Stoxx 600, FTSE, DAX, CAC, BP earnings

Diageo shares have pared gains, last trading around 3% higher as investors digest the drinks maker’s earnings report. CNBC’s Karen Tso dives into the details.

Shares of Infineon are up 5% after the German semiconductor beat on adjusted earnings per share in the latest quarter, coming in at 37 cents ($0.43) versus an LSEG estimate of 33 cents.

That was on the back of 3.7 billion euros in revenue, in-line with expectations and virtually unchanged on the year.

Infineon is the latest European firm to flag the impact of a strong euro on its revenue growth, saying the figure would have come in 9% higher on the year if not for euro appreciation, versus the 3% growth it reported.

Infineon CFO Sven Schneider told CNBC’s “Europe Early Edition” that the indirect impact from tariffs on the business remained difficult to estimate because its customers were not providing full feedback, but that it appeared to be “less pronounced than we originally thought,” leading to “some growth momentum in the current quarter.”

— Jordan Butt, Jenni Reid

British drinks maker Diageo has forecast flat sales growth in 2026 as its once again raised its anticipated tariff hit to $200 million annually and increased its cost-savings target to to $625 million.

The Guinness and Johnnie Walker maker previously forecast a $150 million annual hit to operating profits as a results of tariffs, but raised the figure on the basis of current 15% levies of imports from the European Union and 10% charges on those from the U.K.

Shares of Diageo rose 6.8% by 8:20 a.m. London time (3:20 a.m. ET).

The company said it now expects sales growth in the fiscal year to June 2026 to be similar to that of 2025, and organic operating profit growth to be mid-single-digit, including the impact of tariffs.

Diageo posted organic sales growth of 1.7% for the full year 2025, in line with analyst expectations, and organic volume growth of 0.9%.

The company said it expects to save around $625 million over the next three years under its “Accelerate” cost-cutting program, up from $500 million previously. Interim CEO Nik Jhangiani said the board intends to appoint a new CEO by October following the abrupt departure of CEO Debra Crew last month.

After a relatively quiet day for European earnings, the calendar is packed today. That includes second-quarter reports from oil giant BP and fashion house Hugo Boss.

We’ve also seen results from staffing firm Adecco Group, which posted better than expected second-quarter operating income that was up 6% to 115 million euros ($132.8 million), and said it expected profitability to improve in the second half.

French satellite operator Eutelsat also beat expectations with revenue growth of 1.6% to 1.24 billion euros, driven by growing interest in its satellite internet services from government and corporate customers, even as operating losses widened to 909 million euros from 310 million euros. Read more about Europe’s aspiring challenger to Elon Musk’s satellite operator Starlink here.

Germany’s Fresenius Medical Care fell short of market estimates with adjusted operating income of 476 million euros, citing higher than expected patient outflows amid “elevated” mortality and missed treatments. The firm nonetheless confirmed its full-year guidance after sales and profit both rose.

— Jenni Reid, Jonathan Stayton, Domi Suskova

Britain’s BP posted stronger-than-expected second-quarter profit, following a period of heightened volatility for global oil and gas prices.

The struggling energy major reported underlying replacement cost profit, used as a proxy for net profit, of $2.35 billion for the three months through June. That beat analyst expectations of $1.81 billion, according to an LSEG-compiled consensus.

The results come as BP continues to try to rebuild investor confidence following a protracted period of underperformance relative to its industry peers.

“Inside the upstream, we’ve had tremendous performance, along with record operating efficiency [and] along with starting up five new major projects,” BP CEO Murray Auchincloss told CNBC’s “Squawk Box Europe” following the results.

— Sam Meredith

German fashion house Hugo Boss posted a better-than-feared dip in second quarter sales and maintained its full-year guidance, despite flagging weakness in the key Chinese market.

Group revenues dipped 1% year-on-year on a constant currency basis to 1 billion euros ($1.15 billion) over the three month period, slightly ahead of the 996 million euros forecast by analysts in an LSEG poll.

Quarterly operating profit rose 15% to 81 million euros, in line with estimates.

The suit maker pointed to “subdued” demand in the once lucrative Chinese market, as Asia Pacific sales fell 5%. But it nevertheless maintained its full-year guidance for reported group sales in line with last year’s, at around 4.2 billion to 4.4 billion euros, and for operating profit to grow 5% to 22%.

— Karen Gilchrist

Good morning from London, and welcome to CNBC’s live blog covering all the action and business news in European financial markets on Tuesday.

Futures data from IG suggests a broadly positive open for European indexes, with London’s FTSE 100 seen opening 0.3% higher, France’s CAC 40 up 0.1%, Germany’s DAX up 0.2%, and Italy’s FTSE MIB 0.1% higher.

Investors on Tuesday will be assessing more tariff news after U.S. President Donald Trump announced plans to significantly raise tariffs on Indian exports to the U.S.

“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,” Trump wrote on the social media platform Truth Social.

India responded by saying it was being “targeted” by the U.S. and the European Union over its imports of Russian oil. India markets slipped at the open as investors kept an eye on trade developments between the U.S. and the South Asian nation. Asia-Pacific markets elsewhere traded broadly higher.

U.S. stock futures were slightly higher on Monday night, following a rebound on Wall Street on Monday, as investors followed the latest batch of corporate earnings.

— Holly Ellyatt

Investors will be keeping an eye on earnings from BP, Diageo, DHL, Infineon and Banco BPM. Middle Eastern oil giant Saudi Aramco will also release an earnings update.

French industrial production data is due.

— Holly Ellyatt