MARKET WRAPS
Stocks:
European shares were on course to continue their winning streak Wednesday, buoyed by expectations for an imminent reopening of the U.S. government , as third-quarter earnings season entered a busy final stretch.
Most of the major indexes in Europe were up this morning after the STOXX 600 and FTSE 100 both closed at record highs on Tuesday.
Investors are hoping the spending package to end the government shutdown could be passed by the House today.
However, uncertainty remains heightened as official data continues to be halted during the shutdown, while ADP figures revealed signs of weakness in the U.S. labor market .
"The market had been flying blind with no data and now as the fog lifts, we will see if market positioning has been correct and it is still clear sailing or if there is a big repricing necessary," Landsberg Bennett Private Wealth Management said.
Shares on the Move
London's miners climbed in opening trade as gold prices rose slightly. Fresnillo, Endeavour Mining and Hochschild Mining were all up.
Economic Insight
Markets have lowered their expectations for the Bank of England's terminal rate from 3.5% to 3.25% following weak U.K. jobs data, ING said.
"Tuesday's higher unemployment and weaker wage growth were yet another reading suggesting more room for cuts than previously thought."
U.S. Markets:
Stock futures were rising across the board after Tuesday's rotation out of Big Tech.
Nasdaq futures suggested a bounceback for technology stocks. Coreweave and Nvidia were among the fallers in the previous session.
The expected reopening of the government is set to unleash a barrage of delayed economic data, with the September jobs report likely among the first out.
Governors Stephen Miran and Christopher Waller feature on a busy day for Federal Reserve speakers.
Forex:
The dollar traded broadly steady as uncertainty over the U.S. economic outlook remained elevated even after lawmakers moved closer to ending the government shutdown.
Sterling weakened against the euro and dollar and was at risk of further falls following news that U.K. Prime Minister Keir Starmer could face a leadership challenge after the Nov. 26 budget, ING said.
The Swiss franc rose to a two-week high against the euro, lifted by hopes for an imminent U.S.-Switzerland trade deal.
Bonds:
Eurozone government bond yields were marginally higher due to improved risk sentiment as the U.S. government looked set to reopen. However, U.S. jobs data tempered some of the positivity.
ADP estimated that the private sector was shedding 11,250 jobs a week in the four weeks through Oct. 25.
Treasury yields declined in Asian trade on the weak labor signals.
Investors will watch out for Fed speakers as well as the Treasury's $42 billion auction of 10-year notes.
Trium Capital said the 10-year Treasury yield could edge up toward 4.50% near term due to prospects of the Fed cutting interest rates at a cautious pace and quantitative tightening ending in December.
Still, yields should keep within a relatively tight range as rate-cut prospects largely offset concerns about rising fiscal risks.
Energy:
Oil prices edged lower in early trading as investors awaited key industry reports for more insights into the supply-and-demand outlook.
"The recent strength in the oil market has been driven by refined products , with gasoline and gasoil cracks surging amid concerns about supply," ING said.
"While the outlook for oil is bearish, the strength in the refined products market is proving to be a significant obstacle."
EMEA HEADLINES
SSE to Invest $43 Billion in Five-Year Plan to Grow Earnings, Dividends
SSE said it will invest 33 billion pounds, equivalent to $43.40 billion, through 2030 in a push to grow earnings and dividends.
The U.K. energy group said the fully-funded five-year plan will increase its exposure to U.K. electricity networks, with around 80%, or 27 billion pounds, being invested in this area.
BAE Systems Warns U.S. Government Shutdown Could Delay Payments
BAE Systems said the continuation of the U.S. government shutdown could lead to delays to contract funding and payments.
The London-listed defense company said Wednesday that the U.S. government shutdown hasn't had any material effects yet on its U.S. business, and expressed hopes that the situation would be resolved soon.
Bayer Posts Net Loss on Litigation Hit
Bayer reported a net loss for the third quarter due to litigation charges, though adjusted earnings rose, and said it aims to significantly contain risks from U.S. legal battles by the end of next year.
