Philips shares up 10% as health tech giant flags reduced U.S. tariff impact

European markets buoyed by earnings

European markets are shaking off their EU-U.S. trade deal blues as a series of better-than-expected earnings dominate the picture. The Stoxx 600 index is 0.57% higher, with both France's CAC 40 and Germany's DAX up by around 1%.

Philips is still leading gains, up 10%, after the consumer health tech group said it now expects a lower tariff hit than previously forecast.

“Overall, we have momentum, we see that we can take that momentum into the second half and we that have the clarity on tariffs now also to further mitigate what is out there,” CEO Roy Jakobs told CNBC's “Squawk Box Europe” on Tuesday.

EssilorLuxottica is another top performer, up 6%, after reporting 7.3% revenue growth in the second quarter as well as the first half, as demand for artificial intelligence glasses surged. Sales of its Ray-Ban Meta glasses more than tripled in the first six months of the year.

Drugmaker AstraZeneca ticked 1.75% higher after its own second-quarter earnings beat.

Shares of Stellantis are down 2.1%, despite the troubled automotive giant reinstating its financial guidance and saying it expects a gradual recovery over the coming months.

Philips jumps on improved tariff outlook

Shares of Philips soared nearly 14% at the market open, after the Dutch consumer healthcare group raised its full-year margin outlook, saying it now expects a hit of 150 to 200 million euros ($230.1 million) from tariffs, down from the 250 to 300 million euros it had previously estimated.

Sales in the second quarter came in at 4.3 billion euros, in-line with expectations.

Barclays beats Q2 profit estimates

British bank Barclays beat profit expectations and announced a £1 billion ($1.33 billion) share buyback as market volatility boosted investment banking revenues.

Pre-tax profit beat estimates at £2.5 billion ($3.34 billion) in the second quarter, compared with a mean LSEG forecast of £2.23 billion. Group revenues met analyst projections of £7.2 billion.

Read more here.

AstraZeneca posts better-than-expected second quarter results

AstraZeneca on Tuesday posted better-than-expected second quarter earnings, driven by demand for key cancers and biopharmaceutical products, and reiterated its commitment to expanding the business in the U.S.

The Anglo-Swedish pharma firm posted revenues of $14.46 billion over the three-month period to June 30, ahead of the $14.07 billion estimated by analysts in an LSEG poll.

Quarterly adjusted core operating profit came in at $4.58 billion versus $4.48 billion anticipated.

The FTSE 100 company maintained its full-year forecast for revenues to rise by a high single-digit percentage, despite geopolitical challenges, and cited its ambitions to grow its U.S. footprint to deliver $80 billion revenue by 2030.

AstraZeneca said last week it plans to invest $50 billion in bolstering its U.S. manufacturing and research capabilities by 2030, becoming the latest pharmaceutical firm to ramp up its stateside spending in the wake of U.S. trade tariffs.

European stock markets are heading for a higher open today, according to IG data, with major bourses heading for gains of around 0.2%.

On Monday, initial optimism over the EU-U.S. framework trade deal faded by the end of the session to leave the Stoxx 600 index at a 0.23% loss. Investors will continue to hunt for any clarity on the outlook today — particularly as uncertainty remains for sectors including pharmaceuticals, and key products like spirits.

“We see the tentative trade deal with the EU as pretty much completing the run of good trade news that has lifted global confidence and equity markets, and weakened the [U.S. dollar],” Standard Chartered macro strategist Steve Englander said in a Monday note.

“The deals are a negative from a global growth perspective but appear to be something that US trading partners can live with.”

Earnings are also in focus, with British bank Barclays reporting shortly. Results are also out from L'Oréal, AstraZeneca and Ferrovial, along with Boeing, Starbucks, Visa, PayPal and more Stateside.