European stocks saw a volatile trading session on Tuesday, ultimately finishing higher as investors navigated a mix of corporate earnings reports and ongoing trade tensions. Market sentiment remained cautious following US President Donald Trump’s latest tariff threats, though a temporary pause in planned surcharges provided some relief.
The Stoxx 600 index, which had suffered its sharpest daily decline of the year on Monday, rebounded as financial and automotive shares led the recovery. Meanwhile, concerns about China’s retaliatory tariffs continued to weigh on global markets.
Dublin Market Bounces Back
Ireland’s Iseq index climbed 1.1%, recovering losses from the previous session. AIB and Bank of Ireland, both hit hard on Monday, saw gains of 3.3% and 3%, reaching €5.73 and €9.57 per share, respectively.
Building materials giant Kingspan also recouped earlier losses, rising 2.2% to €66.55. However, Ryanair dipped slightly, closing 0.3% lower at €20.30, while Kerry Group experienced a similar decline to €97.85.
London Equities Struggle Despite Trade Talks
UK stocks saw a mixed session, with the FTSE 100 and FTSE 250 both ending 0.1% lower. Investors reacted positively to news that Trump planned to hold discussions with Chinese President Xi Jinping, raising hopes for a potential easing of trade tensions.
Energy stocks helped offset some losses, climbing 0.8% as oil prices rebounded. However, Vodafone suffered the steepest fall after reporting a continued decline in its German business. Spirits giant Diageo also slipped 1.6% following the withdrawal of its medium-term sales growth target, citing concerns over US tariffs on its tequila and whisky brands.
European Markets See Gains Despite Corporate Weakness
The pan-European Stoxx 600 advanced 0.3%, led by a surge in automobile stocks. Ferrari soared 8% after projecting a 5% increase in revenue and core earnings for the year.
However, the financial sector struggled, with UBS Group tumbling 7% after CEO Sergio Ermotti warned that Switzerland’s increased capital requirements could impact shareholder returns. Meanwhile, BNP Paribas bucked the trend, rising 4.2% on the back of better-than-expected fourth-quarter earnings.
In the tech sector, German chipmaker Infineon surged 10.4% after surpassing revenue forecasts and raising its full-year outlook. On the other hand, Sweden’s Embracer Group plummeted 41.5% ahead of its planned spin-off of tabletop gaming publisher Asmodee.
Wall Street Recovers Amid Market Volatility
In the US, the S&P 500 and Nasdaq edged higher as major tech stocks stabilised despite continued market turbulence. Alphabet climbed 1.8% ahead of its quarterly earnings release, while Nvidia advanced 2.8%.
However, Chinese countermeasures continued to weigh on select companies. Illumina slid 4.3%, and PVH Corp—the parent company of brands such as Calvin Klein—fell 0.8% after China placed them on its “unreliable entity list.”
With uncertainty still looming over global trade, investors remain cautious about future market movements as they await further policy developments from both Washington and Beijing.