The German pharmaceutical and agricultural conglomerate on Wednesday said it reached a number of settlements, followed by a moderate rise in case filings. This led to additional litigation provisions that resulted in special charges of 1.06 billion euros ($1.23 billion), the company said.
Infineon Forecasts Return to Sales Growth as AI Chip Demand Keeps Booming
Infineon Technologies expects sales to grow in the new fiscal year as demand for chips powering artificial-intelligence data centers shows no sign of abating.
The German chip maker said revenue in the year to the end of September 2026 should increase moderately from the 14.66 billion euros it reported for fiscal 2025. Its segment result margin-a key profitability measure-is expected to come in a high-teens percentage range compared with 17.5% in fiscal 2025.
Dutch Lender ABN Amro to Buy Peer NIBC Bank From Blackstone for $1.1 Billion
Dutch bank ABN Amro agreed to buy Blackstone-owned NIBC Bank for around 960 million euros ($1.11 billion) to boost its retail-banking activities in its home market.
The lender said Wednesday that the deal, which is expected to close in the second half of 2026 subject to approvals, should enhance its profitability and result in a return on investment of around 18% by 2029.
LVMH Acquires Minority Stake in Swiss Watchmaker La Joux-Perret
LVMH's watch division acquired a minority stake in Swiss manufacturer La Joux-Perret, the companies said Wednesday.
The conglomerate's watchmaking unit, which houses brands like Hublot, TAG Heuer, and Zenith, made the move as a part of a long-term plan to bolster ties with industrial partners, LVMH said. The size of the stake and financial details weren't disclosed.
Schneider Electric Is a Poorly Performing AI Play. Don't Give Up on the Stock.
Picks-and-shovels plays are a time-tested way for investors to profitably gain exposure to a market trend. They don't always work. Identifying a theme is great, but there is rarely a substitute for strong business execution.
Barron's picked Schneider Electric stock in October 2024, with shares at about EUR240. It was a picks-and-shovels play on AI. Shares haven't performed as expected, but there is still a lot to like about the company.
GLOBAL NEWS
IEA's Revived Policy Outlook Sees No Peak in Oil, Gas Demand This Decade
The International Energy Agency reintroduced an energy scenario that doesn't see oil and gas demand peaking this decade in its closely watched annual report, following criticism from some Trump administration officials.
The Paris-based agency-which represents major oil-consuming nations and publishes influential energy market forecasts and data-had scrapped the model in 2020, shifting to outlooks that consider not only current policies, but also proposals. The agency includes multiple scenarios in its report.
America's Chip Restrictions Are Biting in China
Beijing is taking an aggressive approach to help its technology giants squeezed by America's chip restrictions.
Shortages of advanced semiconductors are so acute that the government has begun intervening in how the output of China's largest contract chip maker, Semiconductor Manufacturing International, is distributed, according to people familiar with the matter. Chinese authorities are trying to give priority to the needs of tech conglomerate and national champion Huawei Technologies, which uses SMIC technology to make artificial-intelligence chips, the people said.
The Fed Is Increasingly Torn Over a December Rate Cut
The path for interest-rate cuts has been clouded by an emerging split within the central bank with little precedent during Federal Reserve Chair Jerome Powell's nearly eight-year tenure.
Officials are fractured over which poses the greater threat-persistent inflation or a sluggish labor market-and even a resumption of official economic data may not bridge the differences.
What the Looming Fall of a Ukrainian City Says About Putin's War
When Russians finally began to outnumber Ukrainians in Pokrovsk in recent weeks, the city lay in ruins and bodies lined the streets.
The brutal fight for the Ukrainian city points to Russian President Vladimir Putin's ultimate aims in the war-and explains why President Trump's peace efforts have, so far, failed.
Write to gareth.mcpherson@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 12, 2025 04:59 ET (09:59 GMT)
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