Author: Fiona Craig

British equities edged higher on Tuesday, bucking the broader downward trend across European markets, while a weaker pound and strong corporate results from major firms, including HSBC Holdings PLC (LSE:HSBA), supported the benchmark index.

As of 11:43 GMT, the FTSE 100 advanced 0.1%, while the pound slipped 0.2% against the dollar to 1.33. By contrast, the DAX in Germany and the CAC 40 in France both fell 0.1%.

UK corporate highlights

• HSBC Holdings PLC (LSE:HSBA) shares gained after the London-based bank posted third-quarter earnings ahead of forecasts. Adjusted profit before tax came in 9% above consensus, while total income beat expectations by 5%. The strong performance was evenly split between net interest and non-interest income. Net interest income rose to $11 billion, about 3% above projections from Jefferies, and the net interest margin improved to 1.57%, up 1 basis point quarter-on-quarter and 11 basis points year-on-year.

• Anglo American PLC (LSE:AAL) reaffirmed its full-year copper production guidance of 690,000–750,000 tonnes, following flat third-quarter output of 184,000 tonnes. Strong operational results at Quellaveco and Los Bronces offset softer performance at Collahuasi.

• C&C Group (LSE:CCR), the owner of Tennent’s and Bulmers, saw its stock rise 1.4% after reporting a 4% increase in operating profit to €41.9 million for the six months ending August 31, despite a 4% decline in net revenue to €825.7 million. Operating margin improved 0.4 percentage points to 5.1%.

• Evoke PLC (LSE:EVOK) reported a 5% year-over-year revenue increase to £435 million in the third quarter, marking its fifth consecutive quarter of growth. The company reiterated its full-year outlook, suggesting earnings will surpass current market expectations.

• Airtel Africa Plc (LSE:AAF) posted strong half-year results, with revenue rising 24.5% in constant currency to $2.98 billion for the period ended September 30, 2025. Its customer base grew 11% to 173.8 million, while data revenue surged 37% to $1.16 billion—outpacing voice for the first time.

• Rio Tinto Ltd (LSE:RIO) announced it is weighing the closure of Tomago Aluminium, Australia’s largest smelter, due to soaring energy costs. The company has begun employee consultations, which will run until November 21.

• In the pharmaceutical sector, AstraZeneca PLC (LSE:AZN) secured EU approval for its drug Koselugo to treat symptomatic, inoperable plexiform neurofibromas in adults with neurofibromatosis type 1. The green light follows positive data from the KOMET Phase III trial, which showed Koselugo achieved a 20% objective response rate versus 5% with placebo.

The gains in London come as investors weigh diverging regional performances, currency moves, and company-specific catalysts, with the FTSE outperforming its European peers in early trading.

U.S. stock index futures pointed to a slightly firmer open on Tuesday, signaling that Wall Street may extend the gains that pushed the major averages to fresh record highs at the start of the week.

The market remains supported by optimism surrounding an upcoming meeting between President Donald Trump and Chinese President Xi Jinping, which investors hope will pave the way for a trade agreement between the world’s two largest economies. Confidence was further underpinned by news of a U.S.-Japan deal on rare metals, reinforcing expectations ahead of the summit later this week.

Still, enthusiasm could be tempered as traders await the Federal Reserve’s policy decision on Wednesday. The Fed is widely anticipated to trim interest rates by 25 basis points, but investors will be paying close attention to Chair Jerome Powell’s press conference and the accompanying statement for signals on the pace of future rate cuts.

Data from CME Group’s FedWatch Tool shows a 94.9% probability of another quarter-point rate cut in December, though forecasts beyond that remain more uncertain.

Earnings are also set to dominate sentiment this week. Heavyweights including Alphabet Inc. (NASDAQ:GOOGL), Apple Inc. (NASDAQ:AAPL), Meta Platforms Inc. (NASDAQ:META), Microsoft Corporation (NASDAQ:MSFT) and Amazon.com Inc. (NASDAQ:AMZN) are all due to report quarterly results in the coming days.

