European Equities Rise on Strong Corporate Results and New Trade Pact

On Tuesday, European equities experienced a modest increase, driven by strong performance from corporate giants like EssilorLuxottica. Investors were particularly focused on the implications of the newly signed trade agreement between Washington and Brussels, which has sparked widespread interest in the financial sectors.

The pan-European STOXX 600 index climbed 0.3% by early morning GMT. Similarly, major regional indices such as Germany's DAX and France's CAC saw gains of 0.5%. Despite these optimistic movements, uncertainty looms due to a new 15% levy on most EU goods, which is a significant rise compared to pre-2025 levels.

EssilorLuxottica's shares surged 5.4% following successful first-half operating profit reports. Meanwhile, Philips rose nearly 9% after adjusting its tariff impact estimates post the U.S.-EU trade deal. Conversely, Inchcape emerged as the session's biggest loser, with a 6.3% decline in shares linked to its first-half profit decrease due to tariff repercussions.

(With inputs from agencies.)