Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com - European stocks climbed higher Tuesday as investors continued to digest the U.S./EU trade agreement as well as more corporate earnings, ahead of the start of the latest two-day Federal Reserve meeting.
At 03:05 ET (07:05 GMT), the DAX index in Germany climbed 0.5%, the CAC 40 in France gained 0.2% and the FTSE 100 in the U.K. rose 0.1%.
EU-U.S. trade agreement
The trade agreement between the U.S. and the European Union, announced over the weekend, reduces the uncertainty for corporations within the two trading blocs, helping equities push higher.
However, gains are subdued with the terms of the deal seen favoring the U.S., and will likely weigh on the economic outlook for the European Union.
French Prime Minister Francois Bayrou denounced the agreement between two economies accounting for almost a third of global trade, which will see the U.S. impose a 15% import tariff on most EU goods from next month.
"It is a dark day when an alliance of free peoples, brought together to affirm their common values and to defend their common interests, resigns itself to submission," Bayrou wrote on X.
Additionally, German Chancellor Friedrich Merz said his economy would suffer "significant" damage due to the agreed tariffs.
Stellantis offers optimistic guidance
In the corporate sector, Stellantis (NYSE:STLA) said it expects net revenues to grow and operating income margins to remain in the low single digits in the second half, signaling a gradual recovery following a difficult first half of the year.
The automaker also projected better industrial free cash flow in the second half, after burning through E3 billion ($3.48 billion) during the first six months.
Barclays (LON:BARC) first-half profit rose by a better-than-expected 23%, with the British lender’s markets business reaping bumper returns from the frenzied trading activity sparked by the Trump administration’s trade tariffs.
AstraZeneca (NASDAQ:AZN) beat second-quarter earnings expectations, helped by strong sales of key cancer, heart and kidney disease drugs, but maintained its full-year forecast as pricing pressures and global trade risks remain challenges.
Philips (AS:PHG) on Tuesday reported a 47% drop in second-quarter net income, with the Dutch health technology company citing the absence of a one-time insurance gain recorded in the prior year, while key operating metrics including margins and free cash flow improved.
Sika (SIX:SIKA) raised its profit margins in the first half of 2025, despite a decline in the Swiss construction chemicals group’s reported revenue driven by foreign exchange effects.
Air Liquide (OTC:AIQUY) lifted its operating margin and reported higher earnings in the first half of 2025, with the French supplier of industrial gases supported by cost controls and investment momentum across energy transition and electronics.
Fed to start latest policy meeting
On the economic front, the main focus will be on the start of the two-day monetary policy meeting from the Federal Reserve later in the session.
The U.S. central bank will likely leave interest rates unchanged, but there is likely to be a debate among the policy members about the potential for lower borrowing costs, especially after Trump on Monday again called on the Federal Reserve to cut rates, saying it would help propel the U.S. economy.
Crude steadies after sharp gains
Oil prices fluctuated around the flat line Tuesday ahead of the start of the latest Fed meeting in the aftermath of the trade agreement between the U.S. and the European Union.
At 03:05 ET, Brent futures traded flat at $69.32 a barrel, and U.S. West Texas Intermediate crude futures traded unchanged at $66.71 a barrel.
Both contracts settled more than 2% higher in the previous session, with Brent touching its highest level since July 18, after the U.S./EU deal sidestepped a full-blown trade war between the two major allies that would have dimmed the outlook for fuel demand.
The agreement also calls for $750 billion of EU purchases of U.S. energy in the coming years.