European Midday Briefing: Investors Await Delayed U.S. Data

MARKET WRAPS

Stocks:

European shares were up on the last full trading day before the Christmas break.

Investors' focus turned to a batch of U.S. data that could provide further cues on the Federal Reserve's next policy move.

The delayed third-quarter U.S. economic growth report and durable goods orders for October will be released at 1330 GMT and the Conference Board's consumer confidence indicator for December will be published at 1500 GMT.

Any weakness in the data could add to Fed rate-cut expectations, though thin trading ahead of the year-end holidays could also prompt volatility.

In Europe, concerns about the potential for an interest-rate increase in the eurozone eased this week.

Media reports of comments by European Central Bank executive board member Isabel Schnabel that "no interest-rate increase is to be expected in the foreseeable future" reassured investors, Deutsche Bank said.

U.S. stock and bond markets close early Wednesday and are closed Thursday for the Christmas holiday.

U.S. Markets:

Stock futures were muted after starting the holiday-shortened trading week on a high and sending the S&P 500 to the brink of a record.

Gold continued its upward trend on Tuesday, rising above $4,500 a troy ounce and taking gains so far this year to about 71%. Precious metals hit record highs on Monday on the back of rising U.S.-Venezuela tensions and U.S. interest-rate cut expectations.

Forex:

The dollar hovered near a one-week low ahead of a string of U.S. data.

The euro rose to a one-week high against a weaker dollar.

Sterling rose to a near 12-week high against the dollar and a two-week high against the euro amid reduced liquidity during the holiday-shortened trading week.

Looking at sterling's performance, one could barely tell the Bank of England cut interest rates last week and that several weak economic indicators were released with more weakness likely following a growth-negative budget , Swissquote said.

Bonds:

Yields on eurozone government bonds fell, reversing some of their sharp gains on Monday which took 10-year Bund yields to their highest since March .

Treasury yields fell. Yields rose across the board on Monday, tracking a sharp rise in Japanese government bond yields while concerns grew that rising oil prices could reignite inflation .

Energy:

Oil prices were flat, having settled higher Monday and marking its largest one-day dollar and percentage gain since Oct. 23.

Metals:

Gold prices continued to gain. The precious metal's move toward $4,500 a troy ounce indicates the market's new comfort with higher prices, said Pepperstone.

"Lower rates and a weaker dollar environment naturally improve the relative appeal of precious metals ," it added.

Comex gold futures were rising and entering "uncharted" territory, based on technical analysis, RHB Retail Research said.

Copper

Copper rose. Spot prices remained elevated, but overall demand is only moderate, as buyers show weak willingness to take delivery, Nanhua Futures said.

Iron

Iron ore futures were lower. Prices could remain range-bound in the near term, Nanhua Futures said.

EMEA HEADLINES

Pill Version of Wegovy Is Approved for Use in the U.S.

U.S. regulators approved the first GLP-1 weight-loss pill-a tablet formulation of Novo Nordisk's Ozempic and Wegovy-ushering in a new era of the obesity-drugs revolution that is expected to broaden their use.

Novo Nordisk said Monday it plans to start selling the new pill in the U.S. in early January, with a cash price of $149 a month for the starting dose.

Italy Competition Authority Fines Ryanair Over Travel Agencies' Bookings

The Italian Competition Authority fined budget airline Ryanair 255.8 million euros ($300.9 million) over its treatment of travel agencies.

Italy's AGCM said Tuesday that the Irish company abused its dominant position by hindering travel agencies' sales and the ability of online players to attract internet traffic. The authority said Ryanair's conduct weakened competition from agencies.

Samsung to Acquire ZF Friedrichshafen's ADAS Unit for Nearly $1.8 Billion

Samsung Electronics plans to acquire the advanced driver-assistance systems business of Germany's ZF Friedrichshafen, stepping up its push into vehicle components.

Samsung said Tuesday that its auto-component and audio subsidiary, Harman International, will take over ZF's ADAS unit for 1.5 billion euros, equivalent to $1.76 billion, to expand its "technology foundation to deliver safer, more intelligent, and more intuitive in-vehicle experiences."

