European Midday Briefing: Shares Fall as Concerns About Fed Rates, Tech Valuations Weigh

MARKET WRAPS

Stocks:

European stocks were on track to close the week lower as investor caution regarding tech stocks and concern about the direction of U.S. interest rates further weighed on sentiment.

Europe's leading bourses including the FTSE100, CAC 40, the DAX as well as the Stoxx Europe 600 index lost ground, tracking with their counterparts in Asia where the Nikkei, the Kospi the Hang Seng and stocks in Shanghai finished lower.

Markets were confronted with uncertainty regarding a large backlog of economic data expected now that the longest government shutdown in U.S. history has ended.

"Several key releases, most notably the October CPI and employment reports, may never be published if agencies cannot finalise them in time, leaving markets to navigate 4Q with fewer data anchors than usual," Sucden Financial said.

While investors await the resumption of data releases from the U.S., markets appear split about the Federal Reserve's December meeting, with money-market pricing showing a roughly equal chance of a rate cut versus unchanged rates, Danske Bank said.

Third-quarter EU and eurozone employment data as well as EU foreign trade data for September are expected later.

Economic Insight

A number of eurozone peripheral countries, including Italy, Spain, Portugal, Greece and Ireland, have scope for further credit rating upgrades in 2026 , Citi said.

France, however, is likely to remain in a downwards trajectory and Belgium and Austria also face a risk of downgrades.

Market Insight

Bitcoin fell to a six-month low , returning below the key $100,000 level, after U.S. stocks registered their worst day in over a month as tech stocks slumped.

Stocks to Watch

The drop in investor optimism has had a knock-on effect on mining stocks in London.

Though the mining sector rallied recently, it trades down as investors express concern over bloated technology stock valuations, according to Interactive Investor.

Antofagasta and Endeavour Mining were among those companies losing ground.

U.S. Markets

U.S. futures pointed to a lower open Friday, adding to the declines posted at the end of the prior session, when stocks were weighed down by technology shares and concerns about the Fed's meeting next month.

Forex:

Sterling fell to a two-and-a-half-year low against the euro, and it lost ground against the dollar, after a report that the U.K. government will ditch plans to raise income taxes in its November budget.

Sterling's negative reaction to a Financial Times report that the U.K. government will drop plans to raise income taxes indicates credibility concerns over the November 26 budget, MUFG Bank said.

The decision could be viewed as the government prioritizing its "popularity with the public and the stability of the Labour party over doing what is best to restore confidence in the public finances."

Bonds:

Eurozone 10-year government bond yields rose, with the 10-year Bund yield reaching its highest level in five weeks . Bunds could recover some of their losses as markets second-guess Thursday's sharp moves and as risk-sentiment remained subdued.

"We therefore suggest a constructive tactical duration stance and suggest buying dips towards 2.7%," Commerzbank said.

Yields on U.K. government bonds rose sharply on renewed concerns about U.K. fiscal policy after reports that the government won't raise income tax.

Yields on shorter-dated Treasurys were little changed while longer-dated yields rose. Treasurys took clues from remarks from several Federal Reserve members on Thursday suggesting interest rates could stay unchanged in December.

Volatility in rates could pick up again, led by Treasury rates, as the U.S. government shutdown ends, and economic data could surprise to either direction, Societe Generale said.

"As the economy reboots, expect most action in dollar rates and keep a preference for U.S. Treasurys over Bunds."

The eurozone's fiscal trajectory, meanwhile, is unusually divergent , Societe Generale added.

"Germany is expected to pursue an expansionary fiscal policy in the coming years, in contrast to Italy's continued fiscal consolidation."

Diverging paths support a tight yield spread between Italian BTPs and German Bunds, while politics remains the key driver for French OAT-German Bund yield spreads.

"While the market is monitoring this closely, near-term drivers are less about deficit targets and more about the [French] government's survival, renewed political instability, and the risk of new elections."

Metals:

Gold prices slipped but remained on track for a weekly gain of more than 4%. Futures in New York were down.

Spot gold rose slightly while Comex gold futures' bullish technical setup remained intact, with futures staying above both the 20- and 50-day simple moving averages, RHB Retail Research said.

