The UK budget deficit widened more than officially estimated in September and also hit the highest level for the month since 2021, the Office for National Statistics reported Tuesday. Public sector net borrowing increased to GBP 16.6 billion in September from GBP 14.5 billion in the previous year. This was the third highest September borrowing since monthly records began in January 1993.

Europe's new car registrations declined for the second straight month in September due to the fall in sales across France, Germany and Italy, data published by the European Automobile Manufacturers' Association, or ACEA, showed Tuesday. New car sales decreased 6.1 percent in September from a year ago. However, this was much slower than the 18.3 percent fall posted in August.

Public sector finance data from the UK and new car registrations from Europe are the top economic news due on Tuesday. At 2.00 am ET, the Office for National Statistics publishes UK public sector finance data. The public sector net borrowing is seen at GBP 17.4 billion in September compared to GBP 13.7 billion in August.

The European Central Bank could have waited till December to lower interest rates, but the economic data since the September policy session signaled a shift in risks to inflation to the downside, and thus policymakers opted for a rate cut this month, Governing Council member Peter Kazimir said on Monday.

Eurozone inflation rates continue to fall and growth in the single currency economy remains sluggish, thus allowing for a gradual reduction in interest rates, European Central Bank Governing Council member Martins Kazaks said on Monday.

The Conference Board released a report on Monday showing its reading on leading U.S. economic indicators fell by more than expected in the month of September. The report said the leading economic index slid by 0.5 percent in September after falling by a revised 0.3 percent in August.

The European Central Bank could cut interest rates further if inflation continues to slow and the economy remains sluggish, Governing Council member Gediminas Simkus said on Monday, but he refrained from predicting the December move.

The U.S. Dollar extended gains against major currencies during the week ended October 18 amidst growing expectations of a Trump presidency, widely perceived as boosting the U.S. dollar.

UK house prices increased at a below seasonal average pace in October due to the rise in buyer choice and increasing seller competition, property website Rightmove said Monday. House prices grew 0.3 percent month-on-month in October, which was much lower than the average seasonal 1.3 percent increase at this time of year. Prices had increased 0.8 percent in September.

Malaysia's economy posted a slower growth in the third quarter on a contraction in mining and slower growth in services output, official data revealed Monday. Gross domestic product grew 5.3 percent on a yearly basis in the third quarter after rising 5.9 percent in the previous quarter, advance estimates from Department of Statistics showed.

China reduced its benchmark lending rates by 25 basis points on Monday as the economic growth slowed further amid persistent deflationary pressures. The People's Bank of China cut its one-year loan prime rate to 3.10 percent from 3.35 percent. Likewise, the five-year LPR, the benchmark for mortgage rates, was lowered to 3.60 percent from 3.85 percent.

The U.S. dollar turned a bit weak on Friday, snapping a five-day winning streak, with global stocks moving higher on increased risk appetite after the Chinese government announced a couple of funding schemes.

After reporting a sharp increase in new residential construction in the U.S. in the previous month, the Commerce Department released a report on Friday showing a modest pullback by housing starts in the month of September. The Commerce Department said housing starts fell by 0.5 percent to an annual rate of 1.354 million in September.

The Australian dollar strengthened against other major currencies in the Asian session on Friday, after China's economy grew at the slowest pace in more than a year in the third quarter.

UK retail sales logged an unexpected growth in September on higher sales of technology products, the Office for National Statistics said Friday. Retail sales grew 0.3 percent on month in September, confounding expectations for a 0.3 percent fall. This marked the third consecutive increase. Sales had increased 1.0 percent in August and 0.8 percent in July.

Retail sales data from the UK is the major economic report due on Friday, headlining a light day for the European economic news. At 2.00 am ET, the Office for National Statistics releases UK retail sales data for September. Sales are forecast to fall 0.3 percent on a monthly basis, reversing an increase of 1.0 percent in August.

China's economy grew at the slowest pace in more than a year in the third quarter despite an improvement in retail sales as the property market continued to be a major drag on growth. Gross domestic product expanded 4.6 percent on a yearly basis in the third quarter, data from the National Bureau of Statistics showed on Friday. This was the weakest growth since the first quarter of 2023.

After struggling for direction during the Asian and European sessions on Thursday, the U.S. dollar climbed higher in the New York session, buoyed by data showing a more than expected increase in U.S. retail sales in the month of September. Data showing a drop in jobless claims contributed as well to the dollar's rise.

A report released by the Commerce Department on Thursday showed business inventories in the U.S. increased in line with economist estimates in the month of August. The Commerce Department said business inventories rose by 0.3 percent in August, matching a downwardly revised increase in July.

With inflation gradually easing and homebuilders anticipating mortgage rates will moderate in coming months, the National Association of Home Builders released a report on Thursday showing homebuilder confidence in the U.S. improved by slightly more than expected in the month of October.

A report released by the Federal Reserve on Thursday showed industrial production in the U.S. fell by slightly more than expected in the month of September. The Fed said industrial production decreased by 0.3 percent in September after rising by a downwardly revised 0.3 percent in August. Economists had expected industrial production to dip by 0.2 percent.

The European Central Bank cut key interest rates by 25 basis points, as expected on Thursday, as policymakers assessed that the disinflation process is on track, and but they are increasingly concerned over the health of the euro area economy following some soft data released since the September policy session.

A report released by the Commerce Department on Thursday showed retail sales in the U.S. increased by slightly more than expected in the month of September. The Commerce Department said retail sales rose by 0.4 percent in September after inching up by 0.1 percent in August. Economists had expected retail sales to rise by 0.3 percent.

First-time claims for U.S. unemployment benefits saw an unexpected pullback in the week ended October 12th, according to a report released by the Labor Department on Thursday. The report said initial jobless claims fell to 241,000, a decrease of 19,000 from the previous week's revised level of 260,000.

The Federal Reserve Bank of Philadelphia released a report on Thursday showing regional manufacturing activity has expanded overall in the month of October. The Philly Fed said its diffusion index for current general activity jumped to 10.3 in October from 1.7 in September, with a positive reading indicating growth. Economists had expected the index to inch up to 3.0.