European Stocks Remain Muted
European stocks were muted on Tuesday, with the Stoxx Europe 600 Index closing little changed. The UK outperformed, however, with the FTSE 100 Index rising 0.6%.
HSBC and BP Earnings
The UK’s gains were driven by strong earnings from HSBC Holdings Plc and BP Plc. HSBC reported a 6% increase in first-half profit, beating analysts’ estimates. The bank also announced a $1 billion share buyback program. BP reported a profit of $2.8 billion for the second quarter, up from $800 million a year earlier.
Tech and Automotive Sectors
The tech sector was also a major contributor to the UK’s gains. The FTSE 100 Technology Index rose 1.2%, with ARM Holdings Plc and Sage Group Plc both rising more than 3%. The automotive sector was also strong, with the FTSE 100 Automotive Index rising 1.3%.
European Banks
European banks were mixed, with the Stoxx Europe 600 Banks Index closing 0.2% lower. Deutsche Bank AG and UBS Group AG both fell more than 1%, while Credit Suisse Group AG rose 0.7%.
Retailers and Energy Companies
Retailers were also mixed, with the Stoxx Europe 600 Retail Index closing 0.2% lower. Carrefour SA and Tesco Plc both fell more than 1%, while Marks & Spencer Group Plc rose 0.7%. Energy companies were also mixed, with the Stoxx Europe 600 Oil & Gas Index closing 0.2% lower. Royal Dutch Shell Plc and Total SA both fell more than 1%, while BP Plc rose 0.7%.
European Markets
The Stoxx Europe 600 Index closed 0.1% higher, while the German DAX Index rose 0.2%. The French CAC 40 Index was little changed, while the Spanish IBEX 35 Index fell 0.2%. The Italian FTSE MIB Index rose 0.3%.
Currency Markets
In currency markets, the euro was little changed against the US dollar, while the British pound rose 0.2%. The Japanese yen was also little changed against the US dollar.
Outlook
European stocks remain muted, with the Stoxx Europe 600 Index closing little changed. The UK outperformed, however, with the FTSE 100 Index rising 0.6%. The UK’s gains were driven by strong earnings from HSBC Holdings Plc and BP Plc. The tech sector was also a major contributor to the UK’s gains, with the FTSE 100 Technology Index rising 1.2%. European banks were mixed, with the Stoxx Europe 600 Banks Index closing 0.2% lower. Retailers were also mixed, with the Stoxx Europe 600 Retail Index closing 0.2% lower. Energy companies were also mixed, with the Stoxx Europe 600 Oil & Gas Index closing 0.2% lower. In currency markets, the euro was little changed against the US dollar, while the British pound rose 0.2%.
Looking ahead, investors will be closely watching economic data for signs of a recovery. The European Central Bank is expected to keep interest rates unchanged at its next meeting, but could announce additional stimulus measures. Investors will also be watching for any developments in the Brexit negotiations.