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European equity markets inched higher on Tuesday, supported by news of a landmark trade agreement between the European Union and India, while investors awaited a fresh wave of corporate earnings and the Federal Reserve’s interest rate decision.
By 03:05 ET (08:05 GMT), Germany’s DAX added 0.2%, France’s CAC 40 rose 0.3%, and the U.K.’s FTSE 100 advanced 0.3%.
Sentiment was lifted by the announcement of a historic Free Trade Agreement between the EU and India, bringing to a close negotiations that began in 2007. The pact covers economies representing around 25% of global GDP and nearly one-third of world trade.
Trade between India and the EU reached $136.5 billion in the fiscal year through March 2025, and together the two blocs account for close to one-fifth of global trade and about a quarter of the world’s population.
The agreement offered a counterbalance to renewed trade uncertainty after U.S. President Donald Trump said tariffs on South Korean imports would rise to 25% from 15% due to delays in implementing a trade deal agreed last year. Over the weekend, Trump also warned that Canada could face a 100% tariff if it moves ahead with a trade pact with China.
Data released earlier Tuesday showed European car sales grew for a third consecutive year in 2025, with new registrations climbing 2.4% to 13.3 million units, aided by a rebound in December.
There is little in the way of major eurozone data on Tuesday’s calendar, leaving markets focused on the start of the Federal Reserve’s two-day policy meeting later in the session. Analysts broadly expect the central bank to leave rates unchanged after 75 basis points of cuts across its previous three meetings.
Earnings are increasingly in focus, particularly in the United States, where more than 90 S&P 500 companies are due to report this week. Boeing and American Airlines report on Tuesday, followed by Meta Platforms, Tesla, and Microsoft on Wednesday, and Apple on Thursday. So far, roughly three-quarters of U.S. companies have beaten expectations, according to FactSet.
In Europe, attention turns to LVMH’s annual results after the market close, with investors hoping for further signs of recovery in the luxury sector following a prolonged slowdown.
Elsewhere, Sweden’s Sandvik reported a 2% decline in full-year revenue due to currency effects, despite stronger orders and higher profit. HMS Networks posted a 64% jump in fourth-quarter adjusted operating profit on higher sales, even as order intake fell.
Norwegian oil and gas producer Var Energi said fourth-quarter production surged 43% year-on-year, helped by higher volumes and the resolution of operational issues at key assets.
Puma was also in the spotlight after China’s Anta Sports Products announced plans to acquire a 29% stake in the German sportswear maker, becoming its largest shareholder.
