Europe stocks close slightly higher as investors brace for U.S.-China trade updates

Autos and energy lead Europe markets to higher close

Europe’s Stoxx 600 index struggled for direction Tuesday, but ultimately closed 0.08% higher on a provisional basis.

Investors are still on the edge of their seats for any major announcements from the U.S.-China trade talks, although this appears likely to land later. Wall Street remains similarly in waiting mode.

Autos and oil and gas have been the top performers in Europe, with the sectors both up by around 1.8% — potentially on hopes that the talks will break the tariff stalemate between the world’s largest economies, paving the way for more deals.

It’s been a busy day for U.K. markets, with the FTSE 100 closing just shy of the record high set in March — helped by tailwinds behind housebuilders — and borrowing costs tumbling following signs of a cooling labor market and reduced wage pressures, boosting expectations of rate cuts.

Wednesday will bring an assessment of U.S.-China progress as well as earnings from fashion giant Inditex, owner of Zara. CNBC will be interviewing the chief executives of Mistral, UniCredit and Thales — catch our programming from 6 a.m. in London.

In his first interview since announcing he will step down as chief executive of WPP, Mark Read said AI has spooked investors in the advertising industry.

“I think this AI disruption is another thing that’s sort of unnerving investors, it’s unnerving investors in every industry, and it’s totally disrupting our business,” he told CNBC’s Karen Tso in a London Tech Week interview.

Since taking over from founder Martin Sorrell in 2018, Read has battled a waning share price — down more than 70% from its 2017 peak — macroeconomic headwinds and the rise of AI-enabled marketing, democratizing the space.

Despite the tough environment, Read said he believed he was leaving the business in better shape.

“The company is simpler and stronger ... At the end of the day, marketing is a cyclical business. When times are tough, clients cut,” he said.

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