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European Stocks Close Higher in Tuesday Trading; Investors Await ECB Rate Decision

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The European markets closed higher Tuesday as tech, bank, and mining stocks rallied, while investors look ahead to the European Central Bank's interest rate decision on Thursday. The ECB Watch Tool forecasts an 8% chance the central bank will boost rates to 2.50% from 2.25%.

The Stoxx Europe rose 0.5%, Germany's DAX gained 0.6%, the FTSE 100 increased 0.6%, France's CAC edged 0.1% higher, and the Swiss Market Index ended the session up 0.2%.

In corporate news, Novartis reported Q2 core earnings Tuesday of $2.41 per share, down from $2.42 a year earlier. Analysts polled by FactSet expected $2.21.

Net sales for the quarter ended June 30 were $14.41 billion, compared with $14.05 billion a year earlier. Analysts surveyed by FactSet expected $14.15 billion.

Shares of the Swiss pharmaceutical company gained 2.1% in Zurich.

Novo Nordisk said Tuesday it filed a lawsuit against Eli Lilly, alleging the drugmaker's advertising for Zepbound and Mounjaro violates federal and state false advertising and unfair competition laws.

Novo Nordisk said Lilly's ads compare Zepbound and Mounjaro with lower doses of Wegovy and Ozempic while omitting information about higher-dose versions of the semaglutide drugs, making the ads misleading. The company said it is seeking a permanent injunction to stop the advertising and require Lilly to run corrective ads.

Shares of the Danish pharmaceutical company fell 1.2% in Copenhagen.

TotalEnergies and Eni are among the international partners Abu Dhabi National Oil, or ADNOC, will work with to develop the Umm Shaif Gas Cap in Abu Dhabi, as it made a $6.2 billion final investment decision on the project, ADNOC said Tuesday.

ADNOC expects the investment decision to unlock more than 600 million standard cubic feet per day of natural gas and associated liquids, with production targeted for 2030.

Shares of TotalEnergies gained 2% in Paris, while Eni shares rose 1.1% in Milan.

Diageo Chair Sir John Manzoni is planning a board shake-up to add drinks industry expertise as Chief Executive Dave Lewis leads the company's turnaround, the Financial Times reported Tuesday, citing people familiar with the matter.

Manzoni is seeking directors with experience in the drinks industry to strengthen board oversight as Diageo navigates weak spirits demand, the report said.

A Diageo spokesperson said the board "represents relevant consumer industry experience," adding that Manzoni "is supportive of the current board, but like any chair, he is always looking to strengthen the appropriate mix of backgrounds and skill sets, in order to drive returns for shareholders."

Shares of the alcoholic beverage company were off 0.3% in London.

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Asia Markets

Update: US Equity Indexes Fall, Crude Oil Rises After Trump Warns More Strikes on Iran Amid Risk to Saudi Arabian Supplies

(Updates with index/price moves, macroeconomic data, and company/geopolitical news from the first paragraph.)US equity indexes fell while crude oil prices rose as President Donald Trump signaled more attacks on Iran amid threats from the Tehran-backed Houthi group to Saudi Arabian crude oil supplies.The Nasdaq slipped less than 0.1% to 25,508.07 on Monday, giving up intraday gains of more than 1%. The S&P 500 fell 0.2% to 7,443.28 after trading in positive territory earlier in the session. The Dow Jones Industrial Average slid 0.6% to 51,839.26, ending the day close to the session low.Health care, materials, and industrials led decliners. Communication services, energy, and technology were the only gainers.President Donald Trump warned Iran "will pay" for three US troop deaths over the past few days, CNN reported. The US is increasing the number of fighter jets in the Middle East as Trump considers how to proceed in the fight against Iran, CNN cited an official.The US military strategy seems to be to attack Iran's offensive and defensive assets until it surrenders its claims on the Strait of Hormuz, according to a Macquarie note. "As for the US's long-term strategic plans, it is clear that they are about diminishing reliance on the Strait over time, by supporting the build-out of alternative oil transportation modalities."Meanwhile, the Tehran-backed Houthi group in Yemen said Monday they were imposing a naval blockade on Saudi Arabia, Reuters reported. The full closure of the Bab el-Mandeb strait would reduce global oil supply by 7% as it would leave most of Saudi oil exports unable to leave the region, the news report said. The disruption would add to the reduction in oil flows from the war, which has already cut shipments by 10% of global supply, it added.The front-month US West Texas Intermediate rose 0.6% to $83.01 a barrel, while global benchmark North Sea Brent climbed 0.9% to $88.88 a barrel, after both crude types traded lower earlier in the session.Most US Treasury yields rose, with the 10-year advancing 5.3 basis points to 4.59%. The two-year jumped 3.9 basis points to 4.21%.In precious metal markets, gold futures slipped 0.2% to $4,013.5, while silver futures climbed 1.3% to $57.06.In economic news, the Conference Board's measure of leading indicators declined by 0.2% in June, larger than the 0.1% decrease expected in a Bloomberg-compiled survey, following a 0.1% increase in May."Consumer spending is weakening, but strong business investment related to AI is expected to support economic activity while inflation continues to improve," said Justyna Zabinska-La Monica, Senior Manager of Business Cycle Indicators. "The Conference Board raised its forecast from 1.8% to 1.9% year-over-year GDP growth for 2026."In company news, Alphabet's (GOOG, GOOGL) Google is working on a new server chip that will allow it to serve its AI models to users more efficiently, The Information reported Monday, citing two people with direct knowledge of the matter. Shares of Google's parent rose 1.5%.

