By Sukriti Gupta and Sanchayaita Roy
(Reuters) -European shares nudged higher on Tuesday, as investor sentiment improved after U.S. President Donald Trump signalled a readiness to negotiate tariffs with the European Union, while the spotlight turns to corporate earnings.
The pan-European STOXX 600 index gained 0.3% to 548.73 points, as of 0840 GMT.
Among other regional indexes, Germany’s DAX gained 0.4%, France’s CAC 40 rose 0.3%, while Spain’s IBEX lost 0.2% and the UK’s FTSE 100 was flat.
On Monday, the EU accused the U.S.
of resisting a trade deal and warned of countermeasures if no agreement is reached.
Trump, meanwhile, said he was open to talks, adding that EU officials would visit the U.S. for trade negotiations.
Trump had escalated trade tensions over the weekend, threatening a 30% tariff on most EU imports from August 1.
“Investors are looking past the initial headline comments from the U.S. and waiting to see how negotiations move forward”, said Richard Flax, chief investment officer at Moneyfarm.
Meanwhile, with an ever-changing tariff picture in the market, the attention is shifting to domestic and Wall Street earnings for clues into the trade war’s impact on corporate bottom lines, with the world’s biggest supplier of computer chip-making equipment ASML set to report on Wednesday.
Flax said, European earnings will be decent but not spectacular, since the domestic economy remains subdued, though recent policy rate cuts have provided some support.
In the market, media stocks rose 1.2%, while auto stocks and technology sector gained over 1% each.
Meanwhile, telecom shares fell 1%.
In corporate news, Accelleron jumped 13.1%, hitting a record high, after the engine components maker increased its revenue forecast for 2025.
Orsted rose 8.2% after Morgan Stanley raised the Danish offshore wind developer to “overweight” from “equal weight”.
Thule gained 4.8% after the Swedish outdoor equipment maker reported better-than-expected adjusted earnings in the second quarter.
Conversely, UK’s B&M slumped 6.9%, hitting a more-than-five-year low, after the discount retailer reported higher like-for-like revenue in its domestic business in the first quarter.
Barratt Redrow fell to a nearly three-year low, down 7.7%, after Britain’s largest homebuilder reported that home completions missed expectations for fiscal 2025.
On Tuesday, data showed euro zone industrial production increased by 1.7% in May from the previous month.
In the U.S., investors will focus on second-quarter reports from major banks, while also awaiting U.S.
consumer price data for June, due later in the day.
(Reporting by Sukriti Gupta and Sanchayaita Roy in Bengaluru; Editing by Rashmi Aich and Vijay Kishore)