On Monday, Wall Street surged for a second consecutive session, building on last week’s strength. The Nasdaq Composite jumped 432.59 points, or 1.9%, to 23,637.46. The S&P 500 added 83.47 points, or 1.2%, to 6,875.16, and the Dow Jones Industrial Average climbed 337.47 points, or 0.7%, to 47,544.59.

The advance was fueled by renewed trade optimism. Over the weekend, Treasury Secretary Scott Bessent described weekend negotiations with Chinese officials in Malaysia as a “very successful framework” ahead of the Trump–Xi talks. He also suggested that China may resume U.S. soybean purchases and postpone export restrictions on rare earth materials.

Before heading to Japan, Trump echoed this positive tone, voicing confidence about reaching a deal with Beijing after signing separate trade and mineral agreements with Malaysian and Cambodian leaders.

Hopes of lower borrowing costs have also strengthened sentiment in the lead-up to the Fed’s decision.

Sector-wise, chipmakers led the rally. The Philadelphia Semiconductor Index jumped 2.7% to a record close, powered by a sharp 11.1% rise in Qualcomm (NASDAQ:QCOM) after it unveiled new AI accelerator chips to compete with NVIDIA Corporation (NASDAQ:NVDA) and Advanced Micro Devices, Inc. (NASDAQ:AMD).

Telecom names also outperformed, with the NYSE Arca North American Telecom Index gaining 1.4%. Transportation, steel and software stocks posted additional gains, while gold producers fell sharply in tandem with lower bullion prices.

European equity markets were broadly muted on Tuesday, with traders maintaining a cautious stance ahead of several key central bank meetings this week and a closely watched encounter between U.S. President Donald Trump and Chinese President Xi Jinping, scheduled for Thursday in South Korea.

Sentiment was further weighed down by disappointing German data. A key consumer confidence gauge slipped to its lowest level since April, reflecting persistent geopolitical uncertainty and inflationary pressures.

The FTSE 100 in the U.K. rose 0.2%, while the DAX in Germany hovered just below the flat line, and the CAC 40 in France edged down 0.1%.

Corporate earnings drove much of the individual stock moves. Shares of Symrise AG (TG:SY1) fell sharply after the fragrance and flavor producer cut its full-year organic growth outlook. French bank BNP Paribas (EU:BNP) declined after missing third-quarter profit expectations.

Pharmaceutical group Novartis AG (NYSE:NVS) also traded lower despite delivering Q3 earnings in line with forecasts, while Dutch telecom operator KPN (EU:KPN) slipped following a modest 2% increase in quarterly revenue.

On the upside, HSBC Holdings (LSE:HSBA) climbed after the lender raised its 2025 profit outlook, even as pretax profit dropped 14% in Q3. Capgemini (EU:CAP) jumped after lifting its full-year revenue guidance on stronger third-quarter sales.

Meanwhile, Amundi (EU:AMUN), Europe’s largest asset manager, gained after reporting Q3 2025 profit before tax above analyst forecasts.

Tesla, Inc.’s (NASDAQ:TSLA) grip on the European EV market weakened further in September as sales fell by double digits, while Chinese competitor BYD Company Limited posted explosive growth, capturing a larger share of the region’s fast-growing electric vehicle segment.

Figures released by the European Automobile Manufacturers’ Association show that Tesla registrations in the EU, EFTA and the UK dropped 10.5% year-on-year to 39,837 units. The automaker’s market share declined to 3.2% from 4.0% a year earlier. That said, September sales rebounded sharply from August’s 14,831 units, reflecting a seasonal pickup in demand.

BYD (USOTC:BYDDY), in contrast, saw its registrations soar 398% compared with last year to reach 24,963 vehicles. Its market share climbed to 2% from just 0.4% previously. The strong growth was partly due to BYD’s limited European footprint last year, but also highlights its accelerated push into the region’s EV market. The company’s monthly sales also rose significantly from August’s 11,455 units.

