European equities traded slightly higher on Tuesday, supported by a firm close on Wall Street and signs that the recent selloff in precious metals has been short-lived.
By early morning trade, Germany’s DAX rose 0.8%, France’s CAC 40 gained 0.4%, and the UK’s FTSE 100 added 0.1%.
Market sentiment improved as gold and silver prices rebounded on Monday after sharp losses late last week, helping ease volatility concerns. The recovery in metals coincided with a strong session on Wall Street, where the Dow Jones Industrial Average climbed more than 1%.
Sentiment also benefited from U.S. President Donald Trump announcing a trade deal with India late Monday, cutting tariffs on Indian goods to 18% from as high as 50%, a move seen as easing trade tensions.
Earnings back in focus
Attention in Europe has shifted back to corporate earnings. Publicis Groupe stood out after reporting better-than-expected fourth-quarter performance, supported by strong client wins. The French advertising group posted €2.03 billion in free cash flow for 2025 and proposed a higher cash dividend.
Amundi reported a 6% rise in adjusted pretax income for 2025, driven by record net inflows, while Akzo Nobel delivered improved margins despite weak demand, as it continues to explore a merger with U.S. rival Axalta.
On Wall Street, investors are awaiting results from several major companies, with Advanced Micro Devices due after the close, as sentiment toward AI-linked stocks remains fragile following mixed tech earnings last week.
French inflation eases
On the data front, French inflation surprised to the downside. Consumer prices fell 0.3% month-on-month in January, leaving annual inflation at just 0.3%, well below expectations.
The European Central Bank meets later this week and is widely expected to keep interest rates unchanged at 2%. Markets will be watching for any comments on the impact of a stronger euro, which briefly rose above $1.20 last week before easing back.
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