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European Stocks Hover Near Records as FTSE 100 Pauses

FTSE 100 Little Changed on Tuesday

The FTSE 100 traded around the flatline on Tuesday after falling 0.4% in the previous session, with gains in energy stocks helping to offset broader weakness. Shell and BP both rose more than 1% as oil prices climbed amid renewed uncertainty over a potential agreement to reopen the Strait of Hormuz, after US President Donald Trump issued tougher demands on Iran. Elsewhere, InterContinental Hotels Group fell more than 2% despite reporting first-half profit above expectations, supported by strong performance in the US and Greater China, which offset disruption in the Middle East. Housebuilder Bellway also warned that the near-term outlook remained uncertain despite exceeding forecasts for home completions and housing revenue. On the data front, the BRC reported that UK retail sales rose 1.3% year-on-year in July, below the 12-month average of 1.8%. However, Barclays’ broader consumer spending measure increased 2%, marking its strongest growth of the year.

European Stocks Hit New Record Levels

European stocks were slightly higher on Tuesday, with the STOXX 50 rising 0.2% and the STOXX 600 gaining 0.1% to reach fresh record levels. Strong corporate earnings have been supporting investor confidence, while another rise in oil prices amid mounting uncertainty over a U.S.-Iran deal has tempered the positive mood. Technology stocks, meanwhile, remained well supported following news that Intel raised $20 billion through an upsized share sale, while Nvidia announced plans to secure $500 billion in financing for AI infrastructure. Among major technology stocks, ASML Holding rose 0.9%, SAP gained 0.8%, Infineon Technologies added 0.1%, and Schneider Electric advanced 0.2%. The energy sector also traded higher, benefiting from elevated oil prices. TotalEnergies climbed 1.3%, Shell rose 1%, BP gained 1.5%, and Eni advanced 2%. Travel and leisure stocks, meanwhile, traded lower amid concerns over rising fuel costs, with Airbus shares down 1.3%.

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