Overall, new car registrations in Europe increased 10.7% year-on-year to 1.24 million units, supported by rising adoption of electric and hybrid vehicles. Both petrol and diesel models saw continued declines.

Hybrid vehicles led with a 34.7% market share, followed by petrol at 27.7%, while battery electric vehicles — Tesla’s primary focus — held 16.1%.

Although Tesla’s year-on-year decline has slowed, the company faces intensifying competition. Local European manufacturers are expanding their EV portfolios, and BYD continues to strengthen its presence with lower-priced models. Tesla’s brand perception in the region also remains fragile, weighed down by growing public criticism of CEO Elon Musk.

Tesla posted record deliveries globally in the third quarter as buyers rushed to take advantage of U.S. tax incentives before they expired. Yet, profitability missed expectations, pressured by shrinking margins and heavy investments in artificial intelligence and robotics.

BYD, which has outperformed Tesla in several months of 2025, continues its aggressive international expansion strategy. Both companies are also locked in an ongoing price war in China, which has squeezed their profit margins in recent quarters.

Gold prices continued to weaken in Asian trading on Tuesday, deepening their retreat below the $4,000 mark after mounting optimism over progress in U.S.–China trade negotiations eroded investor appetite for safe-haven assets ahead of this week’s Federal Reserve System meeting.

Spot gold fell 0.4% to $3,963.60 an ounce at 01:58 ET (05:58 GMT), while U.S. Gold Futures slid 1% to $3,981.59/oz. The metal lost more than 3% on Monday, hitting its lowest level in over two weeks, and is now down about 10% from its record of $4,381.29/oz set just a week earlier.

U.S.–China trade optimism weighs on gold

The recent pullback came after negotiators from Washington and Beijing struck a preliminary trade framework during talks in Kuala Lumpur over the weekend. The proposal seeks to avert additional tariffs and sanctions and could pave the way for a deal when President Donald Trump meets his Chinese counterpart Xi Jinping later this week.

Optimism over the talks has reduced the need for gold as a geopolitical hedge.

“Even after (Monday’s) correction, gold is still up more than 50% this year, underpinned by strong ETF demand and central bank buying amid diversification,” analysts at ING said in a note.

“The recent price pullback could even be seen by some central banks as a chance to increase their holdings,” they added.

Investors are now turning their attention to the Fed’s two-day policy meeting, which begins later today and is expected to conclude Wednesday with a 25-basis-point rate cut. While lower borrowing costs typically support gold by reducing real yields, much of the expected move appears already priced in, limiting potential near-term upside.

Metals move lower as risk sentiment improves

Other precious and base metals also weakened on Wednesday, reflecting a broader risk-on tone across markets.

Silver Futures fell 0.6% to $46.49/oz, and Platinum Futures dropped 1.6% to $1,556.60/oz. Benchmark Copper Futures on the London Metal Exchange declined 0.6% to $10,948.95 a ton, while U.S. Copper Futures fell 0.8% to $5.12 a pound.

LME copper hit a record $11,052/ton on Monday, buoyed by a tightening supply backdrop and hopes of stronger global trade activity.

“With supply disruptions stacking up and trade optimism growing, the outlook for copper is starting to look brighter,” analysts said.

Oil prices extended their losing streak to a third straight session on Tuesday as expectations of a fresh output increase from OPEC+ overshadowed market enthusiasm about a potential trade breakthrough between the U.S. and China.

At 07:57 GMT, Brent Crude futures dropped $0.83, or 1.26%, to $64.79 a barrel, while U.S. West Texas Intermediate (WTI) slipped $0.75, or 1.22%, to $60.56.

“Traders weighed up progress in U.S.-China trade talks and the broader outlook for supply,” Australia and New Zealand Banking Group (ANZ) noted in a report.

