European equities were broadly unchanged on Tuesday, with sentiment dampened by sluggish regional economic indicators while traders continued to track developments surrounding a possible Federal Reserve rate cut in December.
As of 08:02 GMT, Germany’s DAX was up 0.1%, France’s CAC 40 added 0.2%, and London’s FTSE 100 gained 0.1%.
German GDP Flat in the Third Quarter
Germany’s economy showed no growth in the third quarter of 2025, the national statistics office confirmed Tuesday, matching its earlier estimate. Additional pressure came from November’s Ifo survey, released Monday, which revealed that German firms have pared back their previous optimism—pointing to a challenging final stretch for 2025.
“The combination of a still-weak current assessment component and reversed expectations is another example of an economy that remains deeply stuck in stagnation,” analysts at ING wrote.
Meanwhile, European car registrations rose 4.9% in October, with electric vehicles continuing to outperform petrol and diesel models, according to data from the European Automobile Manufacturers’ Association.
“Despite this recent positive momentum, overall volumes remain far below pre-pandemic levels,” ACEA said. “The battery-electric car market share reached 16.4% year to date, yet it is still below the pace needed at this stage of the transition.”
Focus Turns to a Heavy U.S. Data Calendar
Across global markets, attention remains fixed on U.S. monetary policy signals. Federal Reserve Governor Christopher Waller reiterated that a weakening labor market could make the case for another quarter-point rate cut next month. His comments, together with similar remarks from John Williams last week, have fueled expectations that easing could be imminent.
CME’s FedWatch tool now shows traders assigning an 81% probability to a December rate cut, up sharply from 42% just a week ago.
A packed slate of U.S. releases—including September retail sales and PPI—is expected later in the day. However, the scarcity of current data following the extended federal shutdown has made rate forecasting more difficult for markets.
Corporate Highlights: EasyJet, Compass, Kingfisher
In company news, easyJet (LSE:EZJ) posted full-year operating profit above expectations and raised its medium-term targets for its holidays division after surpassing previous goals ahead of schedule.
Compass Group (LSE:CPG) projected around 10% profit growth for fiscal 2026 after topping annual earnings forecasts, supported by strong new business wins in the U.S., its largest market.
Home improvement chain Kingfisher (LSE:KGF) lifted its full-year profit guidance after underlying Q3 sales rose 0.9%, helping it gain market share in the UK.
Oil Prices Slip on Peace Deal Prospects
Crude prices moved lower Tuesday, pressured by renewed hopes for a U.S.-mediated peace agreement between Russia and Ukraine—a development that could pave the way for additional Russian supply returning to global markets.
Brent futures were down 0.6% at $62.32 a barrel, while U.S. West Texas Intermediate slipped 0.7% to $58.49.
The declines come after both benchmarks rose 1.3% in the previous session. Despite that uptick, oil markets have been grappling with significant losses in recent weeks due to rising concerns over excess supply and softening global demand.
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