EMEA Morning Briefing: U.S. Inflation Data Awaited

MARKET WRAPS

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Trading update for ASML

Opening Call:

European stock futures rose early Wednesday. Asian stock benchmarks largely advanced; the dollar and Treasury yields edged lower; oil and gold futures rose.

Equities:

Stock futures point to a higher open in European markets on Wednesday, as attention turns to key U.S. inflation data.

New York Fed President John Williams said Tuesday that it may be appropriate to have one more rate hike this year, and left open the possibility of further boosts in 2027.

Regarding the inflation outlook, Williams said the one thing he is watching the closest is artificial-intelligence-driven demand, but he doesn't see other emerging drivers of inflationary pressure.

Forex:

U.S. CPI data "could influence market pricing for the timing of the Fed's next [rate] increase," said CBA's Carol Kong.

"The risk is the core CPI surprises to the upside because of strong consumer demand and higher costs, pushing up market pricing of an October Fed hike and the USD," she added.

Bonds:

High government bond yields, combined with resilient economic growth, calls for a fixed-income strategy that reduces duration while leaning into corporate credit, said Morgan Stanley's Jim Caron.

"What I'm trying to reduce is the interest rate sensitivity and I'm trying to amplify the credit risk component of the portfolio," he said. Caron said tax-exempt municipal bonds are also attractive, supported by strong demand from buy-and-hold investors.

Energy:

Oil gained amid ongoing Middle East tensions. "Conflict between Saudi Arabia and the Iran-backed Houthi rebels in Yemen is threatening to escalate following the rebels' attacks on the airport in the Saudi capital," Commerzbank Research's Carsten Fritsch said.

Also, transit through the Strait of Hormuz "carries the risk that Iran will attack ships, something that has been happening with increasing frequency recently," the commodity analyst added.

Metals:

Gold rose early Wednesday. Investors are closely watching the U.S. CPI data due later Wednesday. Markets are also focusing their attention on Fed Chairman Kevin Warsh's speech on Friday, said Critical Metals CEO Tony Sage. Copper prices inched higher in Asian trade, thanks to tightening inventories outside the U.S. and geopolitical risks, Everbright Futures said.

Weak spot demand and uncertainty over U.S. refined copper import tariffs are keeping prices rangebound. Downstream buyers remain cautious about restocking at high prices, with spot premiums easing sharply from preholiday levels despite remaining elevated. Uncertainty over U.S. tariff policy continues to constrain market flows, keeping copper prices in a volatile range until the supply dynamics shift, Everbright added. Iron ore prices fell in Asia 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.

The average daily molten iron output and consumption of imported iron ore last week are at low levels compared to recent years, Baocheng said.

TODAY'S TOP HEADLINES

IMF Warns Governments Against Reliance on Short-Term Debt

Governments in advanced economies such as the U.S. should be wary of relying too heavily on short-term debt, since it exposes them more immediately to higher borrowing costs when inflation surges, the International Monetary Fund said Wednesday.

Yields on longer-term borrowing have risen over recent years, partly a reflection of a steady increase in debt sales and partly the consequence of a decline in demand from buyers such as central banks that favor extended maturities.

One More U.S. Interest-Rate Increase May Be Appropriate, Fed's Williams Says

It may be appropriate for the Federal Reserve to raise interest rates once more this year, according to New York Fed President John Williams, but he left open the possibility of further boosts in 2027.

"I haven't changed my view that it may be appropriate to have one more rate hike," Williams said to Bloomberg on Tuesday. "I don't think at this time I have any reason to believe that we would need to do more. But you asked 2027, we'll have to see," he added.

Failure of Australia's Largest IPO in Decades Sends Tremors Through AI Trade

Just a few months ago, companies connected to the AI business couldn't go public fast enough, as far as investors were concerned. Suddenly, the IPO waters are looking a lot less inviting.

Rising interest rates, a jumpy stock market and heightened political uncertainty are creating a dicey outlook for tech companies that had been aiming for a fourth-quarter public offering, causing some to reconsider their timing.

OpenAI Engineer Allegedly Hid Toilet Paper-Wrapped Mic in Conference Room

SAN FRANCISCO-An OpenAI engineer visited a familiar conference room in one of the company's San Francisco office buildings last week-and peered behind a television set mounted to a wall.

Abdulrahman Alfozan had spent weeks scoping out the room, which could only be reserved by executives at the artificial-intelligence company and their assistants, federal prosecutors allege. The conference room was often used for leadership meetings, briefings with government officials and business partners as well as top-secret research and product discussions.

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.

John Ternus Takes Next Big Swing as Apple CEO With HomeView Tablet

Part of John Ternus's strategy to keep Apple's momentum rolling is coming into view: Expand the product line. A smarter Siri would help with that push.

Apple already has announced the new, foldable iPhone Duo, which goes on sale in 10 days, and it is expected to release new variants of other core products soon. With his new smart home push, Apple's new chief executive has a chance to reinvigorate a stalled category and draw consumers deeper into the Apple ecosystem.

ASML Is About to Kick Off Tech Earnings. It's a Big Deal for Chip Stocks.

ASML Holding will kick off earnings season for technology companies on Wednesday before the U.S. market opens. The Dutch chipmaking equipment company could please investors with a hike to prices for its tools as demand for processors booms.

ASML is Europe's largest company by market value and holds a near monopoly on lithography machines, which are crucial for manufacturing the most advanced semiconductors. Its American depositary receipts are up nearly 80% in the past 12 months but a price boost could add even more momentum.

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Expected Major Events for Wednesday 05:00/FIN: Sep CPI

06:00/GER: Sep WPI

06:00/SWE: Sep CPI

07:00/SVK: Aug Employment and average monthly wage in selected branches

07:00/SVK: Aug Turnover in selected branches of economy, incl Industry & Construction

07:00/SPN: Sep CPI

08:00/CZE: Aug Monthly Balance of Payments

08:00/POL: Aug Merchandise trade

08:00/FRA: Oct IEA Oil Market Report

08:00/POL: Sep CPI

08:00/BUL: Sep CPI

12:00/POL: Aug Balance of Payments

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(END) Dow Jones Newswires

October 14, 2026 00:16 ET (04:16 GMT)