European shares rise on positive earnings bump; focus on Mideast tensions

Tue, 05th May 2026 17:26

* Anheuser-Busch InBev soars on quarterly sales, profit beat

* HSBC drops after $400-million loss weighs on ⁠profit

* Intertek jumps after EQT sweetens bid to $12 billion (Updates after markets close)

May 5 (Reuters) - European shares recovered modestly on Tuesday after slumping in the previous session as a ‌rally in technology stocks and a slate of upbeat corporate earnings provided support, though signs of an escalation in U.S.-Iran tensions tempered gains.

The ⁠pan-European STOXX 600 closed up at 0.7% at 609.72 points, after ⁠posting its biggest drop in a month on Monday.

Major regional bourses mirrored gains, except for the UK's FTSE 100, which was down 1.4% as London-listed lender HSBC dropped 6.2% after reporting an unexpected $400-million loss linked to a fraud case in Britain that resulted in first-quarter profit coming in below estimates.

The ‌technology sector advanced 2.4%, leading gains among the major STOXX sectors, with chip stocks including ASML and ASMI among the top boosts, tracking a semiconductor rally on Wall Street.

Anheuser-Busch InBev advanced 9.3% after the Belgian brewer posted quarterly sales and profits well above forecast, while UniCredit added 5.9% after the Italian lender posted its highest quarterly profit on record and raised its full-year forecast.

UniCredit also launched a takeover offer for Commerzbank despite strong German opposition. The eurozone bank sector ‌rose 1.9%.

"Corporate earnings have been relatively supportive ... if companies are still making money then that's going to keep the mood buoyant," said Fiona Cincotta, senior market analyst ‌at City Index.

Meanwhile, the United Arab Emirates said it was under attack from Iranian missiles and drones, even as Washington said a shaky ceasefire was intact despite an exchange of fire the previous day as U.S. forces attempted to force open the Strait of Hormuz.

"As long as the Middle East uncertainties continue and energy prices remain high, European stocks that are more cyclical ‌by nature are more endangered than their U.S. peers," said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.

With oil prices holding comfortably above the $110 a barrel mark as the Strait remains choked, high oil prices are weighing on heavily energy-dependent Europe, ⁠stoking inflation ⁠fears and fuelling expectations of more than two rate hikes by the European Central ‌Bank this year.

European equities have had a slow recovery, compared to Wall Street, with the STOXX 600 still down more than 3% from its pre-war February levels, while the S&P 500 has rebounded sharply and hit all-time highs.

Among other movers, Rheinmetall ‌was up 3.4%. The German defence group's preliminary results showed quarterly revenue below analyst expectations.

Intertek soared 6% after Swedish private equity firm EQT AB raised its bid to buy the product-testing company to about 8.93 billion pounds ($12 billion).