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Stoxx 600 index.

European stocks closed higher on Tuesday, with the benchmark Stoxx 600 index ending the session up by 1.1%.

Germany’s DAX index led major bourses with a 1.6% gain, while France’s CAC 40 rose 0.8%. The UK’s FTSE 100 set a second straight record close after climbing 0.25%.

—Jenni Reid

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FTSE 100 index.

UK stocks remained in positive territory on Tuesday afternoon, with the blue-chip FTSE 100 index 0.25% higher at 3:50 pm London time, after Bank of England Chief Economist Huw Pill delivered a speech that was perceived by many investors as hawkish.

Equity gains were lower than earlier in the session and lagged Germany’s DAX index, which was up 1.35%, and France’s CAC 40, up 0.7%.

UK stocks had powered ahead during Monday’s session, taking the FTSE 100 to a record close on mounting expectations of a summer rate cut from the BOE.

Pill on Tuesday said that his baseline at the start of March was that “the time for cutting Bank Rate remained some way off.”

“The combination of little news and the passage of time have brought a Bank Rate cut somewhat closer. But the same lack of news gives me no reason to depart from the baseline that I already established,” he said.

The British pound, which fell 0.5% against the US dollar on Monday, clawed back 0.7% on Tuesday.

An aerial view shows a pumpjack operating at an oil well in Gray Horse, Oklahoma, on Sept. 29, 2023.

Chandan Khanna | AFP | Getty Images

US crude oil hit a session low of $80.89 a barrel on Tuesday, the lowest level since late March.

The West Texas Intermediate futures contract for June also dipped below the 50-day moving average of $81.22 a barrel for the first time since early February.

WTI was last trading at $81.51 a barrel, down 39 cents, while the June Brent futures contract was last down 36 cents at $86.64 a barrel.

Traders have prayed down prices after a runup early this month on fears that Iran and Israel were on the brink of war. Those fears have largely dissipated as the bitter enemies have signaled they are not interested in a wider war after trading tit-for-tat strikes this month.

The market was also unconcerned about looming oil sanctions on Iran. The House of Representatives passed legislation over the weekend that would target ports, vessels and refineries that accept Iranian oil. The Senate could take up the legislation this week.

—Spencer Kimball

US stocks opened higher on Tuesday, with Wall Street focused on a fresh slate of upcoming tech earnings.

The S&P 500 added 0.4% shortly after the opening bell, while the Nasdaq Composite gained 0.4%. The Dow Jones Industrial Average climbed 124 points, or 0.3%.

—Brian Evans

Blurred buses pass the Bank of England in the City of London on 7th February 2024 in London, United Kingdom.

Mike Kemp | In Pictures | Getty Images

The Bank of England’s chief economist Huw Pill struck a hawkish note Tuesday, indicating that a forthcoming interest rate cut might not come as soon as expected.

While falling inflation has brought a prospective cut “somewhat closer,” Pill said there was more risk in cutting rates too quickly than too late.

“The combination of little news and the passage of time have brought a Bank Rate cut somewhat closer,” Pill said in a speech to the University’s of Chicago Booth School of Business, according to Reuters.

“But the same lack of news gives me no reason to depart from the baseline,” he said, in reference to a previously stated more restrictive stance.

As recently as Monday, markets had been expecting an initial quarter-point cut from the Bank of England in August.

—Karen Gilchrist

Euro zone business activity expanded in April as growth in the bloc’s services sector offset weakness in manufacturing, new data showed Tuesday.

HCOB’s preliminary composite euro zone purchasing managers’ index, compiled by S&P Global, rose to 51.4 this month, up from 50.3 in March and ahead of the 50.7 anticipated.

Meantime, the UK business sector also showed signs of strength, with S&P Global’s purchasing managers’ index rising to a stronger-than-expected 54 in April, up from 52.8 the previous month.

—Karen Gilchrist

Shares of Associated British Foods rose 9.5% after it raised its outlook and interim dividend amid easing inflationary pressures on its food brands and improved sales at high street retailer Primark.

Meantime, Dutch recruiter Randstad fell 6% following a bigger-than-expected fall in first-quarter earnings as hiring conditions weaken.

—Karen Gilchrist

European stocks opened higher Tuesday, with the benchmark Stoxx 600 index up 0.6% by 8:05 am London time.

The UK’s FTSE 100 climbed 0.5% to hit an all-time intraday high, while France’s CAC 40 was 0.3% higher, and Germany’s DAX up 0.8%.

Novartis said in August that it plans to spin off its generics unit Sandoz to sharpen its focus on its patented prescription medicines.

Bloomberg | Bloomberg | Getty Images

Swiss drugmaker Novartis raised its full-year guidance after reporting better-than-expected first-quarter results led by the success of products including heart failure drug Entresto and psoriasis drug Cosentyx.

The company said 2024 net sales were set to grow by a high-single to low double-digit percentage, while adjusted operating income was expected to grow by a low double-digit to mid-teens percentage.

It previously forecast adjusted operating income to increase by a “high single-digit” percentage and sales growth to rise by a “mid single-digit.”

—Karen Gilchrist

A Renault Scenic electric vehicle (EV) at the Munich Motor Show (IAA) in Munich, Germany, on Tuesday, Sept. 5, 2023.

Bloomberg | Getty Images

French automaker Renault on Tuesday reported a 1.8% uptick in its first-quarter revenue, led by strong performance in its financing business.

The company sold 549,099 units in the three-month period, with revenue totaling 11.7 billion euros ($12.47 billion). That’s slightly above a company-provided consensus of a slight annual drop to 11.49 billion euros.

—Karen Gilchrist

Heightened geopolitical tensions have triggered volatility in crude oil prices, but one strategist is keenly looking for opportunities in the energy sector.

It was among the laggards last year, but things have turned around with many stocks now trading near all-time highs.

Stephen Ellis, energy and utilities strategist at Morningstar, said oil market volatility does present challenges and urged investors to be patient, which “regularly pays off within energy.”

However, he did say there were “selective bargains” in the market currently and revealed five stocks in the energy space he likes right now.

CNBC Pro subscribers can read more here.

—Amala Balakrishner

European markets are set to open in positive territory Wednesday, building on gains seen since the start of the week.

The UK’s FTSE 100 index is expected to open 40 points higher at 8,084, Germany’s DAX up 60 points at 18,201, France’s CAC 20 points higher at 8,130 and Italy’s FTSE MIB up 206 points at 34,331, according to data from IG.

Earnings come from Orange, Air Liquide, Iberdrola, Roche and Heathrow. Data releases include Germany’s Ifo Institute’s survey on business conditions and expectations for April.

—Holly Ellyatt