European Midday Briefing: Shares Up as Investors Weigh Tariffs; Inflation Data Due

MARKET WRAPS

Stocks:

European shares were up on Friday following Trump's latest wave of tariffs and with key U.S. inflation data now in focus, as investors look for cues on the Federal Reserve's next rate cut move.

Trump announced many new tariffs Thursday, including a 100% levy on drugs from pharmaceutical companies that aren't building plants in the U.S.

Pharma stocks in Europe fell in early trade. Investors likely don't believe the pharmaceutical tariffs will have real, significant bite in the end, according to Citi Wealth.

Gauging the impact of the pharmaceutical tariffs is difficult, as many big drug companies already have U.S. facilities and have announced expansions, AMP said.

But the further tariffs, with more still to come on products like semiconductors, highlight that the tariff threat has not gone away , it added.

Stocks to Watch

Trump's announcement of 25% tariffs on imported heavy trucks is light on detail, but Daimler Truck could suffer the most given current production in the U.S. and overall exposure to the U.S. at the group level, Bernstein said.

U.S. Markets:

Stock futures were up after the three U.S. major indexes posted a third day of declines on Thursday for the first time in six months.

A fresh batch of government data and corporate news offered mixed signals on the outlook for the economy. Traders are now turning their attention to the PCE report expected later today.

Forex:

The euro was slightly firmer against the dollar.

RBC Capital Markets expects a continued appreciation of the euro, without this prompting further European Central Bank rate cuts.

The dollar turned lower after Trump's new wave of tariffs.

Commerzbank said the U.S. economy's dependence on private consumption posed a risk if sentiment declined.

Trump's " erratic trade policy is doing much to dampen consumer sentiment," it said.

Bonds:

Realized and implied volatility are on a clear downtrend in Europe while government bond yields continue to drift higher , favoring carry trades, according to Societe Generale.

SEB Research said eurozone government bond yields were expected to face structural, or longer-term, upside pressure .

Long-dated Treasury yields edged higher after some better-than-expected macro data.

SEB Research expected Treasury yields to decline and the yield curve to steepen, mainly driven by further interest-rate cuts by the Fed.

Energy:

Oil prices were on track for a significant weekly gain

following news that Russia plans to temporarily ban diesel exports from resellers and extend its gasoline-export ban amid Ukrainian drone strikes against refineries.

Metals:

Gold prices edged higher in early trade, as Trump's latest tariffs and elevated geopolitical risks due to tensions over Russian incursions into NATO airspace kept safe-haven demand strong.

Gold Chart

Comex gold futures'

consolidation phase was in play, RHB Retail Research said. A narrow-body candlestick pattern on the daily chart showed that the commodity's momentum was neutral during the session.

Copper

Copper traded lower but remained on track for a weekly gain as investors weighed supply disruptions.

Shaw and Partners said the price of copper "will need to rise dramatically" to spur enough investment in new mines to meet demand. Bringing on new copper supply was challenging and production costs were likely to rise, it said.

Sucden Financial analysts expected any additional copper price increases to stem from speculative interest rather than fundamental factors. It pegged a new support level for copper prices at $10,200 a ton.

Iron

Prices will likely continue to fluctuate , Baocheng Futures said. The ferrous metal's supply has rebounded, while demand is weakening.

Rare Earths

Growth in the rare-earth supply chain outside of China depended on manufacturers and governments being receptive to higher prices for rare earths produced elsewhere, Morgan Stanley said.

EMEA HEADLINES

Brunello Cucinelli Shares Continue Slide Following Short-Seller's Russia Claims

Shares in Italy's Brunello Cucinelli continued to fall in early trade Friday following claims from a short-seller that the company is misleading shareholders and regulators about its Russian operations.

Milan-listed shares dropped 8.8% in early trading to 77.60 euros, having on Thursday plummeted by 18% and been briefly halted at the start of trading Friday.

Europe's Right-Wing Populists Swerve Left on the Economy

BERLIN-Right-wing populists have a new strategy to woo European voters frustrated with cash-strapped governments: Veer left.

From Sweden to Greece and Austria, parties that for years favored a small state, low taxes, free trade and deregulation are now calling for higher welfare benefits, subsidies and protectionism-often alongside pro-market positions.

