EUROPEAN shares extended gains to a sixth session on Tuesday, with financials giving support following earnings from HSBC and Deutsche Bank, though focus was on how companies are assessing the implications of US tariffs.
The pan-European Stoxx 600 index ended 0.36 per cent higher at 525.09 points, with the aerospace and defence index leading gains.
Rheinmetall jumped 8.5 per cent after Europe’s top ammunition maker posted a 46 per cent rise in preliminary first-quarter sales, primarily boosted by its defence business.
Also helping the main index was the heavyweight healthcare sector that rose 1.2 per cent. Novo Nordisk rose 2.4 per cent after the drugmaker said it was working with telehealth firms Hims & Hers, Ro and LifeMD to sell Wegovy.
Shares of HSBC rose 3 per cent after the London-based lender launched a US$3 billion share buyback, though it warned that loan demand and credit quality could suffer from the broader fallout of US President Donald Trump’s trade war.
Deutsche Bank advanced 5 per cent after Germany’s largest lender posted a 39 per cent rise in first-quarter profit.
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“Generally speaking, the earnings are not that negative. It is backward-looking, but for most companies that reported so far, it is slightly positive in terms of surprises,” said Elwin De Groot, head of macro strategy at Rabobank.
Trump will sign an order giving automakers building vehicles in the US relief from part of his new 25 per cent vehicle tariffs to allow them time to bring parts supply chains back home, Commerce Secretary Howard Lutnick said.
Global markets have stabilised of late on growing optimism over easing US-China trade tensions after enduring selling pressures earlier this month as Trump’s tariff salvo rattled sentiment.
European Central Bank board member Piero Cipollone warned a global trade war could have an “unambiguously recessionary effect” on the countries involved.
Despite recent gains, the European benchmark was on track for a second consecutive monthly drop.
Capgemini rose 5.6 per cent after the French IT consulting firm posted higher first-quarter revenue.
On the downside, BP fell 2.4 per cent after the oil giant reported a deeper-than-expected 48 per cent drop in net profit and announced the departure of its strategy chief.
Porsche slipped 4.1 per cent after the German luxury sports car maker slashed a series of forecasts for 2025.
Euro zone consumers raised their inflation expectations for the coming years in March, a survey showed, though it predates the US tariffs on most nations.
German consumer sentiment improved further heading into May as the prospect of a new government appeared to soothe households. REUTERS
