EMEA Morning Briefing: Widespread Protests in France Weigh on Sentiment

MARKET WRAPS

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Opening Call:

European stock futures traded lower early Monday. Asian stock benchmarks were mixed; the dollar was flat; Treasury yields were down; while oil futures weakened and gold strengthened.

Equities:

Stock futures point to a lower open in Europe, as France over the weekend confronted some of the worst rioting to sweep the nation in years.

In a country with a long history of violent protest, the weekend riot stood out for its sheer scale, with police mostly powerless to stop thousands of rioters who descended on urban centers across the country.

Complicating matters was the fact that the riots unfolded in a moment of political transition. France is just six months away from holding presidential elections, and its current government is mired in fiscal woes that have constrained its ability to address the problems fueling protests.

Forex:

The euro weakened against the dollar in Asian trading hours, as civil unrest in France added to woes stemming from the performance of French government debt.

Nonetheless, forex.com's David Scutt said the riots aren't likely to cause sustained euro selling. "For the latest unrest to drive a sustained reassessment of the euro, markets arguably need evidence that France's fiscal or political outlook is becoming materially worse than investors had already anticipated," he said.

Bonds:

Federal Reserve officials appear inclined to keep interest rates unchanged at their Oct. 27-28 policy meeting. But don't be fooled by a pause: More rate increases are likely coming to tame escalating inflation.

Recent economic data strengthened the case for higher interest rates, but markets don't think the latest figures changed the Fed's apparent preference for waiting until later this year to raise rates. The latest reports make a December increase more likely, said James McCann at Edward Jones.

"The Fed won't panic in the face of these numbers, but the data will add to the conviction on the FOMC [Federal Open Market Committee] that policy needs to be tighter to help drag inflation back to target," he said.

Energy:

Oil futures fell in early Asian trade on a possible technical correction after strong gains on Friday. However, the decline might be limited by geopolitical tensions that could lead to supply disruptions. Ukrainian drones unleashed early Sunday the largest attack on St. Petersburg since the start of the Russia-Ukraine war, hitting a major oil terminal and other critical targets.

"The market is also wary of another escalation in hostilities in the Middle East," ANZ Research analysts said.

Metals:

Gold edged higher in Asian trade. Traders are likely weighing the prospect of further Federal Reserve rate increases this year following a run of hotter-than-expected U.S. inflation data, Commonwealth Bank of Australia's Trent Saunders said. Base metals inched higher. Sentiment in the sector has improved following a volatile week after hot U.S. inflation data and a selloff in artificial-intelligence stocks weighed on risk appetite, ANZ Research said.

Focus has returned to supply-side issues, with copper supply under threat due to labor strikes in Chile, ANZ said. The threat of U.S. tariffs on copper imports is also tightening supplies in the international market, with metal continuing to flow into U.S. warehouses, ANZ added. Iron ore prices rose in early Asian trade. Pressure on mining margins could limit further price declines, Industrial Futures analysts said. However, supply pressures are building as seaborne shipments rise seasonally and port inventories increase from both a year and a month earlier, they added.

Expectations for rising supply and weakening demand continue to weigh on the market, though lower prices could make it more sensitive to supportive news, they said. Iron ore is likely to trade in a range, the analysts added, warning that betting on further declines is becoming riskier at current prices.

TODAY'S TOP HEADLINES

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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.

Some Wall Street Leaders Are Weighing Bailing on 'Davos in the Desert' After Attacks on Riyadh

Members of the global financial elite are increasingly wary of traveling to Saudi Arabia for a highly anticipated gathering of corporate executives and investors next week, but they are weighing their own security against the risk of offending their wealthy hosts.

Some bankers and executives at JPMorgan Chase and Citigroup are carefully monitoring planned travel to the Future Investment Initiative conference and in some cases already canceling meetings, according to people familiar with the matter. No formal decision has been made yet by either organization.

French Leaders Trade Blame After Rioting Sweeps the Nation

PARIS-France confronted scenes of destruction on Sunday, from toppled landmarks to smashed city storefronts, as its political class began pointing fingers over who bore responsibility for some of the worst rioting to sweep the nation in years.

The violence, which erupted during a nationwide protest on Saturday, resumed Sunday evening with rioters burning barricades across Paris. More than 600 police officers and firefighters were injured in the weekend mayhem and more than 2,000 people were detained.

Ford Wants to Make Fun Cars Again in Europe-if Drivers Can Wait Until 2028

PARIS-Ford Motor's newly minted top executive for Europe gave dealers a sneak peek last winter of some new, racing-inspired vehicles the company plans to sell by the end of the decade.

Dealers saw designs of striking compact electric cars, two hybrid crossovers and a rugged, small Bronco SUV for the region. Before leaving, one dealer scratched out a simple message on a Post-it note left for Ford Europe President Jim Baumbick: "We are back."

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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.

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Rick Wurster says there is only so much that artificial-intelligence agents can do for Charles Schwab customers. Even when they are the closest of friends.

For Wurster, Schwab's chief executive, this was no hypothetical; he recently met an older woman who described OpenAI's ChatGPT as her best friend. She messages her digital companion all day, and even bids it good night. But when it comes time to make major money decisions, the customer picks up the phone to call her financial adviser at Schwab.

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October 19, 2026 00:18 ET (04:18 GMT)