Global equities fell on Tuesday as investors grew cautious over stretched valuations and awaited a fresh wave of corporate earnings. European and Asian markets declined around 1.5%, while US futures pointed to a 1% drop at the open.
Adding to the cautious tone, Morgan Stanley CEO Ted Pick said a 10% to 15% correction in equities would be “healthy” after the recent run-up in valuations.
In France, Prime Minister Sébastien Lecornu received more time from the Socialist Party to meet their budget demands, easing near-term political pressure but leaving fiscal uncertainty lingering.
Meanwhile, gold traded little changed, holding just above US$4,000 an ounce, as markets remained broadly risk-off.
After a dismal year for automakers, sentiment toward European car stocks is showing signs of recovery. The sector has underperformed the broader market by over 20% in 2025, but analysts are turning more constructive following a wave of restructuring announcements aimed at boosting profitability.Investors will be watching a busy earnings slate today, with AIG, AMD, Spotify, Pinterest, and Rivian Automotiveamong the major names set to report