European stocks edge lower; German industrial output, corporate earnings in focus

investing.com:

Investing.com — European stock markets edged largely lower Tuesday, as investors digested weak German industrial output data as well as more quarterly corporate earnings.

At 03:45 ET (09:00 GMT), the DAX index in Germany traded 0.1% lower, the CAC 40 in France traded 0.2% lower, while the FTSE 100 in the U.K. traded flat.

German industrial production fell more than expected in September, falling by 1.4% compared with the previous month, offering up more evidence of the weak economic conditions in Europe.

This disappointing data suggests that the country's third-quarter GDP growth could be revised downwards, and is likely to increase pressure on the European Central Bank to loosen its monetary policies.

Eurozone September producer prices 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.

European equities had received a negative handover from Asia earlier in the session after data highlighted continued headwinds for the Chinese economy, the second largest in the world.

Chinese exports slid 6.4% year-on-year in October, accelerating from a 6.2% drop in the prior month, while the country’s trade surplus 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 Reserve Bank of Australia hiked interest rates earlier Tuesday, citing a slower-than-expected decline in inflation.

In corporate news, UBS (SIX:UBSG) stock rose 4.2% after the banking giant signaled that its core wealth business is stabilising even after posting a $785 million loss in the third quarter.