EMEA Morning Briefing: Tech Jitters Persist

MARKET WRAPS

Watch For:

Germany CPI; trading updates for Whitbread, Publicis, BP, Givaudan

Opening Call:

European stock futures were mixed after Asia stocks broadly fell. The yield on U.S. Treasurys were lower, the dollar weakened. Gold rose and oil fell.

Equities:

European equity futures were mixed as geopolitical tensions continued to sap risk appetite across global markets.

Overnight in the U.S., stocks were particularly headline-driven with bond markets closed, said Jonathan Corpina, a senior managing partner at Meridian Equity Partners.

While investors were hopeful about progress overseas during the weekend, Monday's developments only highlighted the current geopolitical volatility, Corpina said.

"We're going to continue to have volatility in the markets and in the headlines coming out of the Middle East because at this point we're all focused on which direction that's going to go," he said.

Forex:

The U.S. dollar weakened, though tensions between Russia and Ukraine continued to drive safe-haven demand for the greenback.

Russia continued striking Ukraine's energy infrastructure despite U.S. President Trump's announcement of an "energy ceasefire," said CBA's Kristina Clifton.

Also, "Ukraine's President Zelenskyy confirmed that Russia had not honored the truce, and Ukraine would continue retaliating," the senior economist and senior currency strategist noted.

Bonds:

The yield on U.S. Treasurys were lower. Municipal bonds in the U.S. continue to offer advantages relative to Treasurys despite recent choppiness, according to a Nuveen report.

Yields have risen as investors harvest losses and swap into ETFs, among other factors, Nuveen said. Supply keeps rising, but new issues have been largely absorbed.

"We believe the recent underperformance, largely due to volatility and technical pressures, continue to present a compelling opportunity for investors with cash on the sidelines to lock-in elevated yields and attractive valuations." the firm said.

Energy:

Oil prices fell, amid a possible technical correction after solid gains overnight.

However, downward pressure on the futures is likely to be tempered by ongoing tensions in the Middle East. "Tensions were heightened as Saudi Arabia said it was dealing with new drone and missile assaults on Monday," ANZ Research analysts said.

"Rising attacks on tankers in and around the Strait of Hormuz are again constraining oil flows from the Persian Gulf," the analysts added.

Metals:

Gold prices were higher. Investors were mainly in a wait-and-see mode ahead of major U.S. bank earnings and inflation data this week, said Peter A. Grant, vice president and senior metals strategist at Zaner Metals.

The U.S. CPI data is expected to offer clues about the Federal Reserve's next interest rate move.

Markets will also parse updates on other U.S. economic data and a heavy slate of Fed speakers to gauge the likelihood of further Fed rate hikes this year, Grant said.

Copper prices were lower, with uncertainty over U.S. tariff policy weighing on market sentiment despite tightening concentrate supply, said Everbright Futures analysts.

Copper treatment charges have plunged sharply, squeezing smelter margins and pressuring refined copper output, while imports have also weakened, the analysts added.

High prices are also curbing restocking appetite, with spot premiums narrowing amid subdued downstream buying, they said. Prices are likely to remain volatile, with the near-term direction hinging on greater clarity over U.S. trade policy, they added.

TODAY'S TOP HEADLINES

IMF Warns of Global Economic Setbacks as Shocks Test Resilience

The global economy has been remarkably resilient in the face of the worst energy shock in decades, but if borrowing costs and inflation go unchecked, a sharp slowdown looms, the International Monetary Fund said.

In its latest World Economic Outlook, the IMF forecast global growth of 3.1% this year. That was unchanged on its April forecasts, although a slightly more bullish view than an update provided in July as it digested new macroeconomic developments globally.

LVMH's Creaking Sales Cast Pall Over Luxury's Fragile Recovery

French luxury giant LVMH said sales growth slowed, putting the brakes on a long-awaited recovery in Europe's struggling luxury-goods industry.

The Paris-based group, owner of a stable of fashion, jewelry and champagne brands that constitutes a bellwether for the wider sector, made sales of 18.50 billion euros ($20.72 billion) between July and September, it said Monday. That marks organic growth of just 1% from the same period last year, slowing from the 3% increase the company booked over the second quarter.

Europe's Biggest Auto Show Is Now Dominated by Chinese Cars

PARIS-Li Auto, a Beijing-based luxury carmaker, used this city's auto show to show off a car with massage seats at the front, a 21-inch screen for passengers in the back and a unit in the central console that can keep your energy drink cool or your coffee warm.

Meanwhile, BYD, the world's bestselling electric-vehicle brand, took the veil off an SUV for Europe that can fill up much of a battery in five minutes.

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Expected Major Events for Tuesday 04:30/NED: Sep CPI

05:00/FIN: Aug Balance of Payments

06:00/ROM: Sep CPI

06:00/GER: Sep CPI

06:30/HUN: Aug Construction

07:00/CZE: Sep CPI

07:00/SVK: Aug Construction production

07:00/TUR: Aug Balance of Payments

10:00/POR: Sep CPI

16:59/GER: Aug Balance of Payments

16:59/AUT: Oct OPEC Monthly Oil Market Report

23:01/UK: Sep UK Nations and Regions Growth Tracker

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(END) Dow Jones Newswires

October 13, 2026 00:15 ET (04:15 GMT)