MARKET WRAPS
Watch For:
Eurozone GDP, unemployment; U.K. Nationwide house price index; France GDP, consumer spending, CPI; Germany GDP, CPI, labor market statistics; trading updates for AstraZeneca, BP, Sanofi, CaixaBank, NatWest, Credit Agricole, Capgemini, Airtel Africa, Puma
Opening Call:
European stock futures were mixed after Asia stocks broadly fell. The yield on U.S. Treasurys were lower, the dollar weakened. Gold fell and oil rose.
Equities:
European equity futures were mixed after stocks on Wall Street saw losses overnight, as a revenue shortfall from Google parent Alphabet drove investors to trim their technology holdings.
“Enthusiasm for artificial intelligence can sustain high expectations, but results must demonstrate progress in profitability and cash generation,” said Antonio Di Giacomo, senior market analyst at XS.com.
“In this environment, the market can punish even substantial revenue growth when earnings disappoint, or investment requirements continue to rise.”
Dave Wagner, portfolio manager and head of equities at Aptus Capital Advisors, acknowledges that spending projections for several years from today are difficult to pin down accurate. But “the growth still very much resides in this space [chips],” he says.
Forex:
The U.S. dollar weakened as traders digested the latest U.S. economic data.
U.S. 3Q GDP growth exceeded expectations, while September PCE inflation accelerated.
“Resilient U.S. growth and sticky inflation keep a December Fed hike in play,” said MUFG Bank’s Lloyd Chan, adding that markets also continue to price further tightening into 2027.
Bonds:
The yield on U.S. Treasurys were lower, as U.S. indicators showed growth and inflation as still hot, with futures markets pricing in hikes in December, according to LSEG.
The likelihood of a recession striking in the next 12 month sits at about 10%, based on the latest economic data, said Glenmede’s Michael Reynolds.
It’s an unusual read on an economy that’s in its sixth year of expansion, he said, though there are reasons to believe some of the economic weakness seen in 2022 and 2023 helped reset the economy’s underpinnings, even if a formal recession didn’t happen.
This is a function of how durable U.S. growth has proven against a long list of shocks, including this year’s surge in energy prices, he said.
Energy:
Oil prices rose, after settling lower on hopes of U.S.-Iran talks.
Traders continued to weigh the prospect of renewed efforts to reopen the Strait of Hormuz against the possibility of another re-escalation.
Crude prices remained within the recent consolidation range as Gulf countries have been told to prepare for further U.S. military pressure on Iran, said Tim Furey at Tradeview Markets & YimmiT.
Tensions between Saudi Arabia and the Houthis add another layer of risk, keeping critical energy infrastructure and alternative export routes under threat, he added.
Oil is likely to stay rangebound until the dust from the U.S. midterms clears.
Metals:
Gold prices were lower, amid expectations of tighter monetary policy across major economies lending support to bond yields, said Infinox’s Thadeu Dos Santos.
U.S. inflation is still above the Federal Reserve’s 2% target and markets continue to price in a December interest rate hike and further tightening beyond the year-end, keeping yields supported and weighing on gold, he said.
A firm dollar adds to the pressure, while stronger-than-expected U.S. data sustains the case for keeping monetary conditions restrictive, he adds.
Copper prices were lower, as persistent inflationary pressures in the U.S. reinforce expectations for higher-for-longer interest rates, while weaker risk appetite weighs on market sentiment, Guangzhou Futures analysts said.
A sharp selloff in technology stocks is fueling concerns over returns on artificial-intelligence-related capital spending, damping risk appetite, they added.
However, tight copper concentrate supply and smelter losses continue to provide underlying support, while domestic inventories decline, they said.
Copper prices are likely to remain range-bound in the near term, with macroeconomic headwinds capping room for gains, they added.
Iron ore prices were lower amid weak demand. China’s molten iron production has dropped to relatively low levels and have limited room for near-term recovery due to a steel production control in northern China, Nanhua Futures said.
