European markets fell on Tuesday as investors digested a series of corporate earnings reports and remarks from the U.K.’s Finance Minister Rachel Reeves ahead of the country’s upcoming budget. The decline came after a strong start to November’s trading, signaling renewed caution among traders across the region.
The pan-European Stoxx 600 index slipped 1.1% in early morning trading, with all major sectors in negative territory. London’s FTSE 100 dropped 0.7%, Germany’s DAX fell 1.4%, France’s CAC 40 slid 1.2%, and Italy’s FTSE MIB declined 1%. The downward shift reflected a broad-based retreat as investors weighed mixed corporate results and macroeconomic uncertainty.
U.K. government bonds, known as gilts, also saw movement as the yield on the 10-year note fell nearly four basis points to 4.405%. The decline followed a speech by Finance Minister Rachel Reeves, who warned of “hard choices” ahead of the November 26 budget, signaling possible fiscal tightening. The British pound weakened by 0.27% against the U.S. dollar, trading at $1.31 by mid-morning in London.
Among corporate movers, Danish renewables leader Ørsted rose almost 1% after confirming it would sell a 50% stake in its Hornsea 3 offshore wind farm to Apollo Global Management in a $6 billion deal. Meanwhile, BP gained 0.7% after posting a better-than-expected third-quarter profit of $2.21 billion, boosting investor confidence in the oil major’s cost control and energy transition strategy.
Globally, market sentiment was mixed. Asia-Pacific indices traded narrowly higher overnight, while U.S. stock futures edged lower after Monday’s AI-fueled rally. Tech optimism continued to dominate headlines, with Amazon surging 4% after announcing a $38 billion partnership with OpenAI, underscoring how artificial intelligence remains a key driver in global markets even amid short-term volatility.
source: cnbc