European markets exhibited diverse trends on Tuesday as investors delved into a series of earnings reports, seeking to understand the impact of U.S. tariffs and broad global uncertainties on corporate performance. The Stoxx 50 witnessed a decline of 0.2%, whereas the Stoxx 600 saw a mild increase of 0.2%. In contrast, the automotive sector experienced a downturn of 0.4%, with Volvo Cars leading the drop. This Swedish car manufacturer not only announced a significant decline in its first-quarter profit but also opted to withdraw its full-year guidance. Additionally, Volvo revealed plans for cost reductions totaling SEK 18 billion (approximately $1.87 billion). Porsche encountered a 7.4% decrease after revising down its projections for sales and profit margins, attributing the change to U.S. tariffs.
Turning to the banking sector, HSBC surpassed first-quarter expectations despite experiencing annual declines in both profit and revenue. Conversely, Deutsche Bank saw a 3.1% rise in its share price, buoyed by unexpectedly strong profit figures. Among airlines, Lufthansa decreased by 1.6% after cautioning about escalating risks and diminished demand for transatlantic travel. Sportswear giant Adidas reported a remarkable 155% surge in its first-quarter profit, and in response to tariffs, signaled its intention to increase prices in the United States. On the energy front, BP fell short of profit forecasts, citing the challenges of declining oil prices and ongoing strategic adjustments.
