Investing.com - European equity indices traded in a mixed fashion Tuesday, steadying after the optimism generated by the U.S.-China trade deal as investors studied more corporate earnings and economic data.
At 03:02 ET (07:02 GMT), the DAX index in Germany climbed 0.2%, while the CAC 40 in France traded 0.1% lower, and the FTSE 100 in the U.K. fell 0.2%.
U.K. jobs market cools further
The news of a trade deal between the two largest economies in the world, resulting in a suspension of the worst tariffs for 90 days, helped European stock markets open the week on a positive note.
However, attention is now turning back to more mundane matters, i.e. the state of the regional economy and corporate earnings.
Data released earlier Tuesday showed a further slowdown in Britain’s jobs market, as employment fell and growth in wages cooled, with the latest unemployment rate rising to 4.5% in the three months to March, from 4.4%.
There could, however, be some good news from the release of the May German investor sentiment survey by the ZEW economic research institute later in the session.
The index is expected to rebound after tariff concerns sent morale to the lowest since the start of the Ukraine war.
Later in the week sees the release of growth data for the first quarter in the eurozone as a whole as well as inflation data for a number of key European countries.
The European Central Bank has cut interest rates seven times in the past year as inflation has been rapidly retreating, and policymakers have already started to lay the groundwork for another cut in early June.
Bayer (ETR:BAYGN) maintains full-year forecast
In the European corporate sector, German healthcare giant Bayer (OTC:BAYRY) confirmed its full-year forecast for 2025 despite a sharp decline in first-quarter profit, as growth in its pharmaceuticals and consumer health units offset weakness in its crop science business.
The pharmaceutical sector could face pressure from the Trump administration after the U.S. president railed against high U.S. drug prices in a social media post on Sunday.
Elsewhere, Germany’ engineering firm Duerr (ETR:DUEG) reported a sharp decline in order intake in the first quarter, while sales remained steady and earnings improved notably.
Crude steadies after sharp gains
Oil prices steadied Tuesday near a two-week high, as traders digested the recent announcement of a China-U.S. trade deal.
At 03:02 ET, Brent futures gained 0.1% to $65.02 a barrel, and U.S. West Texas Intermediate crude futures rose 0.2% to $62.04 a barrel.
Both contracts rose by about 1.5% on Monday, adding to the previous week’s gains, to their highest settlements since April 28.
The U.S. and China agreed to slash steep tariffs for at least 90 days on Monday, but plenty of uncertainty still exists as the underlying factors that led to the dispute remain, including the U.S. trade deficit with China.