European equity indices mostly edged higher Tuesday as investors digested regional corporate earnings and economic data, amid tentative optimism that there will be some respite from U.S. President Donald Trump’s tariffs regime.
At 03:15 ET (07:15 GMT), the DAX index in Germany climbed 1.3%, the FTSE 100 in the U.K. rose 0.7%, while the CAC 40 in France dropped 0.1%.
The pan-Europe Stoxx 600 index gained 0.7%,
European equities have largely continued the positive start to the week on the back of Wall Street exempting electronic devices from reciprocal tariffs, but a great deal of uncertainty remains over President Donald Trump’s wider trade policy.
Federal Reserve Governor Christopher Waller said Monday that inflation from Trump’s tariffs likely will be “transitory,” and indicated that interest rate reductions are still on the table.
That said, the Trump administration is proceeding with probes into imports of drugs and chips as part of a bid to impose tariffs on those sectors, Federal Register filings on Monday showed.
Back in Europe, French consumer inflation remained contained in March, at 0.8% on the year, data confirmed earlier Tuesday, which could help the European Central Bank cut interest rates once more later this week.
ECB policymakers also have to weigh up renewed economic pressures from trade tensions and a stronger euro.
The U.K. unemployment rate remained unchanged in February, at 4.4%, data showed Tuesday, but pay growth across the whole economy, excluding bonuses, rose to an annual 5.9% rate in the three months to February, above the revised 5.8% seen in January.
Bank of England policymakers have been studying wage growth figures closely, as they attempt to judge whether inflation pressures in the labor market are easing sufficiently for it to continue cutting interest rates.
In the corporate sector, disappointing results from French conglomerate LVMH (EPA:LVMH) have weighed on the wider luxury sector.
The world’s leading luxury products group reported a 3% year-on-year fall in first-quarter sales late Monday, with its wines and spirits business saw the sharpest revenue decline, down 9%.
Elsewhere, Publicis Groupe (EPA:PUBP) posted a substantial rise in first-quarter revenue, with a series of major client wins helping offset a volatile global economic backdrop for the French advertising and public relations company.
Beiersdorf (ETR:BEIG) reported a slight beat in first-quarter sales, supported by strong growth in its derma business as sales of Nivea, its core skin and body care brand, rose 2.5% on an organic basis.
Oil prices edged higher Tuesday, supported by optimism over the Trump administration’s tariff exemptions as well as a rebound in China crude oil imports.
At 03:15 ET, Brent futures climbed 0.6% to $65.29 a barrel. U.S. West Texas Intermediate crude futures rose 0.7% to $61.97 a barrel.
Data released on Monday showed that China’s crude oil imports in March were up nearly 5% from a year earlier, as arrivals of Iranian oil surged in anticipation of tighter U.S. sanctions enforcement.
