European stocks fell for the third consecutive day as investors assessed earnings.

European markets continued their downward trend for the third consecutive day, as investors processed earnings reports from major firms across the continent.

The Stoxx Europe 600 index dropped by 0.5%. In more specific terms, Germany’s DAX fell by 1.2%, while France’s CAC 40 saw a decline of 0.7%. The UK’s FTSE 100 and Italy’s MIB managed to close relatively unchanged.

Defense stocks in Europe suffered significant losses this afternoon, with the Stoxx Europe Aerospace and Defense Index down by 2.5% by the end of the trading session.

Swedish defense contractor Mildef led the decline, while German arms manufacturer Rheinmetall saw its shares plummet by 3.7% after cutting previous losses.

At 11:22 am in London, most sectors were in the red, particularly technology stocks, which fell by 1.4%, and chemicals, which saw a drop of 1.8%. The overall Stoxx 600 index recorded a loss of 0.57%.

We are also seeing some earnings reports dampening market spirits. French biotech firm Sartorius Stedim reported a drop of over 10% due to year-on-year profit decreases, even though it still posted 128.9 million euros in EBIT profits. Similarly, Swiss chocolatier Lindt & Sprüngli experienced a 7% dip after missing analyst expectations, despite an optimistic sales forecast.

Uncertainty around tariffs continues to stifle the investment atmosphere. It seems that the European Union is gearing up to respond to a potential 30% tariff threat from the White House with an “anti-coercive device.”

AstraZeneca announced its plan to invest $50 billion in the U.S. by 2030, aiming to strengthen its manufacturing and research capabilities. This move represents a significant commitment from the pharmaceutical sector amid ongoing challenges with U.S. trade tariffs.

Centrica’s shares rose about 4.5% after the company confirmed a 15% stake acquisition in the £1.3 billion investment for the Sizewell C nuclear plant in Suffolk. Analysts from Jefferies commented that the terms appear “attractive,” pointing out the company’s solid safeguards against construction delays and cost overruns.

Centrica projects a return of 10.8% during the construction phase, and their anticipated share could reach £3 billion by the time commercial operations commence in the 2030s.

This morning, UK government bonds (Gilts) saw a decline following reports of a surprising £20.7 billion borrowing increase in June, above the £16.5 billion that economists had predicted. It marks one of the highest borrowing figures for June since records began in 1993.

The UK’s fiscal deficit reached £16.3 billion, the third-highest level recorded for June since 1997. While government borrowing remains within forecasted limits, the unexpected rise adds pressure on Finance Minister Rachel Reeves.

UK utility company Centrica has announced a phased investment of £1.3 billion for a 15% stake in the Sizewell C nuclear project, marking the UK’s most significant nuclear power initiative in decades. On Tuesday, the government provided its final approval for the venture, which contributed to a 4% rise in Centrica’s shares.

In other earnings news, Norsk Hydro reported a 33% increase in core profits, thanks to higher aluminum and energy prices, exceeding expectations with a revenue of 7.8 billion Norwegian kroner ($766 million).

On the flip side, Julius Baer experienced a disappointing 35% drop in first-half net profit, totaling 295 million Swiss francs ($369.5 million), largely due to prior disclosures regarding a rise in loan clauses and asset management sales.

Good morning from London, and welcome to coverage of the European financial markets this Tuesday. Futures indicate a shaky start for European indices, with signs of decline in CAC40 and DAX.

Markets were already under pressure following U.S. tariffs proposed by President Trump, which have left European policymakers considering potential retaliatory actions.

In U.S. markets, stock futures showed little movement early Tuesday after the S&P 500 and Nasdaq Composite reached new highs during Monday’s session. The S&P gained approximately 0.1%, while the Nasdaq rose nearly 0.4%, propelled by strong earnings reports. Meanwhile, the Dow lagged behind.

In Asia, stock performance was mixed, although Japanese shares noted an uptick after political shifts influenced the Senate’s dynamics.