EMEA Morning Briefing: U.S. Stocks Advance Toward Records

MARKET WRAPS

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No major economic or corporate trading updates expected

Opening Call:

European stock futures were mixed early Tuesday. Asian stock benchmarks were mostly higher; the dollar weakened; Treasury yields were flat; while oil futures fell and gold strengthened.

Equities:

European stock futures were mixed, after U.S. stocks advanced broadly, sending the S&P 500 to the brink of a record.

"Risk-on sentiments are dominating Wall Street," said José Torres, senior economist at Interactive Brokers, noting that volatility-protection instruments and other hedges are seeing less demand. The Cboe Volatility Index, also known as Wall Street's fear gauge, fell to a 12-month low.

Forex:

The U.S. dollar has had a rough go of it in 2025-but one recent development indicates that the beaten-down buck could be due for a bit of a reprieve in early 2026.

Late last week, the ICE U.S. Dollar Index DXY, a measure of the greenback's value against a basket of six rival currencies, saw its 50-day simple moving average cross above its 200-day moving average, according to Paul Ciana, a technical strategist at BofA Global Research. This is a bullish technical signal known as a "golden cross."

"Once a golden cross has occurred, the dollar tends to be higher between 20 and 60 trading sessions later," he said.

Bonds:

A softer-than-expected inflation reading for November, along with the expected new leadership at the Federal Reserve pushing for deeper rate cuts, have driven short-term Treasury bond yields sharply lower over the past two weeks.

Further pressure has been building on shorter-term Treasury bill yields as the Fed begins its monthslong effort to ease liquidity concerns in the banking sector through a program of regular monthly purchases expected to last until late spring.

Collectively, the moves have triggered a so-called "bull steepening" of the U.S. Treasury yield curve, where short-term yields fall faster than longer-dated ones. "There's a concern that the yield curve is steepening too fast, and that the increase in the 10-year yield in Japan could continue to push up yields in the long end of the curve in the U.S. and globally," said Justin Bergner, portfolio manager at Gabelli Funds.

Energy:

Oil futures edged lower on a likely technical correction after WTI and Brent crude oil futures settled higher on Monday. However, price declines in oil futures may be limited given the continuing U.S.-Venezuela tensions. There are supply worries, IG's Axel Rudolph said. "The U.S. Navy continues to intercept Venezuelan oil tankers in order to choke off revenues for the country's government," the senior technical analyst added.

Metals:

Gold hit a record high amid rising geopolitical risks that typically enhance the safe-haven appeal of the precious metal.

Prospects for a cease-fire in Eastern Europe seem increasingly remote despite diplomatic efforts, Naga's Frank Walbaum said. Tensions in the Middle East are elevated, tensions between China and Japan remain unresolved, while friction between the U.S. and Venezuela has escalated, the market analyst said.

Although markets are on edge, record-high prices might not find support as the holiday-shortened week progresses. "I think it is a bit much to expect Venezuela safe-haven flows to carry gold to the next level," said Robert Yawger of Mizuho Securities USA.

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Copper strengthened in Asian trading hours. Although spot prices remain elevated, overall demand is only moderate, as buyers show weak willingness to take delivery, Nanhua Futures analysts said. Prices remain volatile, and traders should closely monitor trading volume to gauge the market's direction, they added.

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Iron ore futures were down. Prices could remain range-bound in the near term, Nanhua Futures analysts said. Improved macro expectations are driving valuation repair. However, iron ore shipments remain at elevated levels, capping upside price potential, they noted.

TODAY'S TOP HEADLINES

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.

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.

How a String of Hacks Embarrassed Cyber Powerhouse Israel

TEL AVIV-Israel is known worldwide as a cyber powerhouse. Yet hackers linked to its biggest adversary, Iran, have managed to pull off a series of successful breaches by using known vulnerabilities to attack institutions that aren't as well-defended as the country's critical infrastructure.

Israel requires a high standard of cybersecurity for critical infrastructure, such as its electric utility, but not for less important bodies and institutions such as hospitals, which have fallen victim to some of the attacks linked to Iran. Some current and former Israeli cyber officials and experts say Israel could better protect itself if the Knesset, the Israeli parliament, passed a cyber law that would expand the rules beyond critical infrastructure.

Mercedes Settles With States Over Alleged Diesel Emissions Cheating

Mercedes-Benz settled with state attorneys general across the U.S. who said an investigation found it used emissions-cheating software.

Attorneys general from 48 states, the District of Columbia and Puerto Rico said Monday that the company violated environmental and consumer protection laws to secure emissions certifications that it didn't qualify for.

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.

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.

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Expected Major Events for Tuesday

06:00/FIN: Nov Labour force survey, incl unemployment

07:00/EU: Nov New Passenger Car Registrations in Europe statistics (EU27 + EFTA3)

07:00/SWE: Nov PPI

07:00/NOR: Nov Credit Indicator C2

07:00/DEN: Nov Central Government Finance & Debt

07:00/GER: Nov Foreign trade price indices

08:00/SPN: 3Q Final GDP

08:00/CZE: Dec Business cycle survey (consumer/business confidence)

08:00/SPN: Nov PPI

09:00/ICE: Nov Labour Force Survey

09:00/ITA: Nov Foreign Trade non-EU

09:00/POL: Nov Unemployment

10:00/MLT: Nov PPI

10:30/BEL: Dec CPI

16:59/HUN: 3Q Balance of Payments

16:59/SPN: 3Q Quarterly Balance of Payments

16:59/BEL: Nov PPI

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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 00:23 ET (05:23 GMT)