European stock futures decline; German industrial production and trade with China fall short

Tuesday's opening of the European stock markets is predicted to be lower as investors process dismal trade data from China and a greater number of quarterly corporate earnings.

Following their Asian counterparts, European stocks are expected to decline as statistics from earlier on Tuesday indicated that the second-biggest economy in the world, China, is still facing challenges.

China's trade surplus dropped to its lowest point since May 2022, during the height of the COVID-19 epidemic, as the country's exports plummeted 6.4% year over year in October, sharply down from a 6.2% decline in September.

The decline in exports was a symptom of weakening demand abroad, especially from Europe and the United States, China's two main trading partners.

The Reserve Bank of Australia raised interest rates earlier on Tuesday, adding to the unfavourable mood and blaming a slower-than-expected drop in inflation.

The announcement of German industrial output numbers for September, which decreased by 1.4% for the month, provided evidence of the precarious economic conditions in Europe.

This comes after a corrected 0.1% decline the previous month and highlights the challenges facing the main economy of the eurozone.

Later in the day, the eurozone will issue its September producer prices, which are predicted to increase by 0.5% for the month and decrease by 12.5% annually.

Oil prices dropped on Tuesday as worries about weak demand in the largest oil importer in the world were sparked by China's dismal trade statistics.

China's trade surplus shrank to its lowest point in 17 months in October as a result of an unanticipated increase in imports and a greater-than-anticipated decline in exports due to weakening foreign demand.

This ongoing decline in exports may hinder the nation's future growth and, as a result, reduce the need for oil.

(Sources: investing.com, reuters.com)