European stock markets traded mixed on Tuesday, as investors balanced fresh corporate earnings, U.K. labor market data and renewed nuclear talks between the United States and Iran.
At 03:05 ET (08:05 GMT), Germany’s DAX slipped 0.1%, while France’s CAC 40 gained 0.2%. The U.K.’s FTSE 100 rose 0.3%, supported by strength in select heavyweight sectors.
Mining earnings drive market focus
The earnings season remains a central theme for European equities, with the mining sector drawing particular attention this week.
BHP Group reported stronger-than-expected half-year underlying profit, fueled by surging copper prices. For the first time, copper overtook iron ore as the company’s largest earnings contributor, reflecting strong demand linked to artificial intelligence and electrification trends.
Antofagasta posted record earnings for 2025, benefiting from higher copper and by-product prices. Annual revenue climbed 30%, supported by improved realized copper prices and stronger cash flow.
Investors are also awaiting results from major mining companies including Rio Tinto, Glencore and Anglo American, as metals prices hover near recent highs.
Outside the mining space, InterContinental Hotels reported a 16% rise in adjusted earnings for 2025. However, its Americas division saw revenue per available room decline 2% in the fourth quarter, marking the steepest drop of the year as U.S. government travel and international arrivals slowed.
Spanish gas grid operator Enagas returned to profit in 2025, exceeding financial targets thanks to asset disposals, a higher arbitration award related to its Peru investment and improved cost controls.
UK labor market shows further signs of cooling
New data indicated continued softening in the U.K. 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 slowed to 4.2%, down from 4.4% in the previous period. The moderation in pay growth and rising jobless rate have strengthened expectations that the Bank of England could deliver additional interest rate cuts in the coming months.
Economists at Capital Economics noted that the absence of clear signs of labor market recovery increases the likelihood of a rate cut as soon as March rather than April.
Later in the session, the German ZEW economic sentiment index is expected to provide further insight into confidence levels in Europe’s largest economy.
Oil prices retreat ahead of US-Iran talks
Oil markets were also in focus. Brent crude futures declined 0.7% to $68.15 per barrel, while U.S. West Texas Intermediate crude futures gained 0.6% to $63.12 per barrel, with price action influenced by the prior U.S. holiday.
The United States and Iran are holding indirect talks in Geneva aimed at addressing their long-running nuclear dispute. At the same time, the U.S. military is reportedly preparing for potential extended operations in the region if negotiations fail.
Iran has also begun military drills in the Strait of Hormuz, a critical shipping route for global oil exports, raising concerns about potential supply disruptions.
Overall, European markets are navigating a mix of corporate earnings, economic data and geopolitical developments, with investors closely monitoring both macroeconomic signals and commodity price movements.
