European Midday Briefing: Shares Higher After Oil Falls on Rising Hopes in the Middle East

MARKET WRAPS

European shares were up as benchmark oil prices briefly fell below $90 for the first time since August.

All sectors except energy were in the green as the continentwide Stoxx Europe 600 gained.

Oil prices fell for a second consecutive session on Tuesday after Trump said further U.S. military strikes on Iran didn't seem necessary for now, raising hopes of an easing in the Middle East conflict.

Meanwhile, Adnoc Gas's Chief Executive said in an interview that while shipments of liquefied natural gas through the Strait of Hormuz remain below prewar levels, the company isn't yet ready to decide whether to build a facility to bypass the waterway.

Market Insight

German chip maker Infineon raised its artificial intelligence sales forecast for the new fiscal year, a sign that the buildout of data centers continues at pace.

Lombard Odier said that the long-term investment case for AI remains intact, despite the Democrats' sweep of the U.S. midterm elections last week.

However, T. Rowe Price expects investors to become more selective. "We remain constructive on AI's long-term potential, but... the opportunity lies in identifying where growth potential can translate into durable earnings and attractive returns."

U.S. Markets:

Stock futures were mostly up with Treasury yields little moved ahead of consumer-price inflation data due later today.

The inflation print will help shape market expectations for the Federal Reserve's December policy meeting. Markets currently price an 83.8% likelihood of a quarter-point hike, according to LSEG.

Investors also await World Agricultural Supply & Demand Estimates.

Forex:

The euro edged higher. The currency could appreciate modestly towards the end of the year, driven by positive seasonality where asset prices tend to perform well during certain periods, ING said.

The dollar eased. "Lower energy prices and strong risk appetite (beyond tech) outweighed rising U.S. yields as key driver for the U.S. dollar," KBC Bank said.

Bonds:

Eurozone government bond yields fell, helped by lower oil prices which could mitigate inflation risks and dampen interest-rate hike expectations.

Gilts fell. Trump said that further strikes against Iran are highly unlikely, raising prospects of an end to the Middle East conflict.

Treasury yields edged lower ahead of U.S. October consumer price inflation data.

Energy:

Oil prices extended losses. The outlook remains uncertain, as regional negotiations are still fragile and risks to energy infrastructure persist.

Metals:

Gold fell, undoing a rise earlier in the session. "The post-midterm rebound, supported by slumping oil prices and short covering among leveraged funds, has helped stabilise the market," Saxo Bank said.

EMEA HEADLINES

Volkswagen Backer Porsche SE Urges Faster Cost Cuts as Losses Mount

Volkswagen's major shareholder said the German automaker must take swift action to cut costs and improve profitability after its earnings were hit by impairments on its investment.

Porsche Automobil Holding SE, which holds more than 53% of ordinary shares in Volkswagen, said it swung to a loss in the first nine months of the year, mainly due to an impairment loss on the value of its investments in Volkswagen and sports-car maker Porsche AG.

Vodafone Dials Up Guidance But Says German Unit Needs Improvement

Vodafone Group raised its full-year guidance, citing cost savings and strong performance in its business-focused operations, but called out weakness in its German unit.

The U.K. telecommunications group said Tuesday that it now expects adjusted earnings before interest, taxes, depreciation and amortization after leases-a closely watched profit metric in the industry-for the year ending March 31 to range from 13.2 billion to 13.4 billion euros ($14.82 billion-$15.04 billion). It previously expected a result at the upper end of the 13 billion to 13.3 billion euros range.

GLOBAL NEWS

China's Trade Surplus Surged Past $1 Trillion in October

BEIJING-China's trade surplus surged to more than $1 trillion in the first 10 months of the year as the country's factories cranked out electric vehicles, semiconductors and industrial robots for customers around the world.

The export wave puts China on track to exceed its record $1.19 trillion trade surplus last year and is likely to further stoke tensions with Beijing's trading partners.

Fed's Waller puts half-point rate hike into the mix for December

Federal Reserve Gov. Chris Waller on Tuesday put the possibility of a half-point rate hike into the mix, depending how hot consumer price data for October comes in.

The yield on the 2-year U.S. Treasury BX:TMUBMUSD02Y rose 4 basis points as Waller discussed the idea at an event in London.

Inflation Likely Stayed Too Hot in October to Justify a Further Pause in Interest Rate Increases

Inflation is expected to have moderated in October, but likely not by enough to dissuade the Federal Reserve from raising interest rates at its December policy meeting.

Economists surveyed by FactSet expect that the consumer price index rose by 0.3% last month, compared with a 0.6% increase in September. A monthly CPI reading of approximately 0.2% would be consistent with the Fed's 2% annual inflation target.

Poland's Political Divisions Puncture Its Influence on World Stage

WARSAW-Poland has one of the strongest economies in Europe, one of NATO's highest rates of military spending and a nearly unmatched understanding of Russia's threat to the continent. Yet the country punches below its weight on the world stage.

The reason? A divided political system that has paralyzed both sides for years and complicated Warsaw's relationships with both President Trump and some of Europe's biggest powers.

U.S. Aircraft Evacuated From Second U.K. Base Due to Iran Threat

The U.S. evacuated American aircraft from a Royal Air Force base in England on Monday in the wake of a threat from Iran, according to people familiar with the matter.

The precise nature of the threat to RAF Mildenhall-whether imminent or more general-remains under discussion among U.S. officials, the people said.

California Voters Reject Unprecedented Tax on Billionaires

LOS ANGELES-California voters rejected a proposed billionaire tax, ending a heated and expensive fight over what could have been the nation's first modern tax on wealth.

The Associated Press called the race late Monday as the ballot initiative, Proposition 40, was trailing by about 5.5 points after last week's election.

China's Trade Surplus Surged Past $1 Trillion in October

BEIJING-China's trade surplus surged to more than $1 trillion in the first 10 months of the year as the country's factories cranked out electric vehicles, semiconductors and industrial robots for customers around the world.

The export wave puts China on track to exceed its record $1.19 trillion trade surplus last year and is likely to further stoke tensions with Beijing's trading partners.

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

November 10, 2026 05:16 ET (10:16 GMT)