European Midday Briefing: Shares Up as Optimism Around AI Trade Improves

MARKET WRAPS

Stocks:

European shares were up Wednesday with technology stocks gaining as rebounding artificial-intelligence sentiment helped markets recover.

Semiconductor companies were on the rise as solid third-quarter results from cloud-computing company CoreWeave reignited appetite for AI. The sector has faced sharp selloffs in recent days due to concerns about possible tougher regulations following Democrats' win at the U.S. midterm elections.

Oil prices rebounded, with Brent crude recovering above $92 a barrel after a sharp selloff, as renewed strikes in the region tempered expectations of a diplomatic resolution to the U.S.-Iran conflict.

After Tuesday's stronger-than-expect U.S. inflation data, markets bet on three interest-rate increases by the Bank of England by the end of 2027 due to inflation concerns.

"In the absence of evidence of weaker inflation pressures, I continue to think there is likely to be a case for a further increase in rates in the near term," deputy governor Clare Lombardelli said.

For the day ahead, European Central Bank President Christine Lagarde will speak on a quieter day for macro releases.

U.S. Markets:

Stock futures were up as the AI-linked trade revived and investors sought to look past October's hotter-than-expected consumer price index.

Forex:

The euro fell. The outlook for the euro-dollar exchange rate could remain challenging until lofty U.S. interest-rate rise expectations are called into question, Commerzbank said. The dollar remained elevated after reaching a near two-week high against a basket of currencies on Tuesday following higher-than-anticipated U.S. inflation data. Sterling rose. The currency is expected to perform well against lower-yielding safe-haven currencies due to high yields on U.K. government bonds, Convera said. Bonds:

Eurozone government bond yields were little changed, struggling to find direction without guidance from Treasury markets.

Treasury investors were set to take a breather on Wednesday's Veterans Day holiday after hawkish comments from a Federal Reserve governor and higher-than-expected October inflation data triggered a sharp bond selloff Tuesday.

Energy:

Oil prices increased. The gains followed several sessions of steep declines after President Trump signaled that further U.S. military action against Iran was unlikely for now, raising hopes that negotiations could bring an end to the conflict.

Metals:

Gold prices ticked higher after Tuesday's slide, but further gains are capped by stronger-than-expected U.S. inflation data and expectations of higher interest rates next month. The precious metal's outlook remains compelling in the long term, according to Julius Baer.

EMEA HEADLINES

Vestas Wind Systems Shares Drop on Earnings Miss, Narrowed Guidance

Shares in Vestas Wind Systems fell Wednesday after third-quarter earnings missed expectations while a narrowed guidance implies cuts to consensus expectations.

Shares were 7.7% lower in early European trade.

Payward to Launch Tokenized Versions of U.K., European Stocks

Nasdaq-backed Payward will launch tokenized versions of more than 200 of the most-traded U.K. and European stocks, the latest in a stream of crypto companies looking to bridge traditional and decentralized finance.

Siemens, Shell and LVMH are among the companies that will trade 24/7 as digital tokens via xStocks, Payward's framework for tokenized stocks. All stocks in both London's FTSE 100 and the German DAX are among those that will be tokenized, the company said.

KKR, Germany's RWE Invest $16 Billion in U.K. Wind-Power Projects

KKR and renewable energy company RWE plan to jointly invest around $16 billion in U.K. offshore wind projects, as the private-equity firm dials up its exposure to renewable power.

The two companies are teaming up to deliver more power through one of the country's biggest offshore wind developments, the Vanguard West and Vanguard East projects in the North Sea off the Norfolk coast.

Siemens Energy Targets Steeper Profit Gains Through 2030

Siemens Energy is targeting sales growth and a jump in profitability under midterm targets over the next four years after a record fiscal 2026.

The German maker of energy equipment said Wednesday that it is targeting compound annual revenue growth of 12% to 14% through fiscal 2030 and a profit margin before special items of between 20% and 22% for the year. This compares with a margin of 12.4% in the fiscal year ended Sept. 30.

GLOBAL NEWS

U.S. Treasurys Pause on Market Holiday After Inflation-Fueled Selloff

U.S. Treasury investors are set to take a breather on Wednesday's Veterans Day holiday after hawkish comments from a Federal Reserve governor and higher-than-expected October inflation data triggered a sharp bond selloff Tuesday.

Treasury yields moved sharply higher Tuesday after Fed Governor Christopher Waller said at a conference in London that he would support a 25-basis-point interest rate increase in December, but if inflation came in substantially higher than expected, "more robust action" might be needed.

Oil Prices Rebound as Middle East Supply Risks Persist

Oil prices rose Wednesday, with Brent crude recovering above $92 a barrel after a sharp selloff, as renewed strikes in the region tempered expectations of a diplomatic resolution to the U.S.-Iran conflict.

Front-month Brent crude, the global oil benchmark, rose 1.2% to $92.55 a barrel, while West Texas Intermediate futures gained 0.7% to $86.67 a barrel.

Yen Slumps to Over One-Month Low on Fed Hike Bets

TOKYO-The yen weakened to the lowest level in more than a month against the dollar on Wednesday, after stronger-than-expected U.S. inflation data raised expectations for Federal Reserve interest-rate hikes.

A more aggressive Fed stance that widens the U.S.-Japan rate gap is a drag on the yen as it makes the currency attractive for so-called carry trades, where investors use a cheap currency to buy higher-yielding assets.

Fed Forced to Confront Case for Bigger and Faster Rate Rises

Federal Reserve officials spent October talking markets down from bets on a quick string of rate increases. Inflation data haven't cooperated.

Core consumer prices, which exclude food and energy, rose at a 3.7% annualized rate over the three months through October, a broad acceleration from the 1.6% rate for the three months through July, according to a Labor Department report released Tuesday.

Trump's Plan to Import Russian Diesel Stalls on the High Seas

President Trump's efforts to supply the U.S. with Russian diesel have yet to result in any new imports into the country, as several fuel tankers bound for America shifted course following difficulties finding buyers willing to accept the controversial cargoes.

Trump saw Russian diesel as a way to lower sky-high prices for the fuel, which contributed to rising consumer costs in the U.S. in the run-up to the midterm elections. But the diverted ships show U.S. oil companies are reluctant to handle the cargoes of Russian diesel because of the potential legal and reputational consequences, industry executives and lobbyists said.

Hegseth Survives Impeachment Effort in House

WASHINGTON-Defense Secretary Pete Hegseth fended off an impeachment effort Tuesday evening in the House, after GOP votes helped to kill the effort to punish him for his actions as President Trump's Pentagon chief.

The House voted to refer the articles of impeachment proposed by Rep. Thomas Massie (R., Ky.) back to the Judiciary Committee for consideration, effectively blocking the effort for now. The vote was 211 to 204, with Massie as the only Republican who sided with Democrats.

Progressives Lose California Wealth Tax Battle-but Aren't Conceding the War

Progressives' yearslong quest to tax wealth failed its biggest test in California.

That doesn't mean the idea is going away.

John Thune Wins Another Term as Senate GOP Leader Despite Grumbling

WASHINGTON-Senate Majority Leader John Thune (R., S.D.) won re-election Tuesday as the head of the GOP conference next year, overcoming calls from some of his colleagues to delay the vote until the party could reckon with sweeping midterm-election losses.

Thune-who ran unopposed-won by acclamation after a pair of hourslong, closed-door meetings with members of the Senate Republican conference. Republicans had a 53-47 majority heading into the midterms, but losses in the Midwest and South mean they are on track to lose as many as nine seats in the next Congress.

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

November 11, 2026 05:15 ET (10:15 GMT)