The decline follows the strongest weekly performance since June for both Brent and WTI, as oil markets previously rallied on U.S. sanctions against Russia. President Donald Trump’s move to target Lukoil and Rosneft marked the first Ukraine-related sanctions of his second term. Investors are still assessing how impactful those measures will be.

Sources familiar with discussions said the OPEC+ alliance, which includes Organization of the Petroleum Exporting Countries and Russia, is leaning toward approving another modest supply increase in December. The group began rolling back years of production cuts in April, gradually restoring output.

On the demand side, sentiment remains supported by expectations that Trump and Xi Jinping could finalize a trade agreement when they meet Thursday in South Korea. Both the U.S. and China are the world’s top oil consumers, and progress in talks is seen as a key factor for demand outlook.

Beijing signaled willingness to engage, with Foreign Minister Wang Yi telling U.S. Secretary of State Marco Rubio by phone that China hopes Washington can meet it halfway to “prepare for high-level interactions” between the two nations.

In response to the U.S. sanctions, Lukoil announced on Monday that it plans to sell its international assets — the most significant corporate move by a Russian energy company since the imposition of Western sanctions over the war in Ukraine that began in February 2022.

While sanctions on major oil exporters can provide a temporary boost to prices, the effect will be contained by spare capacity, said Fatih Birol, Executive Director of the International Energy Agency, on Tuesday.

Analysts at Haitong Securities echoed that view, noting that market participants expect the sanctions to have only short-term consequences, with limited medium- to long-term supply losses. Oversupply concerns, they said, are likely to keep a lid on prices.

U.S. stock futures traded without much direction on Tuesday as a packed week of earnings reports, major central bank meetings, and high-stakes trade negotiations gained momentum. President Donald Trump is in Japan on the latest stop of his Asia tour, with hopes rising that the visit will pave the way for a trade agreement with China after his summit with Xi Jinping in South Korea on Thursday.

Meanwhile, attention turns to UnitedHealth Group Incorporated (NYSE:UNH) ahead of its quarterly earnings release, and reports indicate Amazon.com, Inc. (NASDAQ:AMZN) is preparing a sweeping round of job cuts. Gold prices continue to decline after slipping below the $4,000 level.

Futures drift lower

U.S. equity futures hovered around the flatline early Tuesday, as investors awaited both corporate earnings and developments on the U.S.–China trade front.

By 03:50 ET, Dow Jones Industrial Average and Nasdaq 100 futures were unchanged, while S&P 500 futures were down 4 points, or 0.1%.

On Monday, Wall Street’s major indexes closed at fresh record highs for a second straight session, with sentiment lifted by optimism that the upcoming Trump–Xi meeting could help cool tariff tensions. Markets also reacted positively to expectations that an agreement might avert triple-digit U.S. import tariffs and ease Chinese export restrictions on rare earths, pushing the CBOE Volatility Index (VIX) to a one-month low.

Shares of Qualcomm Incorporated (NASDAQ:QCOM) jumped 11% after the company announced plans to launch two AI chips for data centers starting next year.

Trump in Japan ahead of China summit

Before his meeting with Xi, Trump has embarked on a rapid multi-country tour across Asia. On Tuesday, he visited Japan, where he met the nation’s new Prime Minister Sanae Takaichi, a protégé of former leader Shinzo Abe.

Trump and Takaichi signed a framework agreement aimed at securing rare earth supplies, a step intended to reduce dependence on China for critical minerals used in industries like EVs and semiconductors. Neither leader explicitly mentioned China, the world’s dominant rare earth supplier.

Japan also reiterated its intention to invest $550 billion in the U.S., as part of a larger trade package announced earlier this year. According to Reuters, the agreement includes investments in shipbuilding and commitments to purchase U.S. soybeans, gas, and pickup trucks.

UnitedHealth to report

Earnings season picks up speed this week, with UnitedHealth Group Incorporated set to report before the opening bell. Analysts are closely watching newly installed CEO Stephen Hemsley’s strategy to turn the company around.

