The start of the earning season was not enough to keep markets in profits

Earnings season has officially begun, with banks and financial companies, Blackrock, Wells Fargo, JP Morgan, Citigroup, G. Sachs, opening hostilities in the third quarter.

BlackRock reported revenue of $6.51 billion, exceeding analysts' expectations. Wells Fargo saw its profit grow 9% to $4.83 billion. JPMorgan's profit jumped 12% to €14.4 billion, while Citigroup saw a 16% jump in profit to €3.8 billion. Finally, Goldman Sachs' profit soared 37% to $4.10 billion.

The day was also marked by trade tensions between China and the United States, at a time when US Treasury Secretary Scott Bessent accused China of trying to "harm the global economy."

After the United States threatened the Asian country with a new tariff hike, which could reach triple digits, Beijing has already imposed controls on the export of rare earths and critical minerals.

This confrontation has rekindled investor fears of the outbreak of a trade war, which could once again shake the markets.

Henrique Valente, an analyst at ActivTrades Europe, says that "risk assets are falling again, reflecting renewed concerns about the trade war between the US and China."

The pressure comes after Beijing criticized the expansion of US sanctions, calling them an "abuse." The Chinese Ministry of Commerce said it remains open to dialogue, as long as Washington acts in good faith and reverses the latest measures. According to analysts in Beijing, much of the current escalation could have been avoided if the Trump administration had not imposed new restrictions in late September, which significantly increased the number of Chinese companies subject to export controls.

Beyond the possibility of a trade war, the US government remains in a shutdown . Scott Bessent has already stated that this shutdown is already having some impact on the country's economy. "It's starting to have a real effect on the economy," the Treasury Secretary revealed.

On the European side, sentiment was mixed, with the French stock market falling at a time when the country is presenting its state budget and Sébastien Lecornu's government may face some votes of no confidence.

There was good news in Germany, with investor confidence rising in October.

The day was also marked by the devaluation of oil prices, after the publication of the latest reports from OPEC and the International Energy Agency (IEA) pointing to excess production and a decrease in demand.

This Wednesday, company results will continue to be released, with ASML, LVMH, Abbott, BofA, Morgan Stanley and United Airlines presenting third-quarter accounts.

In Europe, industrial production for August will also be released, and is expected to decrease by 0.1%.