BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European markets closed mostly higher on Tuesday, although gains in most of the markets were just marginal or modest, as investors stayed somewhat cautious, reacting to a mixed batch of economic data, and assessing the impact of steep U.S. tariffs on the global economy.
A slew of fairly strong earnings announcements, and expectations of a rate cut by the Federal Reserve next month helped underpin sentiment. Investors also awaited the Bank of England's monetary policy announcement due on Thursday.
The pan European Stoxx 600 gained 0.15%. The U.K.'s FTSE 100 climbed 0.16% and Germany's DAX ended 0.37% up. France's CAC 40 failed to hold gains and ended 0.14% down. Switzerland's SMI closed up 0.34%.
Among other markets in Europe, Belgium, Czech Republic, Finland, Greece, Ireland, Norway, Russia, Spain and Sweden closed higher.
Denmark, Iceland, Netherlands, Poland and Portugal ended weak. Austria and Turkiye closed flat.
In the UK market, Smith & Nephew shares zoomed 15.3%. The medical technology company has announced a $500 million share buyback after reporting better-than-expected earnings for H1 2025. Adjusted earnings per share were 42.9 cents in the second quarter, compared to 37.6 cents a year ago. The company has maintained fiscal 2025 outlook, expecting revenue growth.
Fresnillo surged 6% after posting a nearly fourfold increase in first-half net profit. The company's first-half net profit climbed to US$393.78 million from US$78.65 million in the prior year.
Diageo gained nearly 5% despite annual profit tumbling almost 30%. BP gained about 3% after it returned to profit in the second quarter.
Melrose Industries gained nearly 5%. Mondi, Croda International, Beazley, IMI, JD Sports Fashion, Next, IAG, LondonMetric Property and Entain advanced 1 to 3%.
Relx, Lloyds Banking Group, 3i Group, Games Workshop, Experian, Haleon, Rolls-Royce Holdings, Babcock International and Airtel Africa lost 1 to 2.3%.
In the German market, Infineon climbed nearly 5% on strong earnings. Profit from continuing operations rose to EUR293 million in the third quarter, compared with EUR230 million in the second quarter. Earnings per share reached EUR0.22, versus EUR0.17 earned in the prior quarter.
Porsche, Daimler Truck Holding, BASF, Brenntag, Volkswagen, BMW and Mercedes-Benz gained 1 to 2.5%. Hannover Rueck, Siemens, Bayer, SAP, RWE and Munich RE also closed notably higher.
Gerresheimer shares moved notably higher after the packaging and medical equipment maker said it plans to separate its struggling moulded glass division before initiating a subsequent sale process.
Rational AG shares moved up sharply. The maker of commercial and industrial kitchen equipment backed its annual sales revenue growth outlook after posting improved Q2 results.
Commerzbank closed lower by about 6%. Fresenius Medical Care shares ended down by about 2% after the world's largest dialysis provider's quarterly results fell short of expectations.
Beiersdorf, Heidelberg Materials, Siemens Energy, Zalando, MTU Aero Engines and Siemens Healthineers lost 1 to 2%.
In the French market, Teleperformance rallied nearly 4%. Airbus, AXA, Unibail Rodamco, Edenred and Pernod Ricard also posted strong gains.
Vivendi closed more than 3% down. STMicroElectronics, Schneider Electric, L'Oreal, Kering, Accor, LVMH and Legrand lost between 1 and 2%.
In economic releases, data from INSEE showed industrial production in France surged by 3.8% month-over-month in June 2025, rebounding from an upwardly revised 0.7% decline in May and far exceeding market expectations of a 0.8% increase. This marked the strongest monthly growth in industrial activity since July 2020.
On a yearly basis, industrial output fell 0.4% in June. For the second quarter, industrial activity declined by 0.1% compared to the previous quarter.
Data from S&P Global said the HCOB France Composite PMI for July was revised down to 48.6, significantly below the flash estimate of 49.6 and June's 49.2. The reading marks the 11th straight month of downturn, driven by declines in both manufacturing (PMI at 48.2 vs 48.1) and services (48.5 vs 49.6).
Meanwhile, business activity in the euro zone grew at a slightly faster pace in July than in June, a survey showed.
The HCOB Eurozone Composite Purchasing Managers' Index, compiled by S&P Global, rose to 50.9 from 50.6 in June - coming in below a preliminary estimate of 51.0.
Separately, Eurostat said that Eurozone producer prices rose 0.8% in June compared to May.
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