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Stock futures showed little change following a positive start to the week on Wall Street, while global markets reacted to a busy schedule of corporate earnings, economic data, and geopolitical developments.
Corporate Earnings and Automotive Sector Updates
UPS shares increased 1.3% after the delivery and logistics company reported third-quarter results that beat expectations, earning an adjusted $1.69 per share on $22.9 billion in revenue, compared to analyst projections of $1.63 per share on $22.29 billion. The company also raised its full-year revenue guidance.
Mercedes-Benz shares fell during early European trading after the German automaker lowered its annual profit margin outlook due to weakness in the Chinese market and rising costs, now expecting an adjusted return on sales of 2% to 3% in 2026, down from 3% to 5%. Meanwhile, Porsche reported that its operating profit rose to 1.74 billion euros ($1.94 billion) in the first nine months of the year following restructuring, despite a 5.9% drop in sales revenue to 25.28 billion euros and a 16% decline in deliveries to 178,532 vehicles. Porsche announced plans to cut its total workforce by 25% by 2035 and reduce management by 40% as part of a cash-saving strategy.
Dr Jochen Breckner stated in the report that the company achieved a solid operating result while generating strong net cash flow, demonstrating financial robustness.
HSBC shares dropped 6.5% in early European deals following a slight miss on consensus expectations for third-quarter pre-tax profit and revenue, though Europe’s largest bank announced a share buyback of up to $1 billion. Citi analysts described the results as mixed, noting a 2% revenue miss alongside an 18.8% return on tangible equity for the year to date.
Swiss drugmaker Novartis raised its profit outlook, expecting 2026 core operating income to grow in the low single digits, up from previous expectations of a small decline. The company posted third-quarter sales of $14.5 billion, up 4% year-on-year, though operating income declined 61% in constant currencies due to a $1.9 billion hit from a partial impairment of its del-desiran drug. CEO Vas Narasimhan told CNBC that leaders must remain courageous and push for breakthroughs to grow a company of that size.
Inflation and Consumer Confidence
In the United Kingdom, the British Retail Consortium reported that shop price inflation reached 2.1% annually between October 1 and October 7, driven by food inflation rising to 2.9%. Helen Dickinson stated that the dam is starting to break on the huge wave of costs retailers have absorbed over the last two years, urging the Chancellor to act ahead of the upcoming Autumn Budget to cut employment costs, reduce business premises taxes, and lower other duties.
In France, Insee reported that consumer confidence dropped to its lowest level since June 2013 in October amid public unrest, rioting, and demonstrations, with optimism regarding future living standards seeing a clear downturn alongside rising fears about unemployment.
Asian Markets and Technology Sector Growth
Asian technology companies advanced, tracking U.S. peers driven by optimism surrounding the Anthropic IPO filing. In Japan, SoftBank Group gained 7.6%, Tokyo Electron added 3.86%, Advantest surged 8.8%, and Kioxia rose 2.5%. In South Korea, SK Hynix climbed 7.1% and Samsung Electronics gained 5.2%. SK Hynix shares advanced further following reports of a potential $12 billion dividend plan stemming from its stake sale in Kioxia, ahead of its quarterly results announcement.
The Korea Exchange activated a buy-side sidecar on the Kospi, temporarily halting program trading as South Korean stocks surged, with the Kospi advancing 3.8%. In China, official data showed that industrial profits at large firms grew 14.4% in September from a year earlier, marking the strongest pace in three months, supported by AI-related manufacturing demand and Beijing’s efforts to curb price wars.
European Markets and Commodities
European stock markets opened mostly lower, with the pan-European Stoxx 600 down 0.27%. Basic resources led gains with a 0.68% increase, while banks led losses by tumbling 1.18%. The U.K. FTSE 100 fell 0.93%, France’s CAC 40 dropped 0.28%, Germany’s DAX slipped 0.17%, and the Italian FTSE MIB declined 0.29%.
Oil prices remained mixed, with Brent crude futures for December delivery trading just above the flatline at $115.84 per barrel and West Texas Intermediate futures dropping almost 0.1% to $101.65 per barrel. The choppy price direction followed diplomatic talks between Saudi Arabia, Turkey, Pakistan, and Iranian officials, as U.S. President Donald Trump continued to weigh a potential step-up in military operations against Tehran.
Among after-hours movers in the U.S., Whirlpool dropped nearly 9% after slashing its full-year revenue guidance to $14.5 billion and reporting third-quarter revenue and earnings below analyst estimates. JetBlue Airways surged 7% after projecting further margin expansion in the fourth quarter despite anticipated higher fuel prices, reporting a third-quarter adjusted loss of 60 cents a share alongside revenue that narrowly missed expectations.
