European Stocks Muted as Worst October Since 2020 Comes to End

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(Bloomberg) -- European stocks were subdued on Tuesday, heading for their biggest drop for the month of October since 2020, as investors mulled mixed...

-- European stocks were subdued on Tuesday, heading for their biggest drop for the month of October since 2020, as investors mulled mixed earnings reports ahead of the Federal Reserve’s policy decision this week.The Stoxx Europe 600 was up 0.1% at 8:12 a.m. in London, with the food and beverage sector and chemicals stocks gaining while energy shares lagged.

While October has typically ended with positive returns over the past 25 years, that pattern was shattered this month, raising doubts about the prospect of a year-end rally. Technicals and positioning are providing some support but are not yet strong enough to offset macroeconomic and geopolitical headwinds. All eyes are on the Fed’s rate decision on Wednesday, as well as the Treasury Department’s new borrowing plan.

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"Unless there are significant declines in interest rates, we believe that credit losses will inevitably rise, perhaps significantly in 2025 and beyond."

 

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