Boeing Gets Aircraft Order From Turkish Airlines

Boeing received orders for up to 225 aircraft from Turkish Airlines, a major purchase for the American plane maker as it seeks to reset its business.

Turkish Airlines said Friday that it decided to purchase a total of 75 aircraft from Boeing, consisting of 50 firm and 25 option orders for B787-9 and B-787-10 models with deliveries scheduled between 2029 and 2034.

Prosus to Buy Providence's La Centrale for $1.3 Billion

Tech investor Prosus said its OLX Group online-marketplace business agreed to buy French platform La Centrale from Providence Equity Partners for 1.1 billion euros ($1.28 billion).

The Dutch company said Friday that the all-cash deal represents a step toward its ambition to build a European e-commerce ecosystem.

Nestle Names New Nespresso CEO After Navratil Steps In to Lead Group

Nestle named Alfonso Gonzalez Loeschen as chief executive of Nespresso, turning to a company veteran to lead its coffee business after former head Philipp Navratil was appointed CEO of the group.

The Swiss maker of Nescafe coffee and Purina pet food said Gonzalez Loeschen, currently CEO of Nespresso's North American business, would assume the position as global head of the brand on Nov. 1. He will also sit on the group's executive board.

Jaguar Land Rover Restarts Some IT Systems After Cyberattack

Jaguar Land Rover has begun a gradual restart of its operations, with some IT systems back online following the recent cyberattack on the U.K. automaker.

The company, owned by India's Tata Motors, discovered a cyberattack late last month, forcing it to shut down its computer systems and halt production.

GLOBAL NEWS

Global Markets Mixed After Pharmaceutical, Trucks Tariffs Announcement

It was a mixed picture across global stock markets Friday after a third straight day of falls on Wall Street. Asian bourses ended down, European markets started the day higher and U.S. stock futures were a touch higher. Investors were responding to President Trump's announcement of new tariffs on pharmaceutical companies and big-truck makers, with those sectors under broad selling pressure. On the economic front, the final estimate of second-quarter U.S. GDP growth came in stronger than expected on Thursday, with Friday's figures for August PCE inflation, the Federal Reserve's preferred measure of inflation, now in focus.

-Most big pharma stocks were down in Asia and Europe after President Trump announced new tariffs on drugs from companies that aren't building plants in the U.S. "Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America, " Trump posted on Truth Social. It was unclear how branded or patented pharmaceutical products will be defined, and many of the biggest pharma companies have announced new construction in the U.S. recently.

Trump to Slap New Tariffs on Pharma, Big Trucks

WASHINGTON-President Trump announced many new tariffs Thursday, including a large one on drugs from pharmaceutical companies that aren't building plants in the U.S.

"Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America," Trump posted on his social-media site, Truth Social, without providing details.

Fed Independence Reaches Its Moment of Truth as Supreme Court Weighs Cook's Fate

The Supreme Court is poised to decide whether President Trump can remove Lisa Cook from the Federal Reserve's board in a case that economists and former Fed officials say threatens to severely erode decades of central bank independence.

Trump's broad challenge over interest-rate policy, which began with sustained criticism but has moved to direct action to remove governors, "represents an existential crisis for the Fed," said Ethan Harris, former head of global economic research at Bank of America.

Trump Confirms He Will Block Israel From Annexing West Bank

President Trump said he would block Israel from annexing the West Bank, issuing a new ultimatum to head off a move that other Western and Middle Eastern powers warned could further inflame regional tensions and jeopardize Israel's normalized ties with some Arab nations.

"I will not allow Israel to annex the West Bank. I will not allow it. It's not going to happen," Trump told reporters in the Oval Office on Thursday, publicly reiterating a pledge he made to Arab leaders privately earlier this week.

James Comey Indicted on False Statement Charges

ALEXANDRIA, Va.-A federal grand jury in Virginia indicted former FBI director James Comey on Thursday on charges of making false statements and obstruction, days after President Trump demanded the prosecution and ousted the U.S. attorney who determined there was insufficient evidence to bring the case.

(MORE TO FOLLOW) Dow Jones Newswires

September 26, 2025 05:26 ET (09:26 GMT)