BNP Paribas reported a one‑third surge in second‑quarter profits as a trading boom and stronger markets lifted results, with revenues rising about 12% year‑on‑year, the bank said Tuesday. The outsize trading performance helped offset softer client activity in other areas and left BNP well ahead of street forecasts.
In corporate moves, UniCredit said it expects to achieve control of Commerzbank as the next step in its expansion strategy, underscoring ongoing consolidation in Europe’s banking sector.
Tech bellwethers delivered a mixed signal to markets. Alphabet’s shares tumbled as much as 3.6% in after‑hours trade despite beating sales estimates, after the company reported negative free cash flow for the first time since going public — a shift the company attributed to heavy spending on AI infrastructure. Alphabet raised its 2026 capital‑expenditure guidance sharply to about $200 billion, a move investors interpreted as a sign of costly investment cycles ahead.
Tesla also disappointed investors, reporting earnings below expectations due to rising expenses even as vehicle sales exceeded forecasts. Meanwhile, TotalEnergies posted a 68% jump in profits, buoyed by higher oil prices and strong refining margins.
Broader data points highlighted cyclical momentum and uneven consumer demand. European car registrations surged 13% in June — the biggest monthly gain since 2023 — driven largely by continued electrification. Nestlé shares fell as much as 7% after sales growth missed market expectations.
Other major companies reporting results Tuesday include Blackstone, Intel and Lockheed Martin, adding further breadth to a heavy corporate calendar.
Fixed‑income and commodity markets added to the tension. German government yields climbed to their highest levels in 15 years as Brent crude surged ahead of the European Central Bank’s policy meeting, reflecting renewed concern over energy‑driven inflationary pressures. Brent traded around $98 a barrel, up roughly 4% on the session.
Equity markets were mixed. European shares fell about 0.8% on the session, weighed by financials and parts of the consumer sector. Mainland China and Japan each rose around 0.5%, while Hong Kong gained roughly 1.5%. U.S. futures pointed to a softer open, down about 0.5%, as investors digested the combination of strong oil prices, hefty corporate capex plans and divergent earnings results.
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