European stocks were muted on Tuesday morning as traders monitor a slew of earnings reports.
The pan-European Stoxx 600 hovered just below the flatline in early trade, with construction and material stocks getting off to the strongest start with a 0.4% rise, while oil and gas shares slipped 0.6%.
Market players are largely focused on upcoming results from major companies Tuesday. In Europe, Burberry shares jumped 6.5% to the top the Stoxx 600 in early trade, after the British luxury brand reported a pick-up in first-quarter sales driven by new designs from creative chief Riccardo Tisci.
Experian fell 2.6% after its total revenue grew 4% during the first quarter but a decline in U.K. and Ireland revenue kept a lid on performance. Shares of Telenor tumbled 3.4% after the Norwegian telecommunications company said on Tuesday that it expects a decline in earnings for the rest of the year, dented by problems faced at some of its Asian operations.
Citigroup kicked off the earnings season on Wall Street Monday, reporting better-than-expected profit and revenue numbers for the second quarter.
Meanwhile, trade continues to be an area of focus for the market. President Donald Trump said Monday that U.S. tariffs were having a “major effect” on China, following the release of data that showed China’s economy growing at its slowest pace in 27 years.
Elsewhere, in terms of data, the euro zone’s balance of trade for May and July’s economic sentiment figures for Germany and the euro zone are due Tuesday morning.