EMEA Morning Briefing: Bond Yields Rise as Fed Rate-Hike Expectations Build

MARKET WRAPS

Watch For:

Germany CPI; trading updates from Siemens Energy, E.ON, ABN Amro, Taylor Wimpey, Vestas Wind Systems, RWE, ITV, ICG

Opening Call:

European stock futures rose early Wednesday. Asian stock benchmarks were mixed; the dollar edged higher; while oil and gold futures rose.

Equities:

Stock futures point to a higher open in Europe on Wednesday, shrugging off declines on Wall Street overnight.

Despite recent volatility chip makers are still "printing money," said J.D. Joyce, president of firm Joyce Wealth Management. "I don't think one extramarital affair...by one person is going to cause the AI revolution to come to a complete halt," Joyce said.

Cloud-computing company CoreWeave said that it met Wall Street's expectations for its third-quarter results, tamping down fears about its business. Meanwhile, Anthropic will seek a valuation of around $1.33 trillion in its initial public offering, setting up a test for investors on edge over the AI trade.

Forex:

Hotter-than-expected U.S. CPI and Federal Reserve officials' comments rekindled rate-hike expectations, lifting the greenback. Fed hawkishness reinforces OCBC's view that it is too early to position for sustained dollar weakness despite cooler oil prices and renewed AI concerns capping gains.

Bonds:

Treasury yields are once again center stage after comments by Fed officials and the release of higher-than-expected inflation data triggered selling in U.S. markets.

Jack Chambers, interest rate strategist at CBA, thinks there's scope for bond yields to rise even further. Economic momentum and increased expectations of Fed hikes will dominate, biasing 10-year yields higher in the near term, he said.

Energy:

Oil rose early Wednesday. Prices have fallen recently on hopes of an end to the Middle East conflict, but U.S.-Iran negotiations remain deadlocked as both sides hold to key demands, ANZ said, noting the impasse will keep constraints on supplies.

Risks to regional energy infrastructure also continue to rise following the targeting of Saudi Arabia's key East-West pipeline and the two limited U.S. strikes on Iran's Qeshm Island.

Metals:

Gold rose slightly in Asian trade in a likely technical rebound after tumbling overnight. Hotter-than-expected U.S. inflation has raised expectations of a rate hike by the Fed, said ANZ. Copper advanced in Asia as buying interest picked up on a decline in prices, Everbright Futures said. Chinese demand showed signs of improvement with lower prices encouraging purchases--as well as continued declines in inventories supporting spot premiums. However, gains may be limited by a stronger U.S. dollar and expectations of further Fed tightening.

Prices are expected to remain under pressure in the medium term, with overseas markets leading declines and Chinese prices finding support from low inventories and elevated spot premiums, Everbright added. Iron ore is nearing cost support, said Morgan Stanley. "Recent quarterlies highlight the pressure," MS said, noting negative cash margins at Champion Iron's Bloom Lake and Mineral Resources Pilbara Hub operations.

"Although prices may be approaching cost support, we expect that any supply curtailments would take time, as shutdown/restart costs and capex deferral can keep marginal tons operating through periods of losses," MS said.

TODAY'S TOP HEADLINES

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.

Nvidia Scandal Tests the Resilience of the Global AI Boom

Let's remember a simpler time, just a few weeks ago, when the supposed China dupes were those Americans raising concerns about AI-not the guy leading the industry's charge.

Back then, Jensen Huang was Mr. Cool with a black leather jacket and megaphone of support for artificial intelligence. As co-founder of Nvidia, he led one of the most valuable companies in the world thanks to his bet on his chips powering the development of the rapidly developing technology.

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.

Canada PM Carney Calls Stellantis Factory Sale 'Unacceptable'

OTTAWA-Canadian Prime Minister Mark Carney said the sale by Stellantis of its Toronto-area factory is "unacceptable," adding he's prepared to use whatever legal and policy levers available to protect the roughly 2,000 workers affected.

Stellantis' sale to Canadian armored-vehicle maker Roshel violates the obligations the automaker made to the government in exchange for taxpayer-financing, and to its Canadian employees, Carney said Tuesday at a press conference in Montreal.

OpenAI Continues to Suffer Heavy Losses as Revenue Rises to $10 Billion

OpenAI grew revenue by roughly 50% to $10 billion from the second to the third quarter, but continued to report heavy operating losses, showing mixed results in its effort to catch up with industry leader Anthropic.

The company shared its latest results with investors on Tuesday, just as Anthropic was preparing to mount its much-anticipated IPO next week. The maker of Claude recently disclosed that its revenue rose to $17 billion in the third quarter while reporting a smaller operating loss of $567 million during that period.

Jensen Huang Affair Revives Push for Chip Restrictions on Capitol Hill

WASHINGTON-Lawmakers are demanding tighter restrictions on chip exports following Jensen Huang's affair with a business partner suspected of being a Chinese intelligence source, a push that threatens to cost Nvidia and other semiconductor companies billions of dollars in revenue.

Top Republicans and Democrats said this week that they hope to include three proposed measures making it more difficult to send artificial-intelligence chips around the world in a stalled defense package.

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Expected Major Events for Wednesday 00:01/UK: Oct UK Nations and Regions Growth Tracker

05:30/NED: Sep International trade

07:00/GER: Oct CPI

08:00/SVK: Sep Construction production

09:00/BUL: Sep Trade with third countries - preliminary data

09:00/BUL: Aug Trade with EU Member States - preliminary data

09:00/ITA: Sep Industrial Production

09:00/EU: Oct Long term interest rates statistics

10:00/CRO: Oct PPI

11:00/POR: Oct CPI

16:59/AUT: Nov OPEC Monthly Oil Market Report

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(END) Dow Jones Newswires

November 11, 2026 00:16 ET (05:16 GMT)