European stock markets give back gains, focus on financial reports and tariffs.

European stock markets gave up a slight early morning gain and stabilized as investors welcomed another day of intensive corporate earnings releases and kept an eye on the latest tariff news. The STOXX Europe 600 Index saw little change. The index had risen by 0.4% in early trading. Energy stocks led the gains, following a slight rebound in oil prices after four consecutive days of decline. Healthcare stocks performed the worst, with Bayer dragging down the sector as its stock price fell by 5.1% due to lower-than-expected revenue from soybean seeds and pesticide businesses. Siemens Energy rose as the German company said it is likely to meet the upper end of its annual performance guidance; real estate company Vonovia also saw its stock price rise after raising its annual outlook. Personal care product manufacturer Beiersdorf saw its stock price fall as its reported growth was lower than expected. Dutch bank ING fell by 7.3% as its net interest income fell short of expectations. Danish pharmaceutical company Novo Nordisk's stock price dropped by 0.8% as its sales growth was the slowest in four years. "Despite some companies announcing strong quarterly results, market sentiment remains fragile as investors assess the actual impact of tariffs on profitability and supply chains," said Ulrich Urban, Head of Multi-Asset Strategies and Research at Berenberg Bank. "However, the solid fundamentals of high-quality European companies and the expectation of a Federal Reserve interest rate cut are helping to stabilize risk appetite." Meanwhile, U.S. President Donald Trump announced that he will impose tariffs on countries purchasing energy from Russia, and explicitly stated that tariffs on semiconductor and pharmaceutical imports will be announced "in about a week." In other stock news, German healthcare group Fresenius saw its stock price rise after raising its sales expectations. Zalando's stock price rose by 3.6% as the company narrowed its revenue forecast range. Major European stock indices rose by 6.7% in 2025. Barclays strategists recommend buying European stocks on dips in the absence of an economic recession, believing that with the peak of tariff uncertainty behind us, European stock markets are poised to reach historic highs by the end of the year.