Investing.com - European equity indices traded in a tepid manner Tuesday, as investors digested more corporate earnings as well as key central bank decisions and evolving U.S. trade policies.
At 03:15 ET (07:15 GMT), the DAX index in Germany dropped 0.1%, while the CAC 40 in France was largely unchanged and the FTSE 100 in the U.K. gained 0.4%.
London markets were closed Monday, with the benchmark FTSE 100 having set a new record for its longest ever run of daily gains on Friday.
Trade uncertainty weighs
Investors continued to fret over the uncertain global trade outlook, with the optimistic sentiment seen last week, following Beijing’s statement that it was considering Washington’s offer for trade talks, disappearing.
The lack of concrete details on any trade deals between the U.S. and its partners has left investors back where they were at the start of last week, uncertain and very wary.
Additionally, U.S. President Donald Trump on Monday warned on Monday that he will impose import tariffs on the pharmaceutical sector in the next two weeks, which could severely hit this important European sector.
Fed leads central bank parade
Investors are also waiting for the start of the Federal Reserve’s first policy meeting since President Trump announced “reciprocal” tariffs in early April.
The U.S. central bank is widely expected to leave interest rates unchanged on Wednesday, but the fresh quarterly forecasts from the policymakers in June could prompt a different decision, especially as the impact of the tariffs would become clearer at that time.
Elsewhere, there are also policy meetings due this week from the Bank of England , the Norges Bank , and the Riksbank .
Philips cuts profit margin forecast
The quarterly earnings season remains in full flow in Europe, and there are more significant corporate results for investors to digest Tuesday.
Philips (AS: PHG ) cut its profit margin forecast for 2025, with the Dutch healthcare technology company citing a hefty impact from U.S. tariffs despite "substantial tariff mitigations".
Hugo Boss (ETR: BOSSn ) reported a better-than-expected quarterly revenue on Tuesday and confirmed its full-year forecast, even as the German fashion group said subdued global consumer sentiment continues to weigh on the sector due to uncertainty over U.S. tariffs.
Zalando (ETR: ZALG ) reported first-quarter revenue that was stronger than expected, with the European online fashion retailer boosted by additional customers and a good start to spring and summer sales, while confirming its 2025 guidance.
Additionally, DoorDash (NASDAQ: DASH ) will buy British meal delivery firm Deliveroo (OTC: DROOF ) for £2.9 billion ($3.9 billion), as a part of the U.S. online delivery platform’s plans to expand into international markets.
Crude bounces after OPEC+ lifts output plans
Oil prices rose Tuesday, bouncing after the previous session’s sharp drop following the decision by a group of major producers to accelerate increases in output, raising oversupply concerns.
At 03:15 ET, Brent futures climbed 2.2% to $61.55 a barrel, and U.S. West Texas Intermediate crude futures rose 2.3% to $58.43 a barrel.
Both benchmarks had settled at their lowest since February 2021 on Monday, driven by the decision over the weekend by the Organization of Petroleum Exporting Countries and allies, known as OPEC+, to announce much higher production hikes than initially expected.
Saudi Arabia, the world’s largest crude exporter, is set to lead the cartel into unwinding over two years of production cuts, with several OPEC+ members looking to increase sales volumes to offset weaker oil prices.