French prosecutors have opened a preliminary investigation into multinational pharmaceutical company Sanofi over possible market manipulation.

A judicial source confirmed to CNBC on Tuesday that the Parquet National Financier, the French financial prosecutor, opened a preliminary probe in March 2023 into counts of “dissemination of false or misleading information and price manipulation,” relating to the company’s past communications.

Shares of the company traded 1.6% lower at 12:45 p.m. London time.

“Sanofi is not aware of any preliminary investigation on its 2017 accounts or other matter by the Parquet National Financier. We stand by the accuracy of our accounts,” Sanofi said in an emailed statement.

“As a listed company, the financial information published by Sanofi is accurate, precise and sincere, and is duly audited by two auditing firms. Sanofi reserves the right to take legal action against any false or defamatory allegations.”

— Elliot Smith, Jenni Reid

Klaus Rosenfeld, CEO of Schaeffler, discusses earnings and the firm’s takeover bid of Vitesco.

U.K. house prices rose 1.1% in September, lender Halifax said Tuesday, following six monthly declines.

Average prices were nonetheless down 3.2% on the prior year.

“Prospective sellers appear to be taking a cautious attitude, leading to a low supply of homes for sale. This is likely to have strengthened prices in the short-term, rather than prices being driven by buyer demand, which remains weak overall,” said Kim Kinnaird, director of Halifax Mortgages.

Meanwhile, shares of U.K. homebuilder Persimmon rose 4.4% Tuesday morning after the firm reiterated its profit guidance for the year and private sales rates had seen a “strong pick up” since the start of October.

It also said it was on track to deliver around 9,500 home completions in 2023, up from a previous guidance of at least 9,000.

— Jenni Reid

Shares of the U.K.’s Metro Bank were 2.8% higher at 9:30 a.m. London time after the lender said deposit outflow rates had normalized since an October scare over its balance sheet.

It reported a 4% dip in assets from the third quarter of 2022 to £21.6 billion ($26.59 billion), a 2% fall in loans to £12.5 billion, and a 5% drop in deposits to £15.6 billion.

The bank on Oct. 9 secured a £325 million capital raise and £600 million in debt refinancing after a turbulent few days during which trading of the stock was suspended due to sharp losses.

It said that would allow for growth as it shifts the business toward specialist mortgages and commercial lending.

UBS CEO Sergio Ermotti discusses the Swiss banking giant’s third-quarter earnings — its first full quarter since completing the takeover of stricken domestic rival Credit Suisse.

European stocks opened in the red on Tuesday before moving to the flatline as earnings and economic data — from U.K. retail sales and house prices to euro zone producer prices — continue to roll in.

Major bourses were slightly lower at 8:18 a.m. London time, with France’s CAC 40 down 0.1% and Germany’s DAX down 0.07%, while the U.K.’s FTSE 100 was down 0.03%.

U.K. retail sales rose by 2.5% in October, higher than the 1.6% growth of a year ago but below the three-month and twelve-month averages of 3.1% and 4.2%, respectively.

The British Retail Consortium, which published the figures, said sales likely declined by volume because of the impact of inflation.

Shoppers prioritized lower-price indulgences such as beauty products in what’s known as the “Lipstick Effect,” the BRC said.

Paul Martin, U.K. head of retail at KPMG, said sales “remained weak.”

“Whilst consumers are now operating in a lower inflationary environment compared to October last year where inflation peaked at over 11%, there is no doubt that the last 12 months have taken a toll on confidence and their ability to spend,” Martin said.

“Coupled with a higher interest rate environment, dwindling covid savings and the heating coming back on, beleaguered consumers are thinking very carefully about how they spend their money. As a result, the strong demand that has kept some retailers afloat over the last 18 months is now falling away.”

— Jenni Reid

Saudi state oil giant Aramco posted a 23% drop in net profit in the third quarter, down to $32.6 billion.

It attributed this to “the impact of lower crude oil prices and volumes sold.” 

Read the full story here.

— Natasha Turak

UBS reported a bigger-than-expected third-quarter net loss of $785 million as it works to integrate fallen rival Credit Suisse.

Analysts polled by Reuters expected the Swiss banking giant to see a quarterly net loss of $444 million.

Read the full story here.

China reported a worse-than-expected drop in exports in October, while imports surprisingly rose compared to a year ago.

China’s customs agency said exports in U.S. dollar terms fell by 6.4% in October from a year ago. That’s worse than the 3.3% drop predicted by a Reuters poll.

Imports rose by 3% in U.S. dollar terms in October from a year ago. That’s in contrast to Reuters’ forecast for a 4.8% drop from a year ago.

—Evelyn Cheng, Lee Ying Shan

Recent months have been volatile for stocks, thanks to sharply rising Treasury yields, expectations of a recession and high interest rates.

But stocks bounced back last week, with major averages capping their best week so far this year. Overall, the S&P 500 and Nasdaq Composite are still up around 15% and 29% in the year to date.

For those keen on getting back into the growth corner of the market, CNBC Pro screened for stocks in the iShares Russell 1000 Growth ETF that have further upside.

CNBC Pro subscribers can read more here.

— Weizhen Tan

The Bank of Japan’s recent decision to increase flexibility on its yield curve control is good news for its banking sector — and some stocks are set to benefit, according to Goldman Sachs.

Analyst Makoto Kuroda wrote in notes to CNBC that Japanese banks “remain in focus as a beneficiary” of BOJ’s interest rate normalization.

CNBC Pro subscribers can read more about Goldman’s top picks in the sector here.

— Amala Balakrishner

European markets are expected to open in negative territory Tuesday.

The U.K.’s FTSE 100 index is expected to open 5 points lower at 7,416, Germany’s DAX down 16 points at 15,120, France’s CAC down 25 points at 6,987 and Italy’s FTSE MIB down 88 points at 28,374, according to data from IG. 

Earnings come from Engie, Deutsche Post, Associated British Foods, Metro Bank, Direct Line, Poste Italiane, Saudi Aramco and UBS. Data releases include euro zone producer prices and German industrial output for September.

— Holly Ellyatt