European stocks rose in early trading on Tuesday, as investors took confidence from signs that the U.S. Federal Reserve could slow down its rate increases, although concern about China's economy still weighed on Asian markets.
Asian equities struggled to make gains due to uncertainty over whether Xi Jinping’s new leadership team would prioritise economic growth. China's onshore yuan finished the domestic session with its weakest close since late 2007 . Some better-than-expected earnings results also supported European stock market sentiment, with Swiss bank UBS (UBSG.S) among those beating market expectations. But Europe's largest bank, HSBC, reported a 42% slump in third quarter profit, prompting a 4% fall in its shares (.HSBA.L).
Tech giants Alphabet and Microsoft report earnings later in the session.
Pinebridge's Redha said that earnings estimates have been edging lower in recent months but that the pace of this has been "fairly modest".
"The potential relief that investors feel in terms of coming towards the end of the hiking cycle, that seems to dominate over the grinding lower of earnings estimates."
The U.S. dollar index was a touch higher on the day, up 0.1% at 112.01 .
The euro slipped, down 0.1% at $0.98675 . The European Central Bank meets on Thursday and is set to raise rates by 75 basis points.
