European stocks traded lower on Tuesday, with the STOXX 50 slipping 0.1% and the STOXX 600 declining 0.3%, following gains of 1% and 0.8%, respectively, in the previous session. Investors assessed fresh corporate earnings while awaiting key central bank policy decisions this week, including those from the Fed and the ECB. HSBC plunged more than 6% after reporting disappointing revenue, leading the declines. Other notable laggards included Safran (-1.4%), Nestle (-1%) and Inditex (-0.9%). On the upside, Novartis gained 3% after beating earnings expectations and raising its full-year guidance. NXP Semiconductors advanced 4.6% ahead of its quarterly results, while Siemens Energy rose 1% and Rio Tinto added 1.6%.

The consumer confidence indicator in France fell to 80 in October 2026, below expectations and September’s 85, reaching its lowest level since June 2013. The decline comes amid rising French bond yields, fiscal uncertainty over austerity measures and protests over the cost of living. Consumers became more pessimistic about their expected (-24 vs -15 in September) and their past (-32 vs -26) financial situation. Major purchase sentiment weakened to -41 from -37, while the opportunity to save declined to 37 from 43 and expected saving capacity fell to 12 from 15. Meanwhile, unemployment expectations rose to 61 from 56, while sentiment toward France’s future standard of living deteriorated to -67 from -61. The assessment of past living standards fell to -85 from -82, its lowest level since the survey began in October 1972. The savings climate index declined to 118 from 120. Perceptions of past price increases rose to 42 from 34, while inflation expectations improved to -7 from -9.

Turkey’s seasonally adjusted unemployment rate rose to 8.4% in September 2026 from an upwardly revised 7.9% in the previous month. This was the highest jobless rate since February, as the number of unemployed individuals increased by 198,000 to 2.97 million. By gender, the jobless rate stood at 6.9% for men and 11.3% for women. Meanwhile, the employment rate edged down to 48.3% from 48.4%, as the number of employed persons fell by 49,000 to 32.45 million. The labor force participation rate inched up to 52.7% from 52.6% in the previous month, with the labor force increasing by 149,000 to 35.41 million. Among youth aged 15–24, the unemployment rate increased to 14.8% from 13.2%, with rates of 10.4% for men and 23.3% for women. Average weekly actual working hours stood at 42.4 hours in September, down by 0.1 hours from the previous month.

China’s industrial profits rose 15.5% year-on-year to CNY 6.03 trillion in the first nine months of 2026, easing slightly from a 15.7% increase in the January-August period. Growth remained supported by high-tech and AI-related manufacturing and electronic equipment, although subdued domestic demand continued to weigh on some industries. Profits at state-owned enterprises increased 13.1% to CNY 1.94 trillion, while joint-stock companies posted a 20.8% gain to CNY 4.67 trillion. Private firms’ profits rose 8.7% to CNY 1.51 trillion. By sector, mining remained the main driver, with profits surging 38.2%, followed by manufacturing (17.0%), while utilities fell 14.3%. Among industries, the strongest gains were seen in computers and communications (103.8%), non-ferrous metal smelting and rolling (79.7%), coal mining (57.0%), and chemicals (49.2%). In September alone, industrial profits grew 14.4% yoy, accelerating sharply from 4.2% in August and marking the strongest rise since June.

UK shop price inflation rose to 2.1% year-on-year in October 2026 from 1.4% in September, marking the fastest increase since February 2024 and exceeding forecasts of 1.6%. Food price inflation accelerated to 2.9% from 2.5%, its highest since April, while ambient food inflation climbed to 3.2% from 2.2%, the highest since September 2025. Fresh food inflation held at 2.6%, while non-food inflation rose to 1.7% from 0.8%, its highest since December 2023, driven by furniture, flooring and home improvement goods. The British Retail Consortium warned that retailers face rising transport, energy, employment and packaging costs, urging Finance Minister John Healey to lower property and employment costs in the upcoming budget. Separately, UK consumer price inflation reached 3.5% in September, an 11-month high. BOE Governor Andrew Bailey said businesses had absorbed higher energy costs linked to the US-Iran war, while the Food and Drink Federation expects food inflation to peak next year.

Brent crude held above $116 per barrel on Tuesday, hovering at the highest since June 2022, as investors weighed renewed diplomatic efforts in the Middle East to prevent a wider escalation of the US-Iran conflict. Reports said senior officials from Saudi Arabia, Pakistan, and Turkey met with top Iranian officials on Monday to ease tensions and revive negotiations aimed at avoiding another wave of US-Israeli strikes against Iran. The discussions come roughly a week before the US midterm elections, after which President Donald Trump has repeatedly suggested that military strikes against Iran could resume following months of stalled negotiations. Meanwhile, Saudi-led forces continue to engage Iran-backed Houthi rebels, while Hezbollah is reportedly preparing for another regional conflict in Lebanon after receiving financial support from Iran. These ongoing tensions continue to pose risks to Middle Eastern oil supplies, despite crude flows having recovered to around prewar levels.