European Midday Briefing: Shares Up as AI Stocks Gain

MARKET WRAPS

Stocks:

European shares were up Wednesday as technology stocks gained.

AI-linked stocks were on firmer ground in Europe after ASML raised its guidance again on surging demand.

However, the AI trade is no longer just about revenue growth, Tickmill Group said. "Investors are increasingly focused on whether the supply chain can meet demand without triggering margin pressure, overinvestment or financing strains."

Oil prices were mixed after Yemen's Houthi militants struck a building at the headquarters of Saudi Arabia's state oil giant Aramco, while a series of attacks against shipping in the Strait of Hormuz continues to keep the geopolitical risk premium high.

The International Energy Agency said global diesel supplies are expected to remain tight well into next year as Middle East fuel exports struggle to recover despite a recent rebound in crude shipments. For the day ahead, U.S. inflation data will be in focus, while European Central Bank president Christine Lagarde is set to speak.

U.S. Markets:

Stock futures were up Wednesday as investors awaited inflation data later in the day.

The consumer price index for September is set for release today, with expectations of a big 0.6% jump in prices but just a 0.2% rise on the core, which omits food and energy.

Forex:

The dollar fell slightly against a basket of currencies, tracking a decline in Treasury yields ahead of the release of September consumer-price inflation data today.

Bonds:

Eurozone government bond yields fell in opening trade, tracking lower Treasury yields. "Bonds are given some respite after their weeks-long [price] decline," KBC Bank said.

Treasury yields fell across the curve on Wednesday.

"We expect U.S. Treasury yields to decline slightly over the next 12 months," DWS said. "Alongside attractive yields, this creates scope for capital gains." Energy:

December Brent crude futures fell 0.9%, while WTI for November delivery edged up 0.4%. Both benchmarks were down more than 2% in early trading.

Metals:

Gold prices continued to trade in a narrow range as investors awaited the release of U.S. consumer price index data for cues on the Fed's monetary policy path.

Morgan Stanley sees bullion reaching $5,000 an ounce by the second quarter of 2027.

Iron

Iron ore prices were lower in early Asian trade as demand expectations remained weak. Poor profitability at Chinese steel mills fuels expectations of further production cuts, weakening iron-ore demand as a result, Baocheng Futures said.

EMEA HEADLINES

Chip-Machine Supplier ASML Boosts Guidance for Third Time on Surging AI Demand

ASML Holding improved its annual forecasts for the third time this year and said it was looking at ways to boost production of its semiconductor-making machines even more as the race to build artificial-intelligence infrastructure fuels demand for advanced chips.

The Dutch group is projecting annual sales between 44 billion euros and 45 billion euros, equivalent to a range of $49.27 billion to $50.39 billion, compared with prior guidance of 43 billion euros to 45 billion euros. Meanwhile, its gross margin-a closely watched metric of pricing power and profitability-should come in at roughly 56%, compared with a previous guidance range of 54% to 56%.

Houthi Strike Hits Building at Saudi Aramco Headquarters

Yemen's Houthi militants struck a building at the headquarters of Saudi Arabia's state oil giant in the eastern city of Dhahran, people familiar with the matter said, as fighting intensified between the kingdom and the Iran-backed group.

The kingdom's Energy Ministry said a Saudi Aramco administrative building had been targeted leading to a limited fire. The missile hit an office building at the complex and damaged a number of floors, the people said. No fatalities or injuries were reported.

EU Accepts Sanofi's Concessions to Settle Antitrust Probe Over Vaccine Marketing

The European Union's antitrust body said it accepted Sanofi's concessions to end a competition investigation into the French drugmaker's marketing campaign for a flu vaccine.

The European Commission-the bloc's executive arm and competition enforcer-said Wednesday that Sanofi's offer to rectify the potential effects of its past messages on a rival flu shot made by Australia's CSL and refrain from any communication casting doubt about its performance would address its concerns. Those commitments will become legally binding for Sanofi, it added.

