European stock markets rebounded on Tuesday, as strong corporate earnings helped ease concerns over the fragile ceasefire agreement in the Middle East.

The Stoxx 600 index rose 0.7% in London. Anheuser-Busch InBev was among the top performers, climbing 9% and marking its largest gain since 2021. The brewer reported its first sales growth since 2023, driven by increased demand for its best-selling beers, Michelob and Corona, in several key markets.

HSBC Holdings PLC, which holds a 2% weighting in the Stoxx 600, fell 5.7% after reporting lower-than-expected first-quarter profits. Rising costs and impairments offset strong fee income performance. UniCredit rose 5.9%, posting record quarterly profits as revenue, fees, and trading income all exceeded expectations.

The rebound in European markets remains fragile, as ongoing tensions between the U.S. and Iran continue to keep oil prices elevated, with Brent crude trading around $110 per barrel. EU Economy Commissioner Valdis Dombrovskis warned that rising energy prices are weighing on economic growth, stating that the EU is facing a "stagflation shock."