European Stocks Rebound

European stocks closed sharply higher on Tuesday, benefiting from some respite in global energy prices and a batch of optimistic corporate earnings. The Eurozone's STOXX 50 rose 1.8% to 5,870 and the pan-European STOXX 600 advanced 0.7%. Heavyweight industrials surged amid the pullback in oil and natural gas prices that Europe imports, with Siemens, Schneider, and Siemens Energy jumping between 5% and 3%. The war in Iran did not escalate to more aggressive striking following brief attacks from the US and Iran yesterday. Meanwhile, AB InBev surged close to 10% after beating estimates for its first-quarter earnings and recording the first growth in sales in around three years. UniCredit soared close to 7% after posting higher profits, raising its full-year outlook, and launching its bid to raise its stake in Commerzbank. Also, Rheinmetall jumped 3.3% after reporting a 7.7% increase in earnings.

European stocks edged higher on Tuesday, with the STOXX 50 rising 0.9% and the STOXX 600 Index gaining 0.3%. The rebound followed a weaker session the previous day, as investors attempted to look past escalating tensions in the Middle East and refocus on the ongoing earnings season. Rheinmetall advanced 1.7% after reporting a 7.7% increase in earnings, while UniCredit jumped 3.2% on the back of stronger net profit and revenue. Also, Anheuser-Busch soared almost 7% after the company's sales rebounded and grew for the first time in about three years. In contrast, HSBC dropped more than 5% after missing pre-tax profit expectations, weighed down by higher projected credit losses and a fraud case in the UK. Banco de Sabadell also declined, falling 2.7% after reporting a drop in profit. Elsewhere, ASML Holding rose 0.7%, and Novo Nordisk gained 1.1%.

European equity markets were poised to open lower on Tuesday as escalating tensions in the Middle East weighed on risk appetite, threatening to derail the four-week ceasefire between the US and Iran. US forces repelled Iranian attacks while escorting two US-flagged vessels through the Strait of Hormuz, while the UAE’s Fujairah port was reportedly hit by an Iranian drone strike. Oil prices climbed again, fueling inflation concerns and strengthening expectations that central banks may need to tighten policy further to keep price pressures in check. In Europe, investors will turn to a fresh batch of earnings reports from AXA, Anheuser-Busch InBev, Infineon Technologies, Ferrari, and Ferguson plc, among others. Meanwhile, HSBC Holdings reported first-quarter pre-tax profit of $9.4 billion, falling short of estimates due to higher expected credit losses and other impairment charges. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were both down roughly 0.1%.