Trump Appointment of Greenland Envoy Draws Angry Response From Denmark

President Trump's appointment of a special envoy for Greenland drew an angry response from Denmark and reignited its concerns about U.S. efforts to control the strategic Arctic territory.

Trump on Sunday appointed Louisiana Gov. Jeff Landry as envoy for Greenland, an autonomous island that is part of the Kingdom of Denmark, saying on social media that Landry "understands how essential Greenland is to our National Security."

GLOBAL NEWS

GDP Data Should Be Strong. How Strong Is the Question.

The U.S. economy grew at a healthy clip in the third quarter despite very weak labor conditions in the third quarter, according to projections from economists.

The Bureau of Economic Analysis releases the delayed initial estimate of the inflation-adjusted gain in gross domestic product during the quarter at 8:30 a.m. Eastern on Tuesday. The report was originally scheduled for Oct. 30; the government shutdown forced the delay.

Retail Stocks Could Get a Tax Refund Boost in 2026

The pandemic was great for introverts, sourdough bread enthusiasts, and retail stocks. The One Big Beautiful Bill could provide the biggest boost to retail stocks since then, even if it leaves the wall flowers and baking enthusiasts out in the cold.

As awful as the pandemic was for just about everyone, it could be considered nirvana for retailers. With few entertainment options available, consumers, flush with cash from stimulus checks, were quick to spend the dough on stuff they didn't really need-sneakers, designer handbags, flat-screen TVs, you name it. The State Street SPDR S&P Retail exchange-traded fund gained 42% in 2020 and 43% in 2021. Retail stocks collapsed in 2022, and they have been laggards ever since

The AI Boom Is Making Real-Estate Investors Rich-and Exposing Them to Risk

Commercial real-estate investors are becoming increasingly aligned with the AI boom-enabling them to rake in profits on the upside, but also making their funds more vulnerable to a correction in AI that disrupts demand for data centers.

Spending on data-center construction looks poised to surpass office-building construction as soon as next year, according to U.S. Census Bureau data.

U.S. Targeting Oil Tankers in Bid to Stymie Global Black Market

The U.S.'s pursuit of oil tankers around Venezuela is part of a new legal strategy under the Trump administration to seize ships that transport black market oil around the world, according to Justice Department officials.

The fresh approach has been seen in recent days by the Coast Guard's pursuit of the Bella 1, a sanctioned oil tanker whose crew refused to be boarded on Sunday. The Bella 1 is the third tanker to be targeted after the U.S. took control of two other very large crude carriers, the Skipper and the Centuries.

U.S. Bans New China-Made Drones, Sparking Outrage Among Pilots

U.S. officials have made efforts for nearly a decade to ban popular China-made drones used by government agencies and hobbyists alike, citing national-security concerns. This week, Washington is getting what it wants.

The Federal Communications Commission on Monday banned all drones and critical components made in a foreign country, and all communications and video-surveillance equipment from major Chinese drone manufacturers SZ DJI Technology and Autel Robotics. The designation means the companies, their subsidiaries and partners won't be able to import, market or sell new drone equipment in the U.S.

Trump Administration Halts All Offshore Wind Projects

The Trump administration Monday halted the construction of all U.S. offshore wind projects, a sweeping move aimed at hobbling one of the president's least favorite industries.

The Interior Department said it has paused the federal leases for five projects in the works from Massachusetts to Virginia "due to national security risks identified by the Department of War in recently completed classified reports." It is the most significant action the administration has taken thus far against the burgeoning U.S. business, which already has faced financial setbacks in recent years because of soaring costs.

Mass Recall of U.S. Ambassadors Leaves Unprecedented Global Vacancies

The Trump administration abruptly recalled nearly 30 career ambassadors at U.S. embassies around the world, according to multiple officials familiar with the matter, in a move that senior officials said is aimed at better aligning the State Department with the president's foreign-policy agenda.

The State Department in recent days told the ambassadors they need to return to Washington, giving them until mid-January to vacate their posts. Before the directive, the U.S. already had around 80 vacant ambassador spots worldwide, a shortfall that diplomats said leaves a gap in American diplomatic capabilities.

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

December 23, 2025 05:16 ET (10:16 GMT)