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European equity markets traded in a mixed manner on Tuesday, as investors balanced a steady flow of corporate earnings against fresh U.K. labor market data and rising geopolitical focus on nuclear talks between the United States and Iran.
By 03:05 ET (08:05 GMT), Germany’s DAX slipped 0.1%, France’s CAC 40 edged up 0.2%, and the U.K.’s FTSE 100 gained 0.3%, reflecting cautious positioning across the region.
Mining Earnings Take Center Stage
The ongoing quarterly earnings season remained the dominant driver of market sentiment, with particular attention on Europe’s heavyweight mining sector.
BHP Group (LON: BHPB) reported a stronger-than-expected underlying profit for the half year, supported by robust copper earnings. Notably, copper overtook iron ore as the miner’s largest earnings contributor for the first time, underpinned by surging prices driven by artificial intelligence-related demand.
Antofagasta (LON: ANTO) also delivered a strong set of results, posting record earnings for 2025. Higher copper prices and stronger by-product revenues fueled a sharp rise in earnings and cash flow, while annual revenue climbed 30%, reflecting improved realized copper prices.
The focus now turns to earnings releases from Europe’s largest miners, including Rio Tinto (LON: RIO), Glencore (LON: GLEN), and Anglo American (LON: AAL), alongside Antofagasta, at a time when many industrial metals are trading near record highs.
Outside the mining space, InterContinental Hotels Group (LON: IHG) reported a 16% increase in adjusted earnings for 2025. However, its Americas division ended the year on a weaker note, with revenue per available room falling 2% in the fourth quarter—the steepest quarterly decline of the year—amid softer U.S. government and inbound international travel.
Spanish gas grid operator Enagas (BME: ENAG) returned to profitability in 2025, exceeding its financial targets. Results were supported by asset disposals, a higher arbitration award linked to its Peruvian investment, and tighter cost controls.
U.K. Labor Market Weakens Further
Macroeconomic data also influenced market sentiment, particularly in the U.K., where fresh figures pointed to further cooling in the labor market. The unemployment rate rose to 5.2% in the three months to December, up from 5.1% previously and marking the highest level since early 2021.
At the same time, annual wage growth excluding bonuses eased to 4.2% in the final three months of 2025, down from 4.4% in the period to November. The combination of rising unemployment and moderating wage pressures is increasing expectations that the Bank of England may proceed with another interest rate cut as early as next month.
Later in the session, attention will turn to Germany’s ZEW economic sentiment index, which is expected to show an improvement in confidence within the Eurozone’s largest economy.
Oil Prices Ease Ahead of U.S.–Iran Talks
In commodity markets, oil prices moved lower as investors assessed the risk of supply disruptions ahead of U.S.–Iran nuclear talks scheduled for later in the day.
Brent crude futures slipped 0.7% to $68.15 a barrel, while U.S. West Texas Intermediate crude rose 0.6% to $63.12 a barrel, with price action distorted by the absence of a settlement on Monday due to a U.S. holiday.
The United States and Iran are holding indirect talks in Geneva aimed at resolving their long-standing nuclear dispute. However, geopolitical tensions remain elevated, with reports that the U.S. military is preparing for the possibility of extended operations against Iran. Adding to the uncertainty, Iran began military drills on Monday in the Strait of Hormuz, a critical global oil shipping route for Gulf exporters.
Overall, European markets remain finely balanced, with near-term direction likely to depend on upcoming earnings releases, central bank expectations, and developments on the geopolitical front.
