Berliner Boersenzeitung - Markets mixed as investors eye earnings and Trump tariffs

Wall Street's Dow and S&P 500 indices rose amid of a series of profit reports from General Motors, Tesla and others that promise clues to the impact of tariffs so far, following a record S&P finish Monday.

European markets declined, as the August 1 date looms.

"European markets have been getting increasingly jittery as the deadline approaches," said David Morrison, senior market analyst at Trade Nation. "With little sign of progress so far, investors are preparing for possible tariff retaliation from the EU."

US Treasury Secretary Scott Bessent said meanwhile he would meet his Chinese counterparts in Stockholm next week for tariff talks, as a separate mid-August deadline approaches for levies on China to snap back to steeper levels.

- Big earnings reports -

Closely-watched earnings loomed from some of the world's biggest names, including Tesla, Google parent Alphabet, Intel and Coca-Cola.

US auto giant General Motors reported a 35-percent plunge in second-quarter profits Tuesday following a $1.1-billion hit from US tariffs, but confirmed its full-year forecast.

Its shares fell more than three percent in early trading.

Elsewhere, "expectations for the earnings season include accelerated profit growth for major US technology companies in the second half of the year," said Jochen Stanzl, chief market analyst at CMC Markets.

British pharmaceutical giant AstraZeneca said Tuesday it would invest $50 billion in the United States by 2030 amid Trump's threats to impose tariffs on the sector.

A weakened dollar has boosted US companies receiving payments in stronger currencies abroad -- "a turbocharger" for their earnings, according to Stephen Innes, managing partner at SPI Asset Management.

Investment adviser Christopher Dembik at Pictet Asset Management said European companies reporting over coming days were conversely set to be hit by the effect of a stronger euro.

Earlier in Asia, Hong Kong hit its highest close since late 2021. Its index has gained around 25 percent this year thanks to a rally in Chinese tech firms and a fresh flow of cash from mainland investors.

Tokyo dipped following an earlier rally after the ruling coalition lost its upper-house majority as observers warned the government's tenure remained fragile.

- Fed chief speech -

Traders were also looking ahead to a speech Tuesday by US Federal Reserve Chair Jerome Powell, ahead of the Fed's monetary policy meeting on July 29 and 30, analyst Morrison said.

Powell has come under pressure from Trump to quit, with the president angry at the Fed for not lowering interest rates in response to recent turbulence -- but the central bank is expected to keep them on hold until September.

Bessent said Tuesday he did not see a reason for Powell to resign "right now".

- Key figures at around 1345 GMT -

New York - Dow: UP 0.2 percent at 44,403.11

New York - S&P 500: UP 0.1 percent at 6,310.31

New York - Nasdaq Composite: DOWN 0.1 percent at 20,944.43 (close)

London - FTSE 100: DOWN 0.1 percent at 9,017.19 points

Paris - CAC 40: DOWN 0.5 percent at 7,759.82

Frankfurt - DAX: DOWN 0.8 percent at 24,105.01

Tokyo - Nikkei 225: DOWN 0.1 percent at 39,774.92 (close)

Hong Kong - Hang Seng Index: UP 0.5 percent at 25,130.03 (close)

Shanghai - Composite: UP 0.6 percent at 3,581.86 (close)

Dollar/yen: DOWN at 146.73 yen from 147.42 yen on Monday

Euro/dollar: UP at $1.1692 from $1.1688

Pound/dollar: DOWN at $1.3480 from $1.3485

Euro/pound: UP at 86.74 pence from 86.68 pence

Brent North Sea Crude: DOWN 0.8 percent at $68.69 per barrel

West Texas Intermediate: DOWN 0.8 percent at $65.44 per barrel

(K.Lüdke--BBZ)