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European stocks close higher as investors monitor earnings; Burberry shares jump 14%

Key Points
  • In terms of data, the euro zone's balance of trade for May came in at a surplus of 23 billion euros ($25.85 billion).
  • Stateside, corporate figures will also be on traders' minds with J.P. Morgan, Wells Fargo and Johnson & Johnson all set to report.

European stocks closed higher on Tuesday as traders monitored a slew of earnings reports.

European Markets: FTSE, GDAXI, FCHI, IBEX

The pan-European Stoxx 600 was up 0.3% at the end of the session, with construction and material stocks, up 1.65%, leading the gains.

Sterling slipped to around $1.24 as fears of a no-deal Brexit rose following comments from potential Conservative Party leader, Boris Johnson. The dollar also strengthened after better-than-expected U.S. retail sales data.

Market players are largely focused on upcoming results from major companies Tuesday. In Europe, Burberry shares soared more than 14% to top the Stoxx 600 after the British luxury brand reported a pick-up in first-quarter sales driven by new designs from creative chief Riccardo Tisci.

Shares of Swedish power tools giant Husqvarna dropped 5% to the bottom of the European blue chip index after its CEO said its full-year 2019 operating margin would be at the lower end of the previous guidance range due to weak sales early in the second quarter.

Fiat Chrysler stock was down 3% at the closing bell after it was initiated at a "sell" rating by Goldman Sachs.

Stateside, corporate figures will also be on traders' minds with J.P. Morgan, Wells Fargo and Johnson & Johnson all set to report.

Citigroup kicked off the earnings season on Wall Street Monday, reporting better-than-expected profit and revenue numbers for the second quarter.

Shares of Ryanair were up by 2.6% on Tuesday, despite the airline halving its 2020 passenger growth outlook on the back of delayed deliveries of Boeing's 737 Max jet.

Meanwhile, trade continues to be an area of focus for the market. President Donald Trump said Monday that U.S. tariffs were having a "major effect" on China, following the release of data that showed China's economy growing at its slowest pace in 27 years.

Elsewhere, in terms of data, the euro zone's balance of trade for May came in at a surplus of 23 billion euros ($25.85 billion). Seasonally adjusted exports rose by 1.4% while imports were down 1%. The figures provide fresh indication that the currency area's economy is holding steady amid global trade tensions.

July's economic sentiment figures for Germany came in at -24.5 versus -22.3 expectations, compounding the economic uncertainty shrouding Europe's largest economy.