Dow JonesNasdaq CompositeS&P 500$GOOG$GOOGL
Asia Markets

Update: Communication Services, Technology Help Lift Nasdaq and S&P 500; Crude Oil Mixed as Iran Ally Threatens Saudi Supply

(Updates with index/price moves, macroeconomic data and company/geopolitical news from the first paragraph.)US equity indexes traded mixed, with communication services and technology sectors helping lift the Nasdaq Composite and the S&P 500.The Nasdaq rose 0.5% to 25,639.2, with the S&P 500 up 0.2% to 7,468.9 after midday Monday. The price-weighted Dow Jones Industrial Average, which is home to old economy sectors, fell 0.4% to 51,954.8.Consumer staples, utilities, and materials led decliners. Energy was among the trio of gainers as investors weighed geopolitical developments.US Secretary of State Marco Rubio said Sunday night the US "remains open" to talks despite the weekend's violence, and an Iranian official said their side was similarly open to discussions, CNN reported.Iranian Interior Minister Eskandar Momeni is heading a high-level delegation to neighboring Pakistan at the invitation of his Pakistani counterpart, news reports said Monday. The trip comes after Iran's Foreign Ministry announced mediators continue to exchange proposals to get peace talks back on track after nearly two weeks of bombardment.The front-month US West Texas Intermediate slipped 0.2% to $82.35 a barrel, while global benchmark North Sea Brent edged up 0.2% to $88.29 a barrel.In precious metal markets, gold futures slipped 0.2% to $4,013.5, while silver futures climbed 1.3% to $57.06.Meanwhile, Yemen's Iran-aligned Houthis said on Monday they were imposing a naval blockade on Saudi Arabia, a move that widens the threat to global energy supplies and trade beyond the Gulf, Reuters reported.Most US Treasury yields rose, with the 10-year soaring 6.3 basis points to 4.6%. The two-year surged 5.5 basis points to 4.23%.In economic news, the Conference Board's measure of leading indicators declined by 0.2% in June, larger than the 0.1% decrease expected in a Bloomberg-compiled survey, following a 0.1% increase in May."Consumer spending is weakening, but strong business investment related to AI is expected to support economic activity while inflation continues to improve," said Justyna Zabinska-La Monica, Senior Manager of Business Cycle Indicators. "The Conference Board raised its forecast from 1.8% to 1.9% year-over-year GDP growth for 2026."In company news, Alphabet's (GOOG, GOOGL) Google is working on a new server chip that will allow it to serve its AI models to users more efficiently, The Information reported Monday, citing two people with direct knowledge of the matter. Shares of Google's parent rose 2.3% intraday.Barclays upgraded Lumentum (LITE) to overweight from equalweight, with a price target of $1,000. Shares of Lumentum traded 7.2% higher intraday, the top gainer on the S&P 500 and the Nasdaq.

Dow JonesNasdaq CompositeS&P 500$GOOG$GOOGL$LITE
Asia Markets

Exchange-Traded Funds, US Equities Mixed After Midday

Broad Market IndicatorsBroad-market exchange-traded fund IWM fell and IVV rose. Actively traded Invesco QQQ Trust (QQQ) added 0.7%.US equity indexes traded mixed, with communication services and technology sectors helping lift the Nasdaq Composite and the S&P 500.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each added 1%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) gained 0.7%; iShares US Technology ETF (IYW) rose 0.8%, and iShares Expanded Tech Sector ETF (IGM) was up 1.2%.The State Street SPDR S&P Semiconductor (XSD) rose 1.4%, and iShares Semiconductor (SOXX) gained 1.7%.FinancialThe State Street Financial Select Sector SPDR (XLF) fell 0.3%. Direxion Daily Financial Bull 3X Shares (FAS) declined 0.5%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), advanced 0.8%.CommoditiesCrude oil rose 0.3%, and the United States Oil Fund (USO) added 0.5%. Natural gas dropped 2.2%, and the United States Natural Gas Fund (UNG) eased 2.1%.Gold on Comex fell 0.2%, and the State Street SPDR Gold Shares (GLD) slipped 0.1%. Silver added 1.3%, and iShares Silver Trust (SLV) gained 1.4%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) fell 0.5%. The Vanguard Consumer Staples ETF (VDC) dropped 0.6%, and iShares Dow Jones US Consumer Goods (IYK) lost 0.5%.The State Street Consumer Discretionary Select Sector SPDR (XLY) fell 0.5%. VanEck Retail ETF (RTH) declined 0.3%, and the State Street SPDR S&P Retail (XRT) was down 0.2%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) and iShares US Healthcare (IYH) each fell 0.5%, and Vanguard Health Care ETF (VHT) declined 0.5%. IShares Biotechnology ETF (IBB) shed 0.7%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) eased 0.5%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were lower as well.CryptocurrencyIn midday activity, bitcoin (BTC-USD) rose 1.5%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) added 2%, ProShares Ether ETF (EETH) was up 2.9%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 1.4% higher.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH