European Stocks Close Higher As Investors React To Earnings

(RTTNews) - European stocks closed on a firm note on Tuesday as investors reacted to a slew of earnings announcements from the region, and looked ahead to monetary policy announcements from some leading central banks, including the U.S. Federal Reserve.

Despite some top European leaders voicing concerns about the trade framework agreed to by the U.S. and the European Union over the weekend, investors picked up stocks, choosing to focus on corporate earnings updates.

Investors shrugged off some concerns voiced by several European officials that the US-EU deal arrived over the weekend is "unsatisfactory" and "significantly imbalanced."

Several top officials, including a senior European lawmaker, have criticised the draft trade agreement between the US and EU, warning that the deal could undermine the bloc's economic stability and job security.

The pan European Stoxx 600 climbed 0.43%. The U.K.'s FTSE 100 gained 0.52%, Germany's DAX and France's CAC 40 gained 1.15% and 1.22%, respectively. Switzerland's SMI closed up 0.37%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Greece, Iceland, Netherlands, Norway, Poland, Portugal, Spain and Sweden ended higher.

Denmark, Finland and Turkiye closed weak, while Ireland ended flat.

In the UK market, Games Workshop gained nearly 5.5%, buoyed by a 30% jump in annual pre-tax profit.

AstraZeneca climbed nearly 3.5%. The drug major said its second quarter profit climbed 30% to $3.13 billion from last year's $2.40 billion. Earnings per share were $1.57, up from $1.24 a year ago. Core earnings per share were $2.17 for the period.

AstraZenecas's EBITDA climbed 22% to $4.90 billion in the second quarter, from last year's $4.03 billion.

Looking ahead, AstraZeneca continues to expect fiscal 2025 Core earnings per share to increase by a low double-digit percentage, and total revenue to increase by a high single-digit percentage.

Barclays gained 2.75%, lifted by news about a 1 billion pound share buyback. Natwest Group, Standard Chartered, Lloyds Banking Group and HSBC Holdings climbed 1 to 2.5%.

Endeavour Mining, Fresnillo, Rolls-Royce Holding, Convatec Group, British American Tobacco, Imperial Brands, Centrica, IMI, Coca-Cola Europacific Partners, Diploma, Informa and Entain also ended with strong gains.

Croda International tanked more than 10% as the company's operating cash flow for the first half dropped to £96.5 million, down sharply from £194.5 million a year earlier, primarily due to working capital outflows. Free cash flow declined to £34.2 million from £122.7 million.

Rentokil Initial, Glencore, Unite Group, Whitbread, Pershing Square Holding, WPP, JD Sports Fashion, Mondi and BT Group lost 1.6 to 3.7%.

In the German market, Rheinmetall, MTU Aero Engines and Siemens Energy gained 3 to 4%. Deutsche Bank, SAP, Deutsche Telekom, Deutsche Boerse, Sartorius, Allianz, Commerzbank, Infineon, Siemens Healthineers and Continental moved up 1.3 to 2%.

Shares of remote access software solutions provider TeamViewer SE gained 5.2% after the company confirmed its annual revenue outlook after reporting a rise in earnings for the first half.

Deutsche Post, BASF, Porsche, Bayer, Volkswagen and Puma ended lower by 1.2 to 2.7%.

In the French market, EssilorLuxottica surged nearly 7%, lifted by an announcement from the company that its first-half operating profit rose, helping it to offset tariff-related headwinds. The company said its first-have adjusted operating profit rose to 2.53 billion euros, up 4.1% compared to a year ago.

Thales gained about 2.7%, while Safran, Bouygues, Orange, Air Liquide, Societe Generale, Eurofins Scientific, Vinci and BNP Paribas climbed 1.5 to 2.2%. Airbus, Schneider Electric, AXA, Danone, Renault and Saint Gobain also ended notably higher.

Edenred drifted down 3.5%. LVMH lost nearly 3% and Pernod Ricard closed lower by about 2.1%. Kering and ArcelorMittal also settled weak.

In economic news, UK mortgage approvals rose to a three-month high in June and consumer credit increased notably, official data revealed on Tuesday.

Approvals for house purchases increased to a three-month high of 64,167 in June from 63,288 in May, the Bank of England reported. Approvals were above economists' forecast of 63,000.

Net borrowing of mortgage debt by individuals increased by GBP 3.1 billion to GBP 5.3 billion in June, compared to a GBP 2.8 billion increase of net borrowing to GBP 2.2 billion in May.

Initial jobless claims in France decreased to -21,600 in June from -11,200 in May 2025, according to a report from the Directorate of Research, Economic Studies and Statistics.