EMEA Morning Briefing: Market Rout Intensifies

MARKET WRAPS

Watch For:

No major economic updates expected; trading updates for FirstGroup, ICG, Imperial Brands, Diploma

Opening Call:

European stock futures were lower after Asia stocks broadly fell. The dollar and U.S. Treaasurys held steady. Gold and oil fell.

Equities:

European futures fell after Wall Street saw an intensifying selloff across financial markets, dragging the Dow Jones Industrial Average to its worst three-day stretch since President Trump's tariff turmoil in April.

Investors in recent days have dumped assets in the lead-up to key tests for whether the artificial-intelligence boom and economic growth that powered stocks to successive records in 2025 will continue into the new year.

The retreat provided fresh evidence that Wall Street is peeking closer under the hood of the expensive and sometimes circular deals underpinning one of the largest infrastructure build-outs in U.S. history.

"There should be more winners than not," said Osman Ali, global co-head of Goldman Sachs Asset Management's quantitative investment strategies. "But at the same time, it's very clear there are going to be companies that cannot compete in this new world."

Forex:

The U.S. dollar held steady as most currencies weakened against the dollar amid risk-off sentiment spurred by Wall Street's losses overnight.

"Risk aversion in the air favors the USD," NAB's Rodrigo Catril said in commentary.

Investors appear to be more worried over the outlook for Nvidia, which releases earnings on Wednesday, as well as for artificial-intelligence-related stocks, the senior FX strategist said.

Bonds:

Global fixed income markets will have another constructive year in 2026, anchored by a strong year for U.S. Treasurys, TD Securities' rates strategists said.

"In some respects, 2026 is shaping up as a continuation of 2025--we look for Treasuries to once again outperform, with 10-year yields falling by another 50 basis points over the course of the year," they said.

The strategists expect 10-year U.S. Treasurys to finish 2026 at a yield of 3.50%, with a steepening in the U.S. curve to be driven by a faster fall in short-term yields than in long-term yields.

Energy:

Oil futures fell after oil tanker activity resumed at Russia's Novorossiysk port.

"The port had to suspend operations last week following a Ukrainian drone strike," CBA's Vivek Dhar said in a research report.

"The resumption of Novorossiysk port countered price gains tied to rising U.S.-Venezuela tensions and attacks on Sudan's oil infrastructure, " the analyst added.

Metals:

Gold futures fell after consolidating amid mixed signals.

On the one hand, expectations for a Fed rate cut in December fell to 42% overnight from a high of nearly 100% soon after the September decision, ANZ Research analysts said, noting that this has weighed on investor appetite for the precious metal.

On the other hand, however, structural tailwinds including geopolitical uncertainty and worries over U.S. debt sustainability are expected to support investment demand over the medium and long term, the analysts added.

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Base metals retreat as investors monitored emerging tension between China and Japan and likely awaiting U.S. economic data, said ANZ Research analysts.

An escalation of tension between the two major trading partners could have significant implications for commodity markets, they add.

The base metals complex remains vulnerable to mechanical unwinds as momentum signals fade, and prices could drift lower as the week progresses, says Sucden Financial.

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Iron ore rose, with the most-traded iron-ore contract on the Dalian Commodity Exchange 0.7% higher.

The ferrous market's recent sharp rebound is partially due to low valuations, Nanhua Futures analysts said in commentary.

However, the rally lacks sustainable upward catalysts and macro conditions are in a policy "vacuum period," Nanhua Futures added.

"We would look for opportunities to go short on iron ore at higher levels," it said.

TODAY'S TOP HEADLINES

Fed Vice Chair Says Economic Trade-Offs Justify Lowering Rates Slowly

Federal Reserve officials face a challenge resolving differences over how to set interest rates with little new economic data to guide tricky judgment calls.

Fed Vice Chair Philip Jefferson offered a case study in the central bank's predicament on Monday, acknowledging the risk of stubborn inflation and weaker employment conditions-dueling threats that call for opposing prescriptions.

Top Fed Chair Candidates Press Attacks on the Bank

Two of the leading contenders to replace Federal Reserve Chair Jerome Powell took aim at the Fed, sharpening their criticism as the White House prepares for a decision on the central bank's leadership.

Kevin Warsh, a former Fed governor, published an op-ed in The Wall Street Journal on Sunday, arguing that the central bank has become an obstacle to stronger economic growth. He accused Fed leadership of "defending its mistakes instead of correcting them" and said the institution had fallen victim to "the tyranny of the status quo."

Trump Says U.S. Intends to Sell F-35 Jet Fighters to Saudi Arabia

President Trump said Monday that the U.S. would sell advanced F-35 jet fighters to Saudi Arabia, announcing his decision the day before he meets at the White House with Crown Prince Mohammed bin Salman.

"We will be doing that. We will be selling F-35s," Trump told reporters, who didn't provide any specifics about the deal.

Deutsche Bank Targets Higher Profitability, Cost Savings Through 2028

Deutsche Bank set out targets for higher profitability and additional cost savings over the next three years, as the group seeks to scale up to position itself for shifts in the global economy.

The German lender is looking to deliver growth in revenue, profitability and returns to shareholders in the period running through to 2028, after years of restructuring under Chief Executive Christian Sewing during which it focused on stabilizing its operations, leaving past scandals behind and restoring profitability.

Novo Nordisk Cuts Prices for Obesity Drugs

Novo Nordisk slashed prices for its obesity drugs months before an agreement with the Trump administration mandating that it lower its GLP-1 prices takes effect.

The Denmark-based company on Monday said it will offer the first two monthly doses of Wegovy and Ozempic for $199 a month to those who pay in cash between now and March 31 of next year. After those two months, patients will pay the new standard monthly cash price of $349, down from a previous price of $499.

First Brands to Tap Examiner to Probe Financial Irregularities

A judge overseeing the First Brands bankruptcy case said he intends to approve the appointment of an examiner to investigate claims of potential financial irregularities at the auto-parts supplier.

Judge Christopher Lopez of the U.S. Bankruptcy Court in Houston said Monday he would authorize an examiner to oversee an investigation leading up to the company's bankruptcy. The scope could include claims of allegedly fabricated invoices, double-pledged collateral and manipulation of the company's books and records, according to court papers filed on Monday.

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Expected Major Events for Tuesday

08:00/SVK: Sep New orders in industry

08:00/CZE: Oct PPI

09:30/UK: Aug Card Spending statistics

09:30/UK: Oct Monthly Insolvency statistics

13:00/HUN: Nov Hungarian interest rate decision

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(END) Dow Jones Newswires

November 18, 2025 00:15 ET (05:15 GMT)