Energy:

Oil prices rose as reports of a Ukrainian drone strike on a major Russian export hub raised concerns over supply .

"Overnight Ukraine launched a major drone attack on Novorossiysk, a vital Black Sea port, which handles oil cargoes from Russia as well as oil exports from Kazakhstan," DNB Carnegie said.

EMEA HEADLINES

Cartier-Owner Richemont's Sales Accelerate as Jewelry Continues to Shine

Richemont, the owner of upscale brands including Cartier, reported a pick-up in sales growth, propelled by its jewelry division and as hopes for recovery in the luxury sector emerge.

The Swiss jeweler and watchmaker said Friday that sales for its fiscal second quarter ended Sept. 30 climbed 14% from the same period a year earlier at constant exchange rates. In the first quarter, group sales jumped 6% on year.

Google Offers Remedies to EU After $3.4 Billion Ad Tech Fine

Alphabet's Google submitted remedies to the European Commission after the bloc's 2.95 billion euros ($3.42 billion) fine over the dominance of the company's advertising technology business, but stopped short of offering to sell parts of the business.

"Our proposal fully addresses the [European Commission's] decision without a disruptive break-up that would harm the thousands of European publishers and advertisers who use Google tools to grow their business," the company said in a statement on Friday.

Swiss Re Says Low Natural-Catastrophe Losses Lift Results

Swiss Re reported a sharp increase in third-quarter net profit and said its results benefited from low natural-catastrophe losses.

Net profit was $1.4 billion for the third quarter and $4 billion for the first nine months as a whole, the Zurich-based reinsurer said Friday. This compares with $102 million and $2.2 billion the company reported for the respective year-earlier periods, when its results took a hit from an increase in U.S. liability reserves to cover future obligations.

Allianz Sees 2025 Earnings at Top End of Target Range, Maybe Higher

Allianz said it expects to meet at least the upper end of a guided profit range for the year after earnings rose over the first nine months of the year.

The German insurer made operating profit of 13.1 billion euros ($15.2 billion) in the year through September, up from 11.8 billion euros in the same period last year.

Putin Is Turning Eighth-Grade Classrooms Into Army Training Grounds

A class of Russian first-graders stood to attention this fall as a soldier who had served on the front line in Ukraine inspected their military uniforms.

"Check your dress!" ordered the serviceman. "Your buckles should face not left, not right, but straight ahead."

GLOBAL NEWS

China Registers Worst Investment Decline in Years as Slowdown Continues

SHANGHAI-Signs of weakness in China's economy stretched into October, with one measure of investment notching the sharpest slowdown in years.

U.S. to Cut Tariffs on Bananas, Coffee and Other Goods From Four Countries

The U.S. plans to eliminate tariffs on bananas, coffee, beef and certain apparel and textile products under framework agreements with four Latin American nations, a senior administration official told reporters Thursday.

The expected move-which would apply to some goods from Ecuador, Argentina, El Salvador and Guatemala-is part of a shift from the Trump administration to water down some of its so-called reciprocal tariffs in the midst of rising prices for consumers, as well as legal uncertainty after a Supreme Court hearing this month.

South Korea to Expand Support for Tariff-Hit Auto Industry

South Korea plans to expand policy support for its auto industry in the wake of a trade deal struck between Seoul and Washington.

The export-dependent economy is planning more than 15 trillion South Korean won, equivalent to $10.2 billion, of support measures for domestic manufacturers of cars and car parts. These include new loan programs and tariff quotas for raw materials used in manufacturing, the prime minister's office said Friday.

Low-Income Americans Are Struggling. The Economy Is Hammering Them.

Nearly a third of low-income households now live paycheck to paycheck while middle- and high-income earners show little sign of the same strain, according to a new analysis that underlines the recent caution expressed by the banking industry about Americans' diverging fortunes.

The discrepancy stems in large part from lower-income earners' slowing wage growth, wrote Joe Wadford, an economist at Bank of America Institute, which published the report on Monday. Inflation, recently rising at a 3% annual rate, has outpaced growth of 2% and 1%, respectively, in middle- and low-income after-tax wages and salaries, Wadford wrote.

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November 14, 2025 04:51 ET (09:51 GMT)