European shares edged toward record highs as corporate earnings lifted risk appetite, with the pan-European STOXX 600 index rising 0.4% in morning trading and trading near the record high reached over the weekend.
Germany's DAX and France's CAC 40 each rose 0.6%, the UK's FTSE 100 gained 0.5%, and Italy's FTSE MIB added 0.7% on Tuesday, supported by corporate earnings.
The pan-European STOXX 600 index rose 0.4% in morning trading.
HSBC and Bayer reported financial results above expectations, increasing investor appetite and helping European regional stocks set to scale fresh peaks. Analysts are turning even more optimistic about a broad range of European sectors.
Analysts said strong second-quarter earnings and lower energy prices continued to support European stocks, while macroeconomic uncertainties had only a limited impact on pricing.
However, the consumer sector showed a weaker picture. Nivea maker Beiersdorf cut its 2026 sales forecast due to weakening consumer demand, and its shares fell 1.1% after the forecast cut. Luxury fashion brand Salvatore Ferragamo fell 8.5% after its first-half financial results, becoming one of the day's biggest decliners.
