The pan-European Stoxx 600 hovered around the flatline by mid-afternoon, having given back earlier gains of 0.5%. Chemicals fell 1.9% while media stocks added 1.6%.
Among the major companies reporting quarterly earnings on Tuesday were HSBC, UBS, Novartis, Randstad, Air Liquide, SAP and Covestro.
Shares in Europe closed higher on Monday after the announcement that Rishi Sunak would replace Liz Truss as U.K. prime minister. Sunak was formally confirmed as the country’s new leader on Tuesday amid a period of economic turbulence.
U.S. stock futures pulled back in early premarket trade on Tuesday ahead of a big few days of earnings from the world’s largest tech companies.
Shares in Asia-Pacific nudged mostly higher overnight after a second consecutive positive trading session on Wall Street, though Hong Kong and mainland Chinese markets were volatile following the conclusion of the China’s party congress and the release of a slew of delayed economic data.
Rishi Sunak said Tuesday that he would place “economic stability and confidence at the heart of the government’s agenda” as he gave his first speech as U.K. prime minister.
Also warning of “difficult decisions to come,” Sunak said he had been elected by lawmakers from the ruling Conservative Party “in part” to fix the mistakes made under predecessor Liz Truss’ disastrous 45-day tenure.
Adidas terminates partnership with Ye following rapper’s antisemitic remarks
Adidas on Tuesday ended its partnership with Ye, formerly known as Kanye West, after the musician made a series of offensive and antisemitic comments.
Adidas said in a statement: “Adidas does not tolerate antisemitism and any other sort of hate speech. Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.”
German economic sentiment remains gloomy
German business sentiment remained bleak in October, according to the Ifo Institute’s business climate index published Tuesday. The index slipped to 84.3 points in October from 84.4 points in September.
“Companies were less satisfied with their current business. Their expectations improved, but they are still worried about the coming months. The German economy is facing a difficult winter,” said Ifo Institute President Clemens Fuest.
Stocks on the move: Viaplay down 29%, UMG up 7%
Earnings were a key driver of share price movement in Europe on Tuesday.
At the bottom of the Stoxx 600, shares of Sweden’s Viaplay Group plunged 29% in early trade after the media company reported a third-quarter operating loss of 100 million Swedish ($8.96 million).
HSBC shares slid more than 6% after the U.K.-headquartered bank reported a 42% slide in pretax profit.
At the top of the European blue chip index, Universal Music Group shares gained 7% during early deals in the Netherlands after Apple increased the price of its streaming service, a move likely to increase revenue for the music giant.