What is Moving the Markets Today?

European stocks stabilize on Monday, mostly retaining the positive tone from the start of the week as investors digest easing global tensions and a slew of quarterly corporate earnings.

As of 03:10 ET (07:10 GMT), Germany’s DAX index falls 0.1%, France’s CAC 40 drops 0.1%, while the U.K.’s FTSE 100 rises 0.3%.

Easing China-U.S. tensions
Global optimism strengthens as expectations rise that tensions between the U.S. and China will ease.

This is supported by Monday’s comments from U.S. President Donald Trump, indicating that he expects to reach a fair trade deal with Chinese President Xi Jinping at a meeting on the sidelines of an economic conference in South Korea next week.

Trade tensions between the world’s two largest economies weigh on global confidence, with disputes over tariffs, technology, and market access largely unresolved.

Takaichi to become Japanese Prime Minister
Sanae Takaichi, leader of Japan’s Liberal Democratic Party, will be sworn in as Japan’s 104th prime minister and its first female premier later in the session.

She succeeds Shigeru Ishiba, who abruptly resigned in September after the LDP suffered crushing electoral losses. Takaichi is regarded as a fiscal dove and is expected to increase government spending on infrastructure, industrialization, and defense.

Quarterly earnings season continues
In Europe, the economic calendar is mostly empty, allowing investors to focus on quarterly earnings.

Assa Abloy (ST:ASSAb), the world’s largest lockmaker, reports a slightly higher-than-expected third-quarter operating profit, despite a sluggish residential market in North America.

Husqvarna (ST:HUSQa), a Swedish manufacturer of outdoor power products, reports weaker-than-expected third-quarter results as uneven demand and soft North American sales weigh.

Unilever (LON:ULVR) announces it will adjust the timeline for the planned demerger of The Magnum Ice Cream Company due to the U.S. federal government shutdown, with further updates on the revised schedule to be provided as soon as possible.

L’Oreal (EPA:OREP) is due to release its latest earnings later in the session, and the French luxury company’s results will be closely analyzed following the announcement of its €4 billion acquisition of Kering’s (EPA:PRTP) beauty division.

Some major U.S. companies are also set to report on Tuesday, with Netflix (NASDAQ:NFLX) and Coca-Cola (NYSE:KO) standing out.

Oil continues to slip
Oil prices fall on Tuesday, remaining near five-month lows as concerns about rising supply and weakening demand undermine confidence.

Brent futures drop 0.5% to $60.72 a barrel, while U.S. West Texas Intermediate (WTI) futures fall 0.5% to $56.73 a barrel.

Prices reach their lowest levels since early May due to concerns that the U.S.-China trade dispute will impact economic growth, along with the International Energy Agency’s outlook for growing supply in 2026.