European markets showed divergent performance Tuesday as investors weighed corporate earnings against renewed global optimism. Germany’s DAX dipped 0.2% while France’s CAC 40 gained 0.3%, with energy giant BP slashing its buyback program after reporting a $3.4 billion quarterly loss, reversing from last year’s $1.2 billion profit.

Earnings dominated the session, with Philips posting €5.10 billion in Q4 sales on strong medical device demand. Kering’s sales fell less than feared under new CEO Luca de Meo, while Barclays boosted profits 12% through cost-cutting. The mixed results came as global indexes rebounded, with Japan’s Nikkei hitting record highs after Prime Minister Takaichi’s election win.

Political risks simmered as UK Prime Minister Keir Starmer faced resignation calls over a controversial ambassador appointment. Analysts warned a leadership change could weaken the pound and lift gilt yields. Brent crude edged down to $68.86 amid ongoing Middle East supply risks, with 20% of global oil shipments traversing Iran’s Strait of Hormuz.