Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - European stocks traded in a steady manner Tuesday amid caution ahead of the Trump administration’s July 9 tariff deadline and the release of key inflation data.
At 03:05 ET (07:05 GMT), the DAX index in Germany gained 0.1%, the CAC 40 in France climbed 0.1% and the FTSE 100 in the U.K. rose 0.3%.
Trade deals eyed
Global stock markets have been buoyed by the expectation that the Trump administration will agree to a series of trade deals next week’s deadline, particularly after last week’s announcement that the U.S. had finalized a trade deal with China.
Additionally, Canada withdrew its digital services tax on tech companies to revive stalled trade talks with the U.S., further improving trade sentiment.
That said, U.S. President Donald Trump called Japan "spoiled" as a deal between the two nations remained elusive, and U.S. Treasury Secretary Scott Bessent warned that countries could be notified of sharply higher tariffs even amid ongoing good-faith negotiations, adding that he expects a flurry of deals ahead of the deadline.
In Europe, European Commission President Ursula von der Leyen expressed belief last week that a deal can be secured before the July 9 deadline.
If no agreement is reached by July 9, the U.S. plans to impose a 50% tariff on nearly all EU products, while the European bloc is prepared to implement its own set of countermeasures.
Eurozone CPI data eyed
The big data release in Europe Tuesday is the latest preliminary inflation data from the eurozone. Analysts expect the rate to have hit 2% in the year to June, which would be in line with the European Central Bank’s target.
Earlier this month, the ECB cut rates for the eighth time in a year but indicated it would likely pause at its next meeting, citing uncertainty linked to trade tensions with the United States.
The central bank has lowered interest rates eight times since last June, cutting by a total of two percentage points to support a eurozone economy already under pressure before being further hit by volatile U.S. economic and trade policies.
Manufacturing purchasing managers indexes data for France, Germany, and eurozone for June are due for release later in the session, and will offer information about the health of this important sector.
Sodexo warns over revenue growth
In the corporate sector, Sodexo (EPA:EXHO) said it expects fiscal 2025 revenue growth to be at the lower end of its forecast range, following third-quarter results that showed mixed regional performance and currency headwinds.
The French food service company reiterated its full-year guidance of 3% to 4% organic revenue growth and a 10 to 20 basis point improvement in underlying operating profit margin at constant currencies. However, it now expects to reach the lower end of both ranges.
French carmaker Renault (EPA:RENA) said it will report an extraordinary loss of about €9.5 billion ($11.2 billion) on its stake in Nissan (OTC:NSANY) Motor in the first half after changing the way it accounts for the investment.
J Sainsbury (LON:SBRY) reported a 4.9% rise in retail sales excluding fuel for the first quarter of 2025/26, marking its highest market share in nearly a decade.
Brent slips to three-week low
Crude prices edged higher Tuesday, bouncing off a three-week low caused by pressure from easing supply concerns and expectations of an OPEC+ production hike.
At 03:05 ET, Brent futures climbed 0.3% to $66.91 a barrel, falling to the lowest level since June 11, just before the onset of the Israel-Iran war, and U.S. West Texas Intermediate crude futures rose 0.2% to $65.25 a barrel.
The Organization of Petroleum Exporting Countries and allies, known as OPEC+, is set to meet on July 6, and Reuters reported last week that the group will increase output by 411,000 barrels per day in August, following similar hikes in May, June, and July.
The increase would bring the OPEC+’s total supply increase for the year to 1.78 million barrels per day, although the hike is still smaller than the total number of production cuts enacted by the producers’ group in the past two years.