Global Stocks paused after a difficult start to the week

The Stoxx Europe 600 was down by 0.1% recently. The pan-European index missed the late reversal of US stocks on Monday, rising 0.9% earlier this week. Most markets in the Asia-Pacific region were up, driven by Japan's Nikkei Stock Average.

Stock markets have whizzed in recent weeks as investors focus on corporate profits and the health of the global economy. The S & P 500 is on the verge of its worst month since February 2009, as US markets were still in shock from the global financial crisis.

Recent losses include those that led the market up earlier in the year: technology companies.

Amazon.com
Inc.

fell in Monday's bear market zone – generally defined as a 20% drop from a recent high – wiping out $ 127 billion of its market value in two sessions. This took place after Amazon posted record quarterly earnings last week, but earnings below analysts' expectations.

Technology stocks "have been evaluated beyond perfection," said Ollie Brennan, senior macro strategist at T.S. Lombard.

Brennan said the losses in the technology sector were a good fit, even though the size and duration of the recent market downturn had been surprising.

"The sale was justified overall. The rally of recent months was in such a straight line, "he added.

Recent turmoil has occurred even though US companies were meeting the quarterly earnings forecast at the highest rate since 2011. Analysts will pay attention later Tuesday on upcoming corporate releases, including

Facebook

and

General Electric
.

Investors are struggling to give value to companies for the future, due to concerns about the impact of trade tensions, rising interest rates, the gradual downturn corporate tax cuts and more general questions about the duration of the second economic cycle in American history.

"The US economy continues to grow very well," said Brennan. "There is always an impetus for the rise in equities. But it will not be an increase of 15% per year. "

Trade tensions, in particular, appeared again on Monday following a report from Bloomberg that the United States is preparing to announce more tariffs by early December if negotiations between Washington and Beijing do not open. not on a breakthrough.

"These additional rates have long been reported – we now have a better idea of ​​the start date," wrote ING analysts in a note to customers, adding that the market reaction could be transitory.

Travel and leisure-related stocks drove the Stoxx Europe 600 down on Tuesday. Actions in

Deutsche Lufthansa
AG

fell about 9% after posting earnings below analysts' expectations.

Actions in

BNP Paribas
HER

fell about 4% after the French banking giant announced a rise in net profit in the third quarter compared with the previous year, but a decline in revenues and operating income.

BP's shares rose about 4% after reporting earnings more than doubled in the third quarter.

Volkswagen
AG

recorded a rise in profits with a 2.7% increase in shares.

Most markets were higher in the Asia-Pacific region. Japan's Nikkei Stock Average rose 1.5%, the Shanghai Composite Index 1% and the Australian S & P / ASX 200 1.3%. Hong Kong's Hang Seng Index bucked the trend, shedding 0.9%.

Merchants in the region also kept a close eye on the yuan after China guided its currency to its lowest official level in a decade, at $ 6.9574 per dollar. The recent fall in the currency has spurred speculation that new weaknesses may lead to capital flight from the world's second-largest economy.

In bond markets, the yield on the 10-year Treasury note rose slightly to 3.116%, according to 3.08% Monday, according to Tradeweb.

Investors expect the release of much data this week to gauge the health of the US economy. Economists expect the US-based Conference Board to announce a drop in consumer confidence in October after reaching its highest level in 18 years in September.

– Saumya Vaishampayan contributed to this article.

Write to Christopher Whittall at [email protected]