San Francisco Frontiers - Stocks diverge with eyes on earnings, trade talks

Negotiations between Washington and key trading partners remained in focus ahead of the August 1 deadline to avoid US President Donald Trump's sky-high tariffs.

While the Trump administration has said that several deals were close, just three have been struck so far.

"Worries over the fate of the EU-US trade deal weighed on investors' minds" said Deutsche Bank managing director Jim Reid.

"The lack of concrete progress has continued to give investors pause," he added.

Frankfurt and Paris stock markets both fell in early afternoon trading.

London was flat and UK gilt yields rose after official data showed that Britain borrowed more than expected in June due to soaring debt interest payments.

Attention also turns this week to earnings from some of the world's biggest names, including Tesla, Google-parent Alphabet, Intel and Coca-Cola.

The companies' guidance will be closely watched as investors try to gauge market sentiment in light of Trump's trade war.

"Expectations for the earnings season include accelerated profit growth for major US technology companies in the second half of the year," said Jochen Stanzl, chief market analyst at CMC Markets.

In Asia, Hong Kong pushed on with its advance Tuesday, hitting its highest close since late 2021.

The index has gained around 25 percent this year thanks to a rally in Chinese tech firms and a fresh flow of cash from mainland investors.

Shanghai also advanced.

Tokyo dipped after an early rally fizzled out as investors returned from a long weekend to news that Prime Minister Shigeru Ishiba's ruling coalition lost its majority in Japan's upper house elections Sunday.

Ishiba's vow to stay in office helped stocks and the yen in opening exchanges but observers warned the government's tenure remained fragile.

That followed a largely positive day on Wall Street, where the S&P 500 and Nasdaq finished at new records Monday.

In company news, shares in British Gas owner Centrica rose over four percent in London after it announced its 15-percent stake in new nuclear power plant Sizewell C.

Premium Swiss chocolate maker Lindt & Sprungli saw its shares shed seven percent after reporting a decline in net profit, despite raising its 2025 sales target.

- Key figures at around 1045 GMT -

London - FTSE 100: FLAT at 9,015.42 points

Paris - CAC 40: DOWN 0.7 percent at 7,740.79

Frankfurt - DAX: DOWN 1.0 percent at 24,064.74

Tokyo - Nikkei 225: DOWN 0.1 percent at 39,774.92 (close)

Hong Kong - Hang Seng Index: UP 0.5 percent at 25,130.03 (close)

Shanghai - Composite: UP 0.6 percent at 3,581.86 (close)

New York - Dow: FLAT at 44,323.07 (close)

Dollar/yen: UP at 147.50 yen from 147.42 yen on Monday

Euro/dollar: UP at $1.1704 from $1.1688

Pound/dollar: DOWN at $1.3483 from $1.3485

Euro/pound: UP at 86.79 pence from 86.68 pence

West Texas Intermediate: DOWN 0.7 percent at $65.47 per barrel

Brent North Sea Crude: DOWN 0.7 percent at $68.73 per barrel

E.Jones--SFF