UnitedHealth, like other major healthcare players, faces rising medical costs driven by increased reimbursement rates for specialist follow-up visits. The company has also faced mounting regulatory scrutiny over its prior authorization policies, which came under the spotlight following the murder of one of its top executives last year.

Later in the day, results are expected from Visa Inc. (NYSE:V) and Booking Holdings Inc. (NASDAQ:BKNG). Later this week, earnings from Alphabet Inc. (NASDAQ:GOOG), Meta Platforms, Inc. (NASDAQ:META), and Amazon.com, Inc. will also be in focus.

Amazon plans deep job cuts

According to Reuters, Amazon is preparing to eliminate as many as 30,000 corporate jobs starting Tuesday as part of an effort to reduce costs and adjust to post-pandemic hiring levels. The cuts represent nearly 10% of its corporate workforce and would be the company’s largest layoff since 2022, when 27,000 positions were cut.

The layoffs are expected to impact divisions such as podcasting, communications, devices, and potentially Amazon Web Services. CEO Andy Jassy has previously warned that further reductions could come as AI technologies reshape operations.

Gold falls further ahead of Fed

Gold prices extended losses after Monday’s slide below $4,000 an ounce, as easing U.S.–China trade tensions reduced the metal’s appeal as a safe haven. Spot gold fell 1.6% to $3,915.67 per ounce, while U.S. gold futures declined 2.3% to $3,928.26.

The metal fell more than 3% on Monday to a two-week low and is now down about 10% from its record high of $4,381.29 reached just last week.

“Even after [Monday’s] correction, gold is still up more than 50% this year, underpinned by strong ETF demand and central bank buying amid diversification,” ING Group analysts said. “The recent price pullback could even be seen by some central banks as a chance to increase their holdings,” they added.

Markets are now focused on the Fed’s two-day policy meeting, which is expected to conclude Wednesday with a 25 basis-point rate cut. While lower rates typically support gold by reducing real yields, much of the move appears already priced in, limiting near-term upside.

European equity markets were mixed on Tuesday as investors weighed a wave of corporate earnings against the backdrop of a highly anticipated monetary policy meeting by Federal Reserve System.

At 08:05 GMT, Germany’s DAX was down 0.3%, France’s CAC 40 slipped 0.2%, while the FTSE 100 in London edged 0.2% higher.

Markets look to Fed

The main focus of the week is the Fed’s two-day policy meeting, which begins later today. The U.S. central bank is widely expected to lower interest rates by 25 basis points on Wednesday, following last week’s inflation report showing annual inflation slowing to 3% in September — below expectations.

According to the CME FedWatch tool, traders are pricing in a 96% probability of a rate cut this week. Markets are also awaiting signals from Fed Chair Jerome Powell regarding the likelihood of another policy easing in December amid signs of a cooling labor market.

Other major central banks are also in the spotlight this week, with meetings scheduled at Bank of Japan, Bank of Canada and European Central Bank.

The ECB is expected to keep its policy rates unchanged, as inflation remains near its 2% target and growth appears steady. Meanwhile, sentiment in Germany is showing signs of weakening, with the GfK consumer confidence index falling to -24.1 points for November, from -22.5 points in October.

Trade talks in focus

Global trade developments also remain a key market driver. U.S. President Donald Trump is set to meet Chinese President Xi Jinping in South Korea on Thursday, where the two are expected to finalize a trade deal. Optimism has grown after negotiators in Kuala Lumpur reached a draft agreement aimed at avoiding new tariffs.

Trump also met Japan’s new Prime Minister Sanae Takaichi in Tokyo on Monday to discuss defense cooperation, trade, and a $550 billion U.S. investment package announced earlier this year.

