European stock futures lower; Chinese trade, German industrial output disappoint By

- European stock markets are Is short-term foreign exchange trading real or fakeexpected to open lower Tuesday, as investors digested weak Chinese trade data and more quarterly corporate earnings.

At 02:05 ET (07:05 GMT), the contract in Germany traded 0.3% lower, in France dropped 0.5% and the contract in the U.K. fell 0.3%. 

Chinese trade data disappoints

European equities are set to follow their Asian counterparts lower after data released earlier Tuesday highlighted continued headwinds for the Chinese economy, the second largest in the world.

Chinese slid 6.4% year-on-year in October, accelerating from a 6.2% drop in the prior month, while the country’s fell to its worst level since May 2022, at the height of the COVID-19 pandemic. 

The drop in exports signaled worsening overseas demand, particularly from China’s biggest trade destinations - Europe and the U.S..

Adding to the negative sentiment, the hiked interest rates earlier Tuesday, citing a slower-than-expected decline in inflation.

German industrial production contracts sharply

Evidence of this weak economic conditions in Europe came with the release of figures for September, which fell 1.4% on the month. 

This followed on from a revised 0.1% fall the prior month and illustrates the difficulties the eurozone’s dominant economy is suffering

Eurozone September are scheduled for release later in the session, and are expected to rise 0.5% on the month, a 12.5% drop on an annual basis.

UBS reports hefty quarterly loss

In corporate news, UBS (SIX:) reported a $785 million third-quarter loss on Tuesday, much higher than expected, after booking $2.1 billion in expenses tied to the Swiss bank's takeover of rival Credit Suisse.

French IT consulting group Capgemini (EPA:) posted a 1.3% fall in third quarter revenue, as conditions remained “challenging" and with revenues declining in the North American region.

Results will also be studied from the likes of (ETR:), Associated British Foods (LON:), (LON:) and (LON:).

Crude slips after weak Chinese trade data

Oil prices fell Tuesday after the disappointing trade data from China raised concerns over sluggish demand in the world's largest oil importer. 

Chinese exports fell more than expected in October amid worsening overseas demand, while an unexpected rise in imports saw China’s trade surplus shrink to its worst level in 17 months.

This prolonged weakness in exports could stymie growth in the country going forward and thus dent oil demand.

By 02:05 ET, the futures traded 1.1% lower at $79.94 a barrel, while the contract dropped 1.1% to $84.25 a barrel. 

Both contracts were nursing steep losses over the past week, amid growing expectation that the Israel-Hamas war will not disrupt supply in this oil-rich region.

Additionally, fell 0.6% to $1,975.80/oz, while traded 0.2% lower at 1.0696.

 

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!