Sanitation

Morning Bid Europe

A look at the day ahead in European and global markets

By Gregor Stuart Hunter, Asia Finance & Markets Breaking News Correspondent

Data refreshes every time you open this email. For more European market news, click here. Please send any feedback to morningbid@thomsonreuters.com.

Sorry to disappoint if you were hoping for any calm before the storm. With voting about to begin for the US midterm elections, it might have been a quiet session, were it not for the ‌fact that the AI trade is buckling again.

Tech hardware suppliers sank in Asian trade on Tuesday, sending MSCI's broadest index of regional shares outside Japan down 1.4% to the lowest level in a week and a half.

Today's Market News

Asian shares slide

A cutout of U.S. President Donald Trump and a "Vote" sign are stuck on a vehicle as people gather during a Republican voter turnout event in The Villages, Florida, U.S., October 18, 2026. REUTERS/Maria Alejandra Cardona

Leading the declines were a fall of as much as 4.1% in South Korean shares and a 3.6% drop in Taiwanese shares, which are on track to confirm a technical correction after extending losses to ⁠13.3% from a record high in early October.

S&P 500 e-mini futures edged lower for a fourth consecutive day, off 0.1%, while Japanese markets were closed for a holiday.

In early European trades, pan-region futures fell 0.9%, German DAX futures slid 0.8% and FTSE futures were 0.2% lower.

Australian shares bucked the regional trend, rising 0.3%, and the Aussie dollar slipped 0.2% after the Reserve Bank of Australia lifted its cash rate target by 25 basis points to a near two-decade high of 4.85% in a split six-to-three vote. Some analysts think the central bank is done hiking for now after 125 basis points of hikes this year.

Graphics are produced by Reuters

Apple skids on margin outlook

Apple shares extended losses, falling 2.8% in after-hours trading after the iPhone ‌maker on ⁠Monday forecast lower gross margins for the crucial holiday quarter, citing rising memory-chip costs, and projected services revenue growth that fell well short of Wall Street expectations.

Oil prices steadied after a fall on Monday, with Brent crude 0.4% higher at $105.19 in Asian trading as investors weighed the state of peace talks between the US and Iran. The US carried out strikes on ⁠Iran's Qeshm Island in the Strait of Hormuz, a US official told Reuters on Monday, confirming an earlier Wall Street Journal report.

Voting also begins in the US midterms later on Tuesday. Opinion polls favour the Democrats to win the House, though the ⁠Senate remains too close to call.

Prediction market sites Polymarket and Kalshi currently assign probabilities of 77% and 76%, respectively, that the Democrats will control the Senate, but after being wrongfooted during Brazil's presidential election, traders are a little more distrustful ⁠this time.

Key developments that could influence markets on Tuesday:

European corporate earnings:
Associated British Foods, Lufthansa, Geberit, Koninklijke Philips, Bayer, Ferrari, Intesa Sanpaolo, Raiffeisen Bank International
North American corporate earnings:
AMD, Amgen, Shopify, Pfizer, Thomson Reuters
Economic events:
France: Budget balance for September
Debt auctions:
Germany: 5-year government debt
UK: 10-year government debt

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India File

By Blaine Rodrigues, Editor Online Production, with Reuters global staff

Indian shares snapped a two-month losing streak in October but benchmark indices are still down about 10% this year, and the Nifty is on course for one of its worst annual performances in more than a decade.

So where are India's 130 million retail investors choosing to put their money? That's the focus of this week's India File. You can write to me with your thoughts at blaine.rodrigues@thomsonreuters.com.

Scroll down for more on Sunday's protests in New Delhi, as well as the court clash between the Indian government and Volkswagen over a record $1.2 billion tax dispute. All that and more in our Must Reads.

The India File newsletter will take a break next week for Diwali and return on November 17.

This week in Asia

Far and wide: Where retail money is going

A man speaks on a phone inside the National Stock Exchange (NSE) in Mumbai, India, September 17, 2025. REUTERS/Francis Mascarenhas

India's retail investor is adapting.