Galderma to Buy ZO Skin Health for $1.5 Billion

Switzerland's Galderma Group agreed to buy ZO Skin Health from Blackstone, the Obagi family and other shareholders for $1.5 billion, including debt, in a move to expand its premium skincare portfolio.

The company behind skincare brands Cetaphil and Alastin said Wednesday that the all-cash acquisition of California-based ZO Skin Health would strengthen its consumer business and support its long-term growth ambitions.

GLOBAL NEWS

Oil Prices Rise as Traders Weigh Saudi Aramco Attack Report, Hormuz Shipping Risks

Oil prices rose Wednesday as traders weighed persistent Middle East supply risks after a reported attack on a Saudi Aramco building and fresh strikes on tankers around the Strait of Hormuz.

December Brent crude futures rose 0.2% to $105.92 a barrel, while December West Texas Intermediate futures gained 0.2% to $93.39 a barrel. The gains followed a mixed session Tuesday, when Brent settled lower while front-month U.S. crude edged higher.

Chinese Exports Soar in September

China's export growth accelerated in September, beating market expectations and potentially threatening to heighten trade tensions with major partners.

Exports rose 36.3% from a year earlier in September, accelerating from August's 25.0% increase, according to data released Wednesday by the General Administration of Customs. The reading topped the 25.0% increase forecast by economists in a Wall Street Journal survey.

Global Diesel Squeeze to Drag Into 2027, IEA Says

Global diesel supplies are expected to remain tight well into next year as Middle East fuel exports struggle to recover despite a recent rebound in crude shipments, the International Energy Agency said.

Supply fell by 1.7 million barrels a day in the third quarter, as the Iran war curtailed flows through the Strait of Hormuz-a critical waterway carrying large volumes of Gulf oil and refined products-while Russia, one of the world's largest exporters of refined fuels, had to cut output due to Ukrainian attacks on its refineries.

The Houthis Are Building an Advanced Missile With Chinese Parts

Houthi militants are attempting to produce their own advanced medium-range ballistic missiles using Chinese-delivered parts, a new report shows, a technological advance that would raise the threat posed by the Iran-backed group.

The Houthis shipped in from a Chinese supplier a range of components needed to make a version of one of Iran's most powerful weapons, the Kheibar Shekan Iranian precision-guided missile, said the report by Conflict Armament Research, a group that works in conflict zones and reports on the use of weapons and their supply chains. The Houthi missile would have a range up to about 1,200 miles, putting all of Saudi Arabia and Israel within reach.

Trump Can't Reinstate White House Ban on CNN, Politico and MS NOW, Judge Rules

The Trump administration must maintain White House access for reporters from CNN, MS NOW and Politico while a legal challenge plays out over President Trump's attempt to ban the news outlets, a federal judge ruled on Tuesday.

Judge Timothy Kelly in Washington, D.C., granted the outlets' request for a preliminary injunction to block the administration from enforcing the ban while their litigation is ongoing.

Why U.S. Airstrikes Are Failing to Stop the Global Cocaine Boom

BUENAVENTURA, Colombia-The Trump administration's bombing campaign against cocaine-smuggling speedboats is starting to have an impact on the global drug trade-but not necessarily in a good way.

Thirteen months into the initiative, Colombian navy divers are detecting greater use of "parasites"-metal modules packed with cocaine that traffickers bolt onto the hulls of freighters preparing to steam out of this country's largest Pacific port.

Inside Kimberly Guilfoyle's Final Days as Ambassador to Greece

Kimberly Guilfoyle was scrambling to save her job.

As damaging revelations piled up, President Trump's ambassador to Greece started dialing up administration officials and people close to the president, playing down Wall Street Journal reporting that suggested she was using her position for personal gain.

Write to priscila.barrera@wsj.com

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

(END) Dow Jones Newswires

October 14, 2026 05:14 ET (09:14 GMT)