Market Report

European stocks turned negative on Tuesday afternoon as investors assessed the latest earnings reports from regional companies.

European markets contended with a series of earnings reports and updates from companies, including Porsche, which cut its 2024 outlook, citing a shortage of special aluminium alloys. Porsche shares retreated on the news and were last down 4.3%.

U.S. stocks were flat to higher as investors awaited Alphabet and Tesla earnings later in the day to gauge if the recent market rally has momentum to spare, while United Parcel Service and NXP Semiconductors plummeted after poor results.

United Parcel Service, seen as a bell weather for the global economy, slumped 12.4% after missing earnings estimates on subdued package delivery demand and higher labour-contract costs.

Oil prices fell for a third consecutive session to hit their lowest in over a month, as investors looked past U.S. president Joe Biden’s decision not to seek a second term and focused on rising stockpiles and signs of weak demand.

An unexpected interest rate cut by the People's Bank of China on Monday boosted the price of gold.

In market news:

Rolls-Royce, Melrose Industries and Bodycote all fell after Airbus cut earnings guidance and delivery targets late on Monday.

Saga gained as the over-50s holidays and financial products firm said it remains on track to hit targets after an in-line start to its financial year, despite ongoing challenges in the insurance market.