European Stocks Close Mostly Higher

(RTTNews) - European stocks closed mostly higher on Tuesday and a few markets settled at fresh record highs, as investors reacted to earnings updates, and continued to monitor the developments on the geopolitical front.

The markets also digested the data showing a bigger than estimated increase in France's consumer price inflation in the month of January, and data showing UK's unemployment rate remained unchanged in the fourth quarter.

Defense stocks attracted buyers once again amid prospects of increased military spending by European governments to support Ukraine.

The focus was also on U.S. - Russia talks in Riyadh to bring an end to the Russia-Ukraine war. Russia and the U.S. are expected to announce teams to negotiate a path to ending the war in Ukraine besides also ensuring the "earliest possible appointment" of ambassadors in both Moscow and Washington. "Russia and the United States will hold regular consultations on Ukraine after both sides appoint negotiating teams," Russian Foreign Minister Sergei Lavrov said at a press briefing following talks with US officials in Riyadh.

The pan European Stoxx 600 climbed 0.32%. Germany's DAX and France's CAC 40 gained 0.2% and 0.21%, respectively, while the U.K.'s FTSE 100 edged down 0.01%. Switzerland's SMI gained 0.15%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Ireland, Poland, Portugal, Spain, Sweden and Turkiye closed higher.

Iceland, Netherlands and Russia ended flat.

In the UK market, HSBC Holdings gained nearly 2%. GSK, Vodafone Group, Rolls-Royce Holdings, Natwest Group, Barclays Group, St. James's Place and Standard Chartered climbed 1.2 to 1.7%. Glencore and Melrose Industries posted moderate gains.

Antofagasta started off on a bright note, but suffered a mid session setback and finally closed with a modest gain. Antofagasta backed its FY25 outlook after reporting strong 2024 performance with 5% revenue growth and a widened EBITDA margin at 52%.

Intercontinental Hotels Group ended down 4.7%. The global hospitality leader announced the acquisition of the Ruby brand from Ruby SARL for an initial purchase consideration of €110.5 million (approximately $116 million).

Sainsbury (J), Tesco, Marks & Spencer, Airtel Africa, Mondi, Kingfisher, SSE and JD Sports Fashion lost 2 to 4%.

BT Group closed nearly 3% down, as Citi has downgraded its rating on the shares to 'sell' from 'buy' and cut the price target.

In the German market, Daimler Truck Holding climbed nearly 2%. Commerzbank gained 1.7%, while Continental, Deutsche Telekom, Deutsche Bank, Bayer, Deutsche Boerse, MTU Aero Engines and Mercedes-Benz advanced 1 to 1.3%.

Zalando ended down 2.5%. Adidas, Sartorius, BASF, Puma, Henkel, Symrise, Rheinmetall, RWE, Vonovia, SAP and Fresenius closed lower by 0.5 to 1.5%.

In the French market, Thales gained 2.5%, extending gains from previous session. Schneider Electric, Societe General and Legrand gained 2.2 to 2.5%. BNP Paribas climbed nearly 2%.

Airbus, Credit Agricole, Vivendi, Vinci, Stellantis, LVMH, Teleperformance, Renault and Saint Gobain also closed on firm note.

Capgemini tanked more than 10% after reporting a 2% drop in its annual constant currency rates.

Edenred closed 4.7% down. The voucher company missed organic growth estimates for Q4. The company's operating revenue growth came in at 4.6% in Q4, well below the expected 6.7% growth.

Pernod Ricard, Kering, Accor, Carrefour and Veolia closed lower by 1 to 1.7%.

Data from the Office for National Statistics showed the UK unemployment rate remained unchanged in the fourth quarter, with the jobless rate coming in a 4.4%, the same as in the preceding period. Economists had forecast the rate to rise to 4.5%.

In the three months to December, average earnings excluding bonus grew at a pace of 5.9% annually, in line with expectations. At the same time, including bonus, earnings advanced 6% compared to economists' forecast of 5.9%.

Data showed that payroll employees for January increased 21,000 from the last month and increased by 49,000 from the previous year to 30.4 million.

Data from the statistical office INSEE said the consumer price inflation in France climbed to 1.7% in January from 1.3% a month earlier. The latest inflation was revised upwards from the flash data reading of 1.4%.

Meanwhile, harmonized inflation held steady at 1.8%, as estimated. Moreover, inflation remained below the European Central Bank's target of 2%.

On a monthly basis, consumer prices rose at a stable rate of 0.2%, revised from a 0.1% fall estimated initially. Meanwhile, the harmonized index of consumer prices dropped 0.2% after a 0.2% gain in the previous month.