European Shares Steady Amid Energy Uncertainty and Strong Earnings

European shares remained near record levels, with optimism from strong earnings offset by concerns over energy supply through the Strait of Hormuz. The pan-European STOXX 600 index was nearly unchanged as investors weighed corporate results against ongoing geopolitical risks in the Middle East, while key data awaited assessment.

European shares saw little movement on Tuesday, staying close to record highs due to optimism about a strong earnings season, which helped offset worries about the uncertain energy supply through the Strait of Hormuz. The pan-European STOXX 600 held steady at 660.51 points, near its all-time high.

Steve Sosnick, chief market analyst at Interactive Brokers, commented on the sustainability of earnings momentum amid geopolitical risks. LSEG's data projects a 22% rise in earnings for the second quarter, excluding energy, with growth at 11.5%. Oil saw a 1.2% price firming, with talks between Iran and Oman showing signs of progress.

Concerns over Hormuz-related disruptions affecting energy flow have kept risk appetite cautious. The energy sector rose by 1.7%, and tech shares increased by 1.1%. Meanwhile, European markets are awaiting euro zone employment, GDP data, and U.S. consumer price numbers to determine future interest rate directions.