After piling into domestic equities in the years after the COVID-19 pandemic, investors are now looking further afield in their hunt for better returns.

Many are seeking to tap into the AI investment boom through stocks in the US or South Korea, or strike it big in frontier markets such as Kazakhstan and Mongolia.

You can read more on that in this analysis by my colleagues Jayshree P Upadhyay and Dharamraj Dhutia.

Online investment platforms have made investing in overseas markets far easier, and several have launched funds and fractional investing options via India's GIFT City - a tax neutral hub that has less stringent rules on overseas investing.

In the first half of 2026, international investments by individuals in India, made directly or through funds, were on track to surpass 2025’s full year record.

"It has become very easy to start investing in international markets and for people chasing opportunity abroad it has become easier," said Sunny Agrawal, head of the fundamental equity research team at SBICAPS Securities.

Home comforts

But Agrawal thinks the tide is about to turn, with interest likely to move back home.

"I feel now on a relative basis India is better placed. If Indian equities start delivering better performance I think automatically the money will start moving back to India," he said.

That hope is reflected in the fact that monthly subscriptions into mutual funds remain robust despite the underperformance of the Indian markets.

The Association of Mutual Funds in India (AMFI), in September noted that Systematic Investment Plans (SIPs) - a method of investing a fixed amount of money regularly - amounted to a record 324 billion rupees ($3.42 billion), surpassing the record set in August. Active SIP accounts also rose to 100.6 million.

And Indian equities could be in line for a further boost.

SEBI has recommended the government scrap the long-term capital gains tax in a bid to lure back foreign investors. Jayshree P Upadhyay has the details in this exclusive report. The proposals also include changes to mutual funds that could benefit Indian retail investors.

Indian stocks could be poised for a recovery in the remainder of the financial year according to this report by Bharath Rajeswaran.

Resilient earnings, and IT stocks helped Indian shares snap their two-month losing streak in October. Brokerages predict a November rebound with the now familiar caveats around AI and crude oil prices.

Market matters

Jio Platforms soared 27% on its Mumbai debut after a record-breaking $3.2 billion IPO. The listing was the first for Mukesh Ambani's Reliance conglomerate in two decades and marks a step forward in his attempt to turn it into an "everything company".

You can read more on the IPO in this report by Vibhuti Sharma and Aditya Kalra.

Strong listing-day demand encouraged retail investors to take on more risk, borrowing $234 million to buy the stock, making it the fourth-largest margin-funded stock in the country. You can read more about that in this report by Vivek Kumar M.

Strong retail and institutional interest in the Jio IPO helped it reach a valuation of $137 billion making it India’s second largest company by market capitalisation. You can also read about the drones and DJs that made the IPO a party for more than just investors.

This week's must read

India defended its record $1.2 billion demand against Volkswagen in court, alleging the German auto giant undervalued imports for years and paid below the full tariff rates. You can read more in this report by Aditi Shah.
The RBI has warned banks of rising cyberattacks on financial infrastructure. Ashwin Manikandan has this report on what the central bank is seeking from banks in terms of compliance and their preparedness for AI-related risks.
Nike unveiled its first-ever running shoe designed specifically for India. Danielle Kaye has more on that.
Sun Pharma was ordered to halt eye-care drug production at its Assam facility after quality lapses were found. Rishika Sadam had that exclusive.

In pictures

Rahul Gandhi waves to supporters at a "Save Democracy" march towards Ramlila Maidan, in New Delhi, India, November 1, 2026. REUTERS/Anushree Fadnavis

Thousands protested in New Delhi on November 1 to demand the resignation of India's election chief over a revision of voter lists, the latest in more than a month of demonstrations challenging Prime Minister Narendra Modi.Saurabh Sharma and Sakshi Dayal report.

Read more

This newsletter was edited by Kate Mayberry