Europe stocks close higher; euro zone PMIs drop; Barclays down 7% as banks fall

European stocks closed higher Tuesday, with all major bourses in the green following a rough patch that saw the Stoxx 600 index fall 3.4% last week.

France's CAC 40 was up 0.63% and Germany's DAX gained 0.54% as the U.K.'s FTSE 100 rose 0.2%.

— Jenni Reid

Shares of Hermès were 3.1% higher in afternoon trade after the Birkin bag retailer reported 16% sales growth in the third quarter, beating analyst expectations.

Hermès started the week at a seven-month low, as its price has suffered along with other luxury firms amid concerns over slowing growth, weaker U.S. demand and a disappointing resurgence in China sales.

LVMH shares hit their lowest level of the year earlier in the month after the world's biggest luxury group disappointed on revenue.

— Jenni Reid

U.S. stocks opened higher on Tuesday with investors focused on the forthcoming slate of big tech earnings including results from Alphabet and Microsoft due out after the closing bell.

The Dow Jones Industrial Average popped 178 points, or 0.5%. The S&P 500 and Nasdaq Composite added 0.5% each.

— Brian Evans

Andrea Orcel, CEO UniCredit, discusses the company's third-quarter earnings and explains why it raised its guidance.

Norway's gigantic sovereign wealth fund reported third-quarter losses of 2.1% as all asset classes fell in value.

The $1.4 trillion fund, the world's largest, returned a loss of 374 billion Norwegian kroner ($34 billion) in the three-month period, citing a weaker quarter compared to the first half of the year.

"The stock market saw a weaker quarter compared to the two previous quarters," said Trond Grande, deputy chief executive of Norges Bank Investment Management. "It was particularly the tech, industrials and consumer discretionary sectors which contributed negatively to the return," he added.

Here's the full story.

— Sam Meredith

October PMI data showed business activity taking an unexpected dip, heightening fears of a recession in the euro zone.

The HCOB flash data showed euro zone Composite Purchasing Managers' Index (PMI) falling to 46.5 in October, down from 47.2 in September. The figure is the lowest since November 2020.

Ignoring the Covid-19 period, the reading is the lowest reading since March 2013.

— Hannah Ward-Glenton

Puma maintained its outlook for the year, despite earnings having dropped in the third quarter.

Net income decreased by 13.6% to 304.0 million euros ($324 million), but the company said it was "well on track" to achieving an operating result in the range of 590 million euros to 670 million euros as originally forecast.

Shares of Puma were up more than 3% after the announcement.

— Hannah Ward-Glenton

Shares of Logitech were up more than 10% in early trade after the company raised its full-year guidance.

Profits of the computer keyboard and webcam maker increased and the rate of its sale downturn decreased during its second quarter.

"The Logitech team stepped up execution this quarter and delivered results that demonstrate the underlying potential of our business," Guy Gecht, Logitech interim chief executive officer, said in a press statement.

Logitech said its full-year sales for the fiscal year 2024 would be between $4 billion and $4.15 billion, which is an upward revision from the $3.8 billion to $4 billion originally forecast.

Shares of Nemetschek were up 8% after the German software developer raised its 2023 revenue guidance. Currency-adjusted revenue growth is now expected to be between 6% and 8%, up from the previous 4-6% estimate.

Nemetschek said it expects the EBITDA margin for the full year to be at the upper end of the previously communicated guidance of 28% to 30%.

— Hannah Ward-Glenton

Shares of Barclays fell more than 6% after the British bank reported slightly higher-than-expected earnings for the third quarter.

Net profit was at £1.27 billion ($1.56 billion) for the three-month period, but investment bank revenues softened.

Income of Barclays' Corporate and Investment Bank (CIB) decreased by 6% to £3.1 billion. The bank cited reduced client activity in global markets and investment banking fees.

Read the full story here.

— Hannah Ward-Glenton

European markets opened tentatively higher Tuesday, with investors likely keeping an eye on the latest business activity data out of the euro zone.

The pan-European Stoxx 600 index opened 0.1% higher, with sectors spread across positive and negative territory. Mining stocks led gains with a 1.6% increase, while auto stocks dropped 0.8%.

— Hannah Ward-Glenton

Markets may be facing "unusual amount" of uncertainty — but there are good opportunities, according to Sanjay Ayer of the U.S.-headquartered WCM Investment Management.

CNBC Pro takes a look at the stocks he sees good potential in across three "brand new secular growth themes."

CNBC Pro subscribers can read more here.

— Amala Balakrishner

Investors will look to the upcoming earnings season to see whether stocks can recover from recent losses or if more declines are ahead.

Bond yields have risen over the past three months, bringing down the value of stocks — but the more imminent and real risk is on the earnings front as we enter the third-quarter reporting season, according to Gerry Fowler, head of European equity strategy at UBS.

UBS has identified stocks that could surprise, both positively and negatively, when their earnings results are released in the coming weeks.

CNBC Pro subscribers can read more about the UBS stock picks here.

— Ganesh Rao

European markets are expected to open higher Thursday.

The U.K.'s FTSE 100 index is expected to open 32 points higher at 8,365, Germany's DAX up 25 points at 18,510, France's CAC 7 points higher at 8,143 and Italy's FTSE MIB up 59 points at 33,908, according to data from IG.

Earnings are due from Ferrovial, Telefonica, EDP, Enel, Pirelli and Salvatore Ferragamo.

— Holly Ellyatt