Meanwhile, iron ore supply are abundant as shipment levels remain high, they said. The accumulation of iron ore stocks at Chinese ports is slow, providing some support for iron ore prices, they added.
TODAY’S TOP HEADLINES
Cryptocurrencies Slide as News of Major Hack Spooks Markets
Cryptocurrencies fell during the Asian morning session as news of a massive crypto hack reverberated across markets.
Bitcoin, Ethereum and Ripple each dropped more than 2% after Binance, the world’s biggest crypto exchange, suspended transactions to investigate what could be the industry’s largest-ever hack.
Ukraine Pauses Strikes on Russian Refineries After Pressure From U.S.
KYIV-Ukraine’s military has paused its strikes against Russian oil refineries, people with knowledge of the operations said, after weeks of pressure from President Trump shook Kyiv’s confidence in U.S. support.
The unofficial pause, which is expected to last until after the U.S. midterm elections but potentially deeper into November, began early last week at the height of a crisis in U.S.-Ukrainian relations, the people said. Days earlier, Trump had called for the removal of Ukrainian President Volodymyr Zelensky, and Elon Musk’s SpaceX had limited Ukraine’s use of the Starlink satellite internet service.
Alphabet Sheds Half a Trillion in Market Value in Stock’s Worst Day Ever
Google’s stock suffered its worst day on record Thursday as investors confronted the reality that a company that has long been a dynamo of growth and profits faces painful trade-offs from the artificial-intelligence transition.
The slide erased roughly $500 billion from Alphabet’s market value. Google’s 13% decline also weighed on major U.S. stock indexes, fueling a decline in the Nasdaq composite and amplifying fears that the costs of the global AI build-out may be outrunning the returns.
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Expected Major Events for Friday 05:30/NED: Sep PPI
06:00/FIN: Sep Retail sales
06:30/FRA: Sep Household consumption expenditure in manufactured goods
06:30/FRA: 3Q GDP – first estimate
07:00/DEN: Sep Unemployment
07:00/GER: Sep Foreign trade price indices
07:00/UK: Oct Nationwide House Price Index
07:30/HUN: 3Q Preliminary GDP
07:45/FRA: Sep PPI
07:45/FRA: Oct Provisional CPI
08:00/SPN: 3Q Preliminary GDP
08:00/SPN: Oct Flash Estimate CPI
08:00/SWI: Oct KOF economic barometer
08:00/AUT: 3Q Flash Estimate GDP
08:00/CZE: 3Q GDP preliminary estimate
08:30/NED: 3Q GDP – 1st estimate
08:55/GER: Oct Labour market statistics (incl unemployment)
09:00/GER: Oct Bavaria CPI
09:00/GER: Oct North Rhine Westphalia CPI
09:00/GER: Oct Saxony CPI
09:00/GER: Oct Hesse CPI
09:00/GER: Oct Baden-Wuerttemberg CPI
09:00/BUL: Sep PPI
09:00/GER: 3Q GDP – 1st release
09:00/ITA: 3Q GDP preliminary estimate
09:00/GER: Oct Brandenburg CPI
09:30/POR: 3Q Flash Estimate GDP
09:30/UK: Nov Agents’ Summary of Business Conditions
10:00/GRE: Sep PPI
10:00/CRO: Sep Retail trade
10:00/EU: 3Q Preliminary Flash Estimate GDP
10:00/EU: Sep Unemployment
10:00/GRE: Sep Labour Force Survey
10:00/ITA: Oct Provisional CPI
10:00/ITA: Oct Cities CPI
10:00/LUX: Sep PPI
10:00/GRE: Aug Turnover Index in Retail Trade
10:00/CYP: Sep PPI
10:30/BEL: Sep PPI
13:00/GER: Oct Provisional CPI
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(END) Dow Jones Newswires
October 30, 2026 01:14 ET (05:14 GMT)
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