HSBC hit by legal charge, earnings roll in

The earnings season continued to generate headlines across Europe. HSBC Holdings plc (LSE:HSBA) reported a 14% drop in pretax profit for Q3, mainly due to a $1.1 billion legal provision. However, the bank raised its income outlook for the year, citing expectations of slower-than-expected rate cuts in key markets like Hong Kong and the U.K.

BNP Paribas (EU:BNP) reported a 6.1% rise in profit, supported by strong trading gains and the first contribution from AXA Investment Managers.

Novartis AG (BIT:1NOVN) posted higher Q3 sales and earnings, reaffirming its annual guidance as demand for key prescription drugs and late-stage pipeline progress remained robust.

Amundi S.A. (EU:AMUN) also beat profit expectations but noted that its 2028 strategy will factor in the uncertainty tied to the expiration of its distribution agreement with UniCredit S.p.A. in 2027.

Miner Anglo American plc (LSE:AAL) reaffirmed its full-year guidance despite mixed operational results — stronger manganese and diamond output offset weaker iron ore volumes.

Capgemini SE (EU:CAP) raised its 2025 growth outlook after a better-than-expected quarter, driven by solid North American demand and expansion in cloud, data and AI services.

Oil slides on OPEC+ production outlook

Crude prices fell Tuesday as investors reacted to reports of planned production hikes by OPEC+. Brent futures were down 1.3% at $64.03 a barrel, while U.S. West Texas Intermediate slid 1.5% to $60.40.

According to Bloomberg, OPEC+ is considering increasing output in December, with discussions pointing to a third monthly hike of 137,000 barrels per day. The move would aim to regain market share amid persistently weak oil prices.

C&C Group (LSE:CCR), the owner of Tennent’s and Bulmers, saw its shares edge up 1.4% on Tuesday after reporting a 4% increase in operating profit to €41.9 million for the six months ended August 31, despite a 4% decline in net revenue to €825.7 million.

The revenue dip was mainly attributed to the transfer of Budweiser Brewing Group volume in the Republic of Ireland. Profit growth, however, was driven by improved operating margins in both the Branded and Distribution divisions. The operating margin rose 0.4 percentage points to 5.1%, supported by tight cost discipline and the exit from low-margin contracts.

The company highlighted a “challenging market backdrop” for the hospitality sector in the UK and Ireland but delivered a strong performance. Underlying free cash flow more than doubled to €41.7 million, and the half-year leverage ratio was held at 1.1x.

“We have delivered a solid first-half performance against a challenging market backdrop,” said Roger White, Chief Executive Officer. “We continue to invest in initiatives to support improved business performance — building brands, delivering service, range and value to customers and consumers.”

C&C’s flagship brands proved resilient, with Tennent’s and Bulmers achieving both net revenue growth and market share gains. Tennent’s outperformed the broader lager category in the Scottish On-Trade, adding 0.6 percentage points of market share, while Bulmers strengthened its position in Ireland’s Off-Trade segment.

The company declared an interim dividend of 2.08 cents per share, a 4% increase year over year, and completed a €15 million share buyback in September as part of its €150 million capital return program.

Looking ahead, the company reaffirmed its full-year earnings guidance. “We believe we are well prepared for the all-important festive trading period, and whilst we expect challenging economic conditions to persist, we remain committed to the delivery of our full-year earnings targets,” White added.

BT Group (LSE:BT.A), the UK’s largest broadband provider, is reportedly evaluating the launch of a budget mobile brand as competitive pressures in the telecom sector intensify, according to a Financial Times report published Tuesday.

Sources familiar with the matter told the newspaper that the company is considering multiple strategic avenues for the expansion, including the creation of a new brand or the acquisition of an existing mobile virtual network operator (MVNO).

BT’s potential move into the low-cost mobile market comes as new players, including fintech firms Revolut and Monzo, expand their offerings beyond financial services into telecommunications. This trend is creating what the Financial Times described as a “rising threat” to established telecom operators.

The development underscores BT’s efforts to remain competitive in a rapidly evolving market, where pricing and bundled digital services are becoming key differentiators.