European Midday Briefing: Shares Lower as French Stocks Slip After Riots

MARKET WRAPS

Stocks:

European shares were lower on Monday on elevated energy prices.

Banking and defense stocks dropped, helping to push the Stoxx 600 down, while France's CAC 40 declined after riots across the country over the weekend, with banks falling sharply.

Fear that the violence in France emphasizes the difficulty the country will have in trimming its government budget deficit is encouraging sellers of the country's bonds, pushing the 10-year yield up nearly 6 basis points.

XTB said that the protests across the eurozone's second-largest economy could have financial and fiscal repercussions.

Meanwhile, oil prices fell as traders weighed a U.S. decision to waive newly imposed sanctions on Russia against persistent Middle East supply risks.

U.S. Markets:

Stock futures were pointing higher on Monday after last week's selloff in technology stocks.

Meta and Tesla will kick off earnings season after the closing bell on Wednesday, which will help investors to assess if the artificial-intelligence trade can garner enthusiasm again.

Investor will also look to the housing market data for October, scheduled to come in at 10 a.m. Eastern.

Forex:

The euro fell as concerns over France's civil unrest and massive debt load weighed.

The Swiss franc rose to a three-month high against the euro as worries over fiscal risks weighed on the single currency and boosted demand for safe-haven assets.

The dollar stabilized after reaching a two-week low Friday driven by concerns over debt-funded AI investments and reduced expectations that the Fed will raise interest rates again on October 28.

Bitcoin rose, with the recovery reflecting an improvement in liquidity expectations rather than a confirmation of a sustained reversal higher, Zaye Capital Markets said.

Bonds:

French government-bond yields rose sharply following widespread violent demonstrations in recent days, with their German equivalents slightly lower.

Treasury yields, allowing yields to remain comfortably below recent multidecade highs at the long end of the curve. Investors appear to shift their attention increasingly to the economic impact of high borrowing costs and the sustainability of debt-funded AI investments.

Energy:

Oil prices slid after President Trump waived some sanctions and tariffs on Russia, with Brent crude falling to $107.36 a barrel.

Gas

European natural-gas prices remained elevated as concerns over storage levels raised questions about the region's preparedness for winter.

Metals:

Gold prices rose, supported by falling oil prices and as traders assess the U.S. interest-rate outlook for this year.

EMEA HEADLINES

Lindt Boss to Depart, Former CEO Takes Interim Role

Lindt said Chief Executive Officer Adalbert Lechner will leave the company, as the chocolatier makes a sweeping overhaul of leadership in a bid to return to growth.

The Swiss chocolate company said Lechner would depart after 33 years at the firm. Lechner didn't immediately reply to a request for comment.

How Lego Is Getting More Adults to Tinker With Their Toy Bricks

Lego's core audience was once young boys. But in recent years the world's largest toy maker has expanded its reach, attracting more adults, teenagers and girls.

At the center of this expansion has been a strategy to tap in to people's interests and hobbies-the Danish toy-brick maker calls them "passions"-many of which cross demographic boundaries. These include personal preoccupations like bonsai trees and golden retrievers, celebrities such as pop star Olivia Rodrigo and mega events like Formula One and the World Cup.

Nearly All Volume on FIFA-Linked Prediction Market Is Circular Trading

ADI Predictstreet, a newcomer to prediction markets, made a high-profile debut during World Cup broadcasts after paying FIFA more than $150 million to become the global soccer organization's official partner.

Since late August, nearly every transaction on the platform has been made by a small network of linked accounts, according to an analysis of public data, suggesting that most of its trading volume is inauthentic.

GLOBAL NEWS

Putin Floats a Summit With Trump and Xi to Discuss Ukraine Deal

Russian President Vladimir Putin has proposed that he, President Trump and Chinese leader Xi Jinping meet next month to talk about Ukraine in an attempt to negotiate an end to the four-year conflict that would favor Moscow, said people familiar with the discussions.

The plan represents an effort by Putin to capitalize on warming ties between Trump and the Russian leader that have alarmed Ukraine and its allies in Washington and Europe. Such a summit-one without the involvement of Ukrainian President Volodymyr Zelensky-would be unprecedented and send alarm bells ringing in European capitals and beyond.

China's Economy Expanded 4.5% in Third Quarter, Powered by Exports

China's economic growth picked up in the third quarter, recovering from a three-year low as booming exports mitigate a deepening economic slowdown at home.

Gross domestic product expanded 4.5% in the period between July and September compared with the same period a year earlier, according to official data released Monday. This is up from 4.3% last quarter, which marked the slowest growth since 2022, when the Covid-19 pandemic hammered the Chinese economy.

Trump Waives Sanctions Against Russia Just Before New Law Takes Effect

President Trump is halting implementation of most of the sanctions that were to be imposed on Russia under a bipartisan bill he signed last month, drawing criticism from lawmakers including some of his allies.

The announcement came in an executive order on Friday night, and was part of a broader pivot by Trump toward courting Moscow as he seeks to end the war in Ukraine and keep energy prices under control ahead of the midterm elections.

Saudi Arabia's Military Limitations Are Being Exposed by Houthi Attacks

Deadly missile and drone attacks by Houthi rebels on Saudi Arabia's capital and oil infrastructure have exposed the limitations of the kingdom's armed forces and triggered a risky new phase of the war in Yemen for Riyadh.

Saudi Arabia has one of the largest defense budgets in the world, and its armed forces are equipped with advanced fighters and air-defense systems from the U.S. and other suppliers. But the Houthis have proved an especially resilient foe whose plentiful ground forces and indigenous missile and drone production can effectively counter Saudi military strengths, analysts said.

Write to nina.kienle@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 19, 2026 05:13 ET (09:13 GMT)