London’s FTSE 100 recovered from early session losses on Tuesday, rising 0.22% by 07:40 GMT as pressure on technology stocks began to ease.
Germany’s DAX gained 0.29% and France’s CAC 40 advanced 0.42%, reflecting a broadly positive mood across European equity markets.
Sterling held relatively steady against the US dollar, with GBP/USD edging 0.05% higher to 1.33051 during the morning session.
Technology stocks had come under pressure after reports indicated China made significant advances in developing home-grown semiconductor manufacturing equipment, weighing on global chipmakers.
Nvidia and AMD both traded lower in pre-market activity, while Asian semiconductor manufacturers Samsung Electronics and SK Hynix fell sharply across regional markets.
Japan’s Nikkei 225 and South Korea’s Kospi posted notable declines, though Australia’s S&P/ASX 200 bucked the trend and ended the session in positive territory.
Geopolitical tensions remained elevated after Yemen’s Houthi movement claimed responsibility for drone attacks targeting Saudi Arabian crude oil supply and transport infrastructure.
Houthi military spokesperson Brigadier General Yahya Saree said the strikes were carried out in response to what the group described as “Saudi enemy drone incursions into Yemeni airspace.”
The Houthis also claimed to have shot down a Saudi Bayraktar Akinci drone over Al-Jawf Governorate on July 26, adding to broader regional instability.
In Washington, President Donald Trump said he was unconcerned by Israeli objections to a proposed sale of F-35 fighter jets to Turkey ahead of talks with Israeli Prime Minister Benjamin Netanyahu.
“Nobody tells me what we should be selling,” Trump said, describing Turkey as “a tremendous ally” during remarks ahead of the diplomatic meeting.
Trump also dismissed the significance of Russian support for Iran, stating, “They have no army, they have no air force, they have no navy.”
Commodity markets were weaker, with Brent crude falling 1.5% to $84.59 a barrel and WTI crude declining 1.4% to $81.40 during the session.
Gold futures dropped 0.64% to $4,050.70 per ounce as investor appetite for safe-haven assets softened slightly alongside the easing in technology sector volatility.
Among UK corporate news, Barclays (LSE: BARC) reported a 17% increase in first-half profit, exceeded market expectations, and announced a £1 billion share buyback supported by strong equities trading and investment banking performance.
Barclays also upgraded its 2026 income guidance, signalling confidence in sustained revenue momentum across its key business divisions for the remainder of the year.
Unilever (LSE: ULVR) delivered second-quarter sales growth ahead of forecasts and raised its outlook for underlying sales growth in 2026 as demand remained resilient across beauty, home care and household products.
BT (LSE: BT.A) revealed its Openreach division faces a proposed intervention from regulator Ofcom over a discounted broadband pricing initiative that the watchdog believes could hinder rival fibre providers.
Man Group (LSE: MAN) announced record assets under management alongside stronger-than-expected first-half client inflows, with heightened market volatility driving increased demand for its investment products.
SSP Group (LSE: SSPG) reaffirmed its full-year outlook after posting solid third-quarter sales growth, with strong trading in the UK and Ireland helping to offset weaker demand in Middle East-affected markets.
Unite Group (LSE: UTG) reported an 8% decline in adjusted first-half earnings partly reflecting acquisition-related costs, but maintained its full-year guidance as it continued to optimise its property portfolio.