Stoxx 600, FTSE, DAX, Nokia, ASMI, earnings

European stock markets rose on hopes of the United States and European Union clinching a trade agreement.

The Stoxx Europe 600 index ended the day higher by 1.1%. Regionally, the U.K.’s FTSE 100 was up 0.4%, Germany’s DAX rose by 0.8% and France’s CAC 40 was higher by 1.4%.

Meanwhile, futures for the Stoxx Europe 600 index jumped by 1.8%, according to FactSet data, after the Financial Times reported that the two large trading partners were closing in on a 15% tariff deal.

— Ganesh Rao

Temenos shares have rocketed 21% after the Swiss banking software firm reported better-than-expected quarterly revenue, up 17% year-on-year. Operating profit rose 30% at the company, which said it had won significant new contracts and benefited from ongoing cost savings.

European stocks are still broadly higher in early afternoon deals, with the Stoxx 600 index up 0.95% at 12:45 p.m. in London led by autos, up 3.6%.

The U.K.’s FTSE 100 has pulled back slightly, last up 0.44%, after touching a record intraday high above 9,070 points.

Global markets have been buoyed by news of a U.S.-Japan trade agreement, with attention now on the status of negotiations with the European Union. Read more on that from CNBC’s Sophie Kiderlin here.

— Jenni Reid

The Stoxx Europe Automobiles and Parts index has jumped 4.3% after Japan and the U.S. reached a “massive” trade deal, and President Donald Trump reportedly spoke to dinner guests on Tuesday about EU officials visiting Washington for trade talks.

Leading gains in the tariffs-sensitive sector are Porsche, last seen trading 7.4% higher, Stellantis, up 7%, and Volkswagen, up 6.4%.

— Chloe Taylor

Shares of Swiss fintech firm Temenos popped 21.2% by 10 a.m. in London (5 a.m. ET), taking the company to the top of the Stoxx 600 index.

That came after the banking software company’s Chief Financial Officer Takis Spiliopoulos told Reuters that tariff-related “wobbles” that hampered deal-making earlier this year were over.

The company had earlier raised its full-year earnings before interest and taxes (EBIT) growth guidance to at least 9%, up from a previous forecast of 5%. Earnings per share are now forecast to grow at a rate of 10% to 12% in the current financial year, up from a previously forecast range of 7% to 9%.

— Chloe Taylor

Shares of German software giant SAP are around 2.3% lower after the company reported a 9% year-on-year revenue rise to 9.03 billion euros ($10.6 billion), shy of an LSEG-compiled consensus forecast of 9.08 billion euros. Operating profit came in just ahead of estimates at 2.57 billion euros, up 32% year-on-year.

Europe’s biggest listed firm reiterated its full-year 2025 outlook, despite noting that the “prevailing dynamic environment implies elevated levels of uncertainty and reduced visibility.” SAP also flagged that strength in the euro against the U.S. dollar was having a negative impact on its reported revenue growth figures.

Chief Financial Officer Dominik Asam told CNBC’s “Europe Early Edition” that macroeconomic volatility as a result of U.S. tariff policy had led customers to slow down their decision-making, but that he was taking “some hope” from the Japan trade deal announced Tuesday.

Analysts at Deutsche Bank called growth in SAP’s current cloud backlog “strong” and said it was “continuing to execute very well” amid challenges. Read more here.

Shares of Dutch semiconductor equipment manufacturer ASM International were down 10% by 8:45 a.m. London time (3:45 a.m. ET).

The company reported its second-quarter results after the close on Tuesday, with quarterly bookings coming in at a lower-than-expected 702.5 million euros ($824.4 million).

Analyst estimates compiled by Visible Alpha had shown a consensus expectation of 843 millions euros, news agency Reuters reported.

ASMI said on Tuesday that its order intake had been “lumpy” in the second quarter.

— Chloe Taylor