European Midday Briefing: Shares Mostly Higher as AI-Stocks Largely Strengthen

MARKET WRAPS

Stocks:

European shares were mostly higher on Friday as AI-linked stocks largely strengthened, helping the Stoxx 600 to rise.

Oil prices fell as traders weighed plans from the International Energy Agency to accelerate emergency oil-stock releases against persistent Middle East supply risks and uncertainty over shipping through the Strait of Hormuz.

Meanwhile, higher interest rates and relentless inflation in the U.S. and elsewhere have upturned the way Moody's assesses risk.

"We believe we are in a new macro regime," Moody said.

Economic Insight

In the U.K., the Bank of England is questioning whether the inflationary impact from the war in the Middle East on higher energy prices is passing through into broader price growth, Governor Andrew Bailey said.

Furthermore, the country's energy markets regulator is looking into a proposal to bring back a mechanism designed to protect suppliers from volatile swings in wholesale energy prices.

U.S. Markets:

Stock futures were pointing Friday to a quiet end to a volatile week as Federal Reserve Chairman Kevin Warsh declined to push back against expectations the central bank will pause on interest rates later this month.

"I don't believe in saying now what I might do at the meetings we have in the balance of this year," he said.

Later today the market is expecting data from the Industrial Production and Capacity Utilization for September, as well as Canada Housing Starts, also for September.

Forex:

The sterling rose slightly. U.K. fiscal risks continue to pose a potential headwind to the currency even as encouraging data boosts expectations for the BOE to raise interest rates, Commerzbank said.

The dollar fell along with Treasury yields as concerns about the sustainability of debt-funded AI investments weighed.

Bitcoin stabilized after reaching a four-week low on Thursday driven by U.S. data boosting expectations for further interest-rate rises by the Federal Reserve.

Bonds:

Yields on eurozone government bonds were steady to slightly lower, helped by lower oil prices.

"After markets initially rallied on yesterday's risk-off in tech stocks and lower oil, the tides turned in the afternoon with oil rising sharply and bonds starting to sell off," Commerzbank said.

Treasury yields stabilized, as investors increasingly focused on the economic impact of high borrowing costs and away from inflation.

Energy:

Oil prices fell but remained on track for weekly gains, while traders weighed supply risks.

Metals:

Gold prices rose on a softer U.S. dollar, while comex gold futures were likely consolidating, the daily chart suggests, RHB Retail Research said.

EMEA HEADLINES

Schneider Electric Boosts Outlook Again After Data-Center Demand Lifts Sales

Schneider Electric lifted its annual targets for the second time this year after data-center orders kept flowing in, boosting sales for the third quarter.

The French engineering group said Friday that it is targeting organic growth in adjusted earnings before interest, taxes and amortization to range from 18% to 21% this year, up from a previous goal-which had been upgraded in July-of between 14% and 19%.

Nordex Shares Jump on Earnings Growth, Guidance Raise

Shares in German wind-turbine manufacturer Nordex jumped after it raised its full-year margin guidance and flagged improved third-quarter profitability.

In early morning trade, shares were 15% higher at 39.96 euros, taking their full-year performance nearly 40% higher.

Inside Porsche's Revival Bid: Pricier Cars, Tougher Bonuses and Less Remote Work

Porsche's new chief executive Michael Leiters had an unfamiliar message for staff: Bonuses should reflect performance.

At employee meetings this summer, Leiters said the sports-car company's annual payouts-for years among the most generous and reliable in the German car industry-weren't a given, and they would depend on a recovery in the company's profit for which everyone was individually responsible, according to attendees. One way to achieve this, he said: Staff needed to be in the office more.

GLOBAL NEWS

Stock Futures, Treasurys Steady as Markets Take Breather

Stock futures inched higher and Treasurys were steady, as markets calmed after volatile trade Thursday.

Nasdaq futures inched up 0.1% after the index flipped sharp intraday losses Thursday to end the session higher. Artificial-intelligence stocks remained fragile, however, as chip makers slip in premarket trade. CoreWeave, whose soaring borrowing costs were one force behind investors' latest flight out of AI, traded down 2.5% premarket.

Ukraine Strikes Russian Refinery After Moscow Breaks Trump's Energy Ceasefire

KYIV, Ukraine-Ukraine resumed strikes on Russian refineries Thursday, after accusing Moscow of violating President Trump's ceasefire on energy targets, and as its military regained full access to Starlink following a mysterious disruption the day before.

Long-range drones, which don't require Starlink connections, attacked the Ryazan oil refinery, located southeast of Moscow, sparking a fire, Russian officials said. The strike ended a dayslong pause in Ukrainian attacks on Russian energy infrastructure, during which Moscow repeatedly violated the Trump-ordered truce.

Five Takeaways From Maine's Senate Debates

Sen. Susan Collins and Troy Jackson wrapped up their fourth and final Senate debate in Maine on Thursday, tangling over President Trump, the high cost of fuel and the Supreme Court. The Senate campaign is among the most competitive in the nation and the outcome could play a major role in determining which party controls the chamber next year.

Collins, a Republican, is seeking her sixth term and is the lone Republican senator running in a state carried by former Vice President Kamala Harris in the 2024 presidential election. Jackson, a Democrat, is a former state Senate president who became the party's nominee in an unusual state Democratic convention during the summer following the implosion of Graham Platner's candidacy.

Lutnick Throws the Future of U.S.-Mexico Trade Talks Into Further Doubt

Progress toward a U.S.-Mexico tariff deal has stalled after opposition from Commerce Secretary Howard Lutnick, people familiar with the talks said, the second time that he has had a hand in upending advanced negotiations with a North American partner.

The U.S. and Mexico had been zeroing in on a deal that would reduce U.S. levies on steel, aluminum and automobiles in exchange for a series of concessions from Mexico, these people said, paving the way for further talks on renewing the U.S.-Mexico-Canada Agreement. Mexican officials and many corporate executives expressed optimism that a deal was close, they said.

The Defector: A Russian Officer Turned Against His Country and Helped Ukraine Kill Hundreds

Lt. Lev Stupnikov pulled his truck up to the edge of a field in eastern Ukraine on a frigid February morning, followed by a convoy of senior Russian army officials coming to observe a training exercise near the front line.

For several consecutive days, Russian infantrymen, medics and officers had been drilling on the frozen mud, preparing for an offensive on the nearby city of Vuhledar. The only cover was a line of bare trees.

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(END) Dow Jones Newswires

October 16, 2026 05:17 ET (09:17 GMT)