closed higher.

Czech Republic and Ireland ended weak, while Portugal closed flat.

In the UK market, Intertek Group gained 6%. Spirax Group moved up nearly 4%, while Polar Capital Technology Trust, BAE Systems, Compass Group, The Sage Group, 3i Group and BT Group gained 1.7%-2.5%.

HSBC Holdings shed nearly 6%. In the first quarter, the lender's profit before tax was $9.38 billion, lower than $9.48 billion last year, reflecting higher expected credit losses and other credit impairment charges, among others.

Natwest Group and Lloyds Banking Group lost 3.7% and 3.4%, respectively. Barclays and Standard Chartered also declined sharply.

Entain fell 6.5%. Fresnillo, Weir Group, Legal & General, Unilever, Haleon, Next and Kingfisher all closed with sharp losses.

In the German market, Infineon climbed 6.5%. Commerzbank, Siemens, Siemens Energy, Rheinmetall and Daimler Truck Holding moved up 3%-4.5%.

Continental, BMW, Allianz, Bayer, MTU Aero Engines, Deutsche Telekom, SAP and BASF also ended with strong gains. Scout 24 gained about 1% thanks to JP Morgan maintaining its buy rating for the stock.

Hugo Boss climbed higher, riding on stronger than expected quarterly results.

Fresenius Medical Care tanked nearly 11% after reporting a bigger than expected drop in first quarter net profits.

Fresenius shed about 3.3%, while Deutsche Boerse and Deutsche Post lost 1.6% and 1%, respectively.

In the French market, Teleperformance jumped 7%. Schneider Electric, ArcelorMittal, STMicroelectronics, Bouygues, Legrand, Safran and Vinci gained 2.5%-4.8%.

Sanofi fell 4.7% after announcing a $294 million AI investment. Danone and EssilorLuxottica lost a little over 1%. Capgemini, Edenred and Reanult ended modestly lower.

In economic news, data released by the Society of Motor Manufacturers and Traders Limited (SMMT) showed UK new car sales rose by 24% year-over-year in April 2026, reaching 149,247 registrations, reflecting a rebound from a weak April 2025.