European stocks moved modestly higher on Tuesday, supported by a strong finish on Wall Street overnight and signs that the recent selloff in precious metals was short-lived.
By 03:05 ET (08:05 GMT), Germany’s DAX rose 0.8%, France’s CAC 40 gained 0.4%, and the UK’s FTSE 100 edged up 0.1%.
Metals stabilization lifts market sentiment
Global markets, including European equities, showed signs of stabilizing after several volatile sessions marked by sharp declines in gold and silver prices late last week and over the weekend.
Precious metals rebounded on Monday, helping restore confidence and fueling a strong rally on Wall Street, where the Dow Jones Industrial Average jumped more than 500 points, or around 1%.
Market sentiment also improved after Donald Trump announced a trade agreement with India late Monday. The deal cuts U.S. tariffs on Indian goods to 18% from as high as 50%, following months of tense negotiations, and was widely viewed as a step toward normalizing trade relations.
Publicis and earnings take center stage
In Europe, focus is shifting back to the quarterly earnings season, with several major companies set to report results this week.
Publicis Groupe was in the spotlight on Tuesday after reporting stronger-than-expected underlying revenue growth in the fourth quarter, driven by a series of high-profile client wins.
The French advertising group generated €2.03 billion in free cash flow before working capital changes in 2025, up 10.6% from the previous year. It also proposed a cash dividend of €3.75 per share, an increase of 4.2%.
Elsewhere, Amundi reported a 6% rise in adjusted pretax income for 2025 to €1.86 billion, supported by record net inflows of €88 billion as it launched a new growth strategy through 2028.
Dutch paints maker Akzo Nobel posted a solid improvement in fourth-quarter margins year-on-year, as it navigates weak demand while pursuing a merger with U.S.-based Axalta Coating Systems.
Investors were also digesting earnings from Wall Street heavyweights including PayPal, Pfizer, and Marathon Petroleum, ahead of results from Advanced Micro Devices later in the session. Sentiment toward AI-linked stocks remains fragile following disappointing numbers from Microsoft last week.
French inflation cools ahead of ECB meeting
Economic data released earlier showed inflation remained subdued in France, the euro zone’s second-largest economy.
French consumer prices fell 0.3% month-on-month in January, while annual inflation slowed to just 0.3%, well below expectations of 0.6%.
The European Central Bank meets later this week and is widely expected to keep interest rates unchanged at 2% for a fifth consecutive meeting.
ECB President Christine Lagarde may face questions about the impact of a stronger euro on inflation, after the currency briefly climbed above $1.20 last week, its highest level since 2021. Although the euro has eased since, it remains more than 2% higher over the past two weeks.
Oil prices extend losses
Oil prices slipped for a second straight session on Tuesday, as easing tensions between the U.S. and Iran reduced the geopolitical risk premium in crude markets.
Brent crude futures fell 0.4% to $65.96 per barrel, while West Texas Intermediate crude declined 0.4% to $61.90 per barrel.
Both benchmarks dropped more than 4% in the previous session after Trump said Iran was “seriously talking” with Washington, signaling a possible de-escalation with the OPEC member.
According to Reuters, Iran and the U.S. are expected to resume nuclear talks on Friday in Turkey. Meanwhile, a firm U.S. dollar, hovering near a one-week high, continued to weigh on demand for dollar-denominated crude.
