European stock markets are poised for a higher open on Tuesday, with major bourses looking to shake off the previous session’s losses.
A wave of strong corporate earnings reports, notably from British bank Barclays and pharmaceutical giant AstraZeneca, is providing a positive catalyst for the market, even as investors continue to seek clarity on the details of the recent US-EU framework trade deal.
Futures data from IG suggests a positive start for European markets, with major bourses like London’s FTSE 100 and Germany’s DAX expected to open around 0.2% higher.
This comes after an initial burst of optimism on Monday over the US-EU trade deal faded by the end of the session, ultimately leaving the pan-European Stoxx 600 index with a 0.23% loss.
Investors will continue to hunt for any new details on the trade outlook today, as uncertainty remains for key sectors including pharmaceuticals and products like spirits, which were not explicitly covered in the initial framework.
Some analysts believe the recent positive trade news has largely run its course for now. “We see the tentative trade deal with the EU as pretty much completing the run of good trade news that has lifted global confidence and equity markets, and weakened the [US dollar],” Standard Chartered macro strategist Steve Englander said in a Monday note.
He added, “The deals are a negative from a global growth perspective but appear to be something that US trading partners can live with.”
Corporate stars shine: AstraZeneca and Barclays beat expectations
Tuesday is a busy day for corporate earnings, with several major companies reporting ahead of the bell, offering a more fundamental focus for investors.
- AstraZeneca: The Anglo-Swedish pharmaceutical firm posted better-than-expected second-quarter earnings, driven by strong demand for its key cancer and biopharmaceutical products.
AstraZeneca reported revenues of $14.46 billion for the three-month period ending June 30, a figure that came in ahead of the $14.07 billion estimated by analysts in an LSEG poll. Quarterly adjusted core operating profit also beat forecasts, coming in at $4.58 billion versus the $4.48 billion anticipated.
The FTSE 100 company maintained its full-year forecast for revenues to rise by a high single-digit percentage, despite geopolitical challenges, and reiterated its ambitions to grow its US footprint to deliver $80 billion in revenue by 2030.
Last week, AstraZeneca had announced plans to invest $50 billion in bolstering its US manufacturing and research capabilities by 2030, becoming the latest pharmaceutical firm to ramp up its stateside spending in the wake of US trade tariffs. - Barclays: British bank Barclays also delivered a strong performance, beating profit expectations and announcing a new £1 billion ($1.33 billion) share buyback program.
The bank reported a pre−tax profit of £2.5 billion ($ 3.34 billion) for the second quarter, comfortably surpassing the mean LSEG forecast of £2.23 billion. Group revenues met analyst projections of £7.2 billion. The bank noted that market volatility had helped to boost its investment banking revenues during the quarter.
A host of other earnings reports are also due today from European giants like L’Oréal and Ferrovial, as well as major US companies including Boeing, Starbucks, Visa, and PayPal, which will be closely watched for their global outlook.
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