European stock markets closed mostly higher in Tuesday trading, with the Stoxx 600 adding 0.4%, Germany's DAX up 0.7%, the UK's FTSE 100 advancing 0.3%, France's CAC shedding 0.1%, and the Swiss Market Index adding 0.5%.

In economic news, Germany's GDP increased 0.3% in Q2 compared with the previous quarter, the country's statistics office said Tuesday.

Germany's business climate Index rose to a seasonally adjusted 88.8 in August, from 86.7 in July, reported Ifo. The current conditions index improved to 88.5 in August from 86.5 in July, while the expectations index rose to 89.1 in August, from 86.8 in July.

In geopolitical news, in a Monday announcement of new economic sanctions against Iran, US Treasury Secretary Scott Bessent said that other countries would need to stop doing business with the Middle Eastern nation or risk being cut out of the dollar-based financial system. He did not identify the countries involved but added that they have a defined timeline to comply with the new directive.

Oil prices were lower Tuesday, with North Sea Brent crude falling 3.6% to $88.62 per barrel.

In corporate news, Equinor plans to boost production outside Norway to 950,000 barrels of oil equivalent per day (boepd) by 2030, while generating $20 billion of free cash flow from 2026 to 2030, said the oil giant's Executive Vice President Philippe Mathieu on Tuesday. Equinor's production outside Norway was 750,000 boepd in Q2, up more than 10% in two years, despite exits from positions in Azerbaijan and Nigeria. Separately, Equinor sees its long-delayed Tanzania liquefied natural gas project as more attractive amid disruptions to energy flows through the Strait of Hormuz, Reuters reported, citing the company. The $42 billion project could provide Asian customers with an alternative source of natural gas that is less exposed to Middle East geopolitical risks, the report said. Equinor shares were down 1.2% in Oslo.

Halliburton said Tuesday it has won a contract from BP to support appraisal work at the Bumerangue field offshore Brazil. The oil services company said the work will include drilling and reservoir evaluation as BP assesses its oil discovery in the deepwater Santos Basin. BP shares shed 1% in London.

UBS is expanding its efforts to offer customers deposits with Middle East lenders to take advantage of higher regional savings rates, Bloomberg reported. The bank recently offered clients schemes to increase returns by placing funds with Qatar National Bank and previously pitched similar proposals utilizing Saudi Arabia's Al Rajhi Bank, the report said. UBS shares rose 0.3% in Switzerland.

Santander and JPMorgan are leading a financing of about $14 billion to $15 billion to back Argentina LNG, a proposed project to liquefy and export Argentina's shale gas reserves, Bloomberg reported. Separately, Santander and Howden are working with Ireland's AIB on a significant risk transfer, or SRT, tied to about 2.5 billion euros ($2.91 billion) in project finance transactions, Bloomberg reported. AIB completed its first significant risk transfer in November 2024, the report said. Santander shares fell 1% in Madrid.

AstraZeneca has priced four tranches of Eurobonds totalling 2.55 billion euros ($2.97 billion), the company said Tuesday. The offering comprised 700 million euros of fixed-rate notes with a coupon of 3.402% maturing in 2030; 600 million euros of fixed-rate notes with a coupon of 3.652% maturing in 2032; 500 million euros of fixed-rate notes with a coupon of 3.923% maturing in 2035; and 750 million euros of fixed-rate notes with a coupon of 4.169% maturing in 2038, the company said. AstraZeneca shares climbed 3% in London.

HSBC has bought a minimum of $3 billion of Indian government bonds since last month, using a pool of funds attracted under a special diaspora dollar deposit program, Bloomberg reported. Over the last couple of months, the UK lender has purchased bonds around the five-year maturity bracket, as it looks for ways to deploy the proceeds it has attracted under the Reserve Bank of India's foreign currency non-resident program, the report said. HSBC shares decreased 0.9% in London.

NatWest has secured approval from the US Federal Reserve to establish a representative office in Stamford, Connecticut, as the UK bank seeks to expand its presence and target current and prospective US clients, media outlets reported Tuesday. The office will market NatWest's products, support US customers and handle back office functions but will not be permitted to take deposits. NatWest already operates a US-licensed broker-dealer in Stamford, according to the reports. NatWest shares added 0.2% in London.

Apollo Global Management, KKR and IFM Investors are the finalists for a majority stake in Associated British Ports, the UK's largest port operator, Bloomberg reported. Canada Pension Plan Investment Board and Omers Administration are looking to sell their combined 64% stake in the business in a deal that values AB Ports at 10 billion British pounds ($13.6 billion), the report said.