Investing.com - European equity indices traded marginally higher Tuesday, as investors absorbed a flood of quarterly corporate earnings amid continued trade uncertainty.

At 03:05 ET (07:05 GMT), the DAX index in Germany climbed 0.5%, the CAC 40 in France gained 0.1% and the FTSE 100 in the U.K. rose 0.1%.

Quarterly corporate earnings

The pan-European Stoxx 600 index has closed higher for the last five sessions and has returned to a year-to-date gain despite sharp selling in March and early April.

The new quarterly earnings season is now in full swing, and these results could well determine the markets’ mood, with companies having to account for the new world under U.S. President Donald Trump’s tariffs.

HSBC (LON: HSBA ) said its stake in Bank of Communications will drop to about 16% from 19.03%, with the banking giant booking a loss of up to $1.6 billion as a result of the Chinese bank’s fundraising by private placement of shares.

Deutsche Bank (ETR: DBKGn ) posted a 39% rise in first-quarter profit after its global investment banking division generated a big increase in revenue in bond and currency trading during volatile markets.

BP (NYSE: BP ) reported underlying replacement cost profit, the oil major’s definition of net income, of $1.38 billion in the first quarter, a 49% drop following a recent strategic reset and a slump in crude prices.

Danish brewer Carlsberg (CSE: CARLb ) reported first-quarter sales slightly below expectations and kept its outlook for the full year unchanged.

Adidas (OTC: ADDYY ) confirmed its 2025 guidance, but the German sportswear maker said it expected the planned higher tariffs on imports into the United States to eventually raise the costs of all its products for the market.

Lufthansa (ETR: LHAG ) confirmed its operating result forecast for 2025, but the German airline warned that it was closely monitoring the possible impact of trade tensions with the United States.

Auto tariffs to be softened - WSJ

The imposition of tariffs have roiled global markets this month, threatening U.S. growth, productivity and dynamism, but sentiment has improved recently as President Trump has walked back some of these duties.

The Wall Street Journal reported that Trump is expected to soften the blow of his automotive tariffs by preventing duties from stacking on top of other tariffs he has imposed, while also scaling back some duties on foreign parts.

The move will mean that U.S. automakers paying Trump’s automotive tariffs will not be subject to other duties, such as those on steel and aluminum, the WSJ report said, with the move also being retroactive.

German consumer sentiment improves

German consumer sentiment improved further heading into May, according to data released earlier Tuesday, with the latest GfK consumer sentiment index coming in at -20.6 points, up from a slightly revised -24.3 points the month before.

Eurozone confidence readings are also due later in the session, while across the pond investors will be keeping an eye on the U.S. job openings data for March.

Crude prices slip lower

Oil prices fell Tuesday as traders continued to fret over the economic outlook, given the ongoing global trade war, as well as scheduled increased supply.

At 03:05 ET, Brent futures dropped 1.1% to $64.11 a barrel, and U.S. West Texas Intermediate crude futures fell 1.1% to $61.36 a barrel.

Oil was also pressured by Russia unexpectedly announcing a three-day ceasefire with Ukraine, which could help pave a path towards a bigger agreement.

An OPEC+ meeting is also scheduled for next week, where the cartel is widely expected to increase production for a second consecutive month.