MARKET WRAPS

Watch For:

Eurozone flash consumer confidence, France monthly business survey; trading updates for Roche, Unilever, Nokia, Schroders, Lloyds Banking Group, London Stock Exchange Group, Prada, Renault, IHG among others

Opening Call:

European stock futures were lower after Asia stocks broadly fell. U.S. Treasury yields were flat and the dollar held steady. Gold and oil rose.

Equities:

European stock futures were lower as the Trump administration is considering wide-ranging restrictions on exports to China that rely on U.S. software, the latest trade measure under discussion that could hobble the world economy.

The software curbs are what President Trump referred to earlier this month on social media when he threatened action on "critical software," people familiar with the matter said.

Tit-for-tat measures have deepened uncertainty in global supply chains and fueled volatility across financial markets since the spring, said Jay Hatfield, chief executive at Infrastructure Capital Advisors.

"We're pro tariffs but not pro trade war," he said.

Forex:

The dollar could rise further if coming U.S. economic data on growth and productivity are better than expected or the perceived risk of U.S. tariffs pushing up inflation rises, said Rabobank forex strategist Jane Foley.

"This could extend the recent position adjustment in favor of the dollar."

The dollar has recently received a boost from a short squeeze where speculators close earlier bets against the currency. Speculators bet heavily against the dollar at the start of this year as they adjusted positions after years of the "buy America" trade, she said.

Bonds:

Jefferies holds a long position in Italian government bonds and takes a positive view on the country, said global economist Mohit Kumar.

There are no idiosyncratic risks in Italy while growth and the fiscal picture are improving, he said. Jefferies favors buying Italian bonds and selling French government bonds as the best way to trade a negative view on France.

Energy:

On a global level, oil traders had been concerned about a supply glut, but the group of major oil producers known as OPEC+ have "underdelivered" on their announced increases, said Rebecca Babin, senior energy trader and managing director at CIBC Private Wealth.

She thinks OPEC+ has underdelivered by nearly 50%, so the "anticipated flood of barrels hasn't fully hit the market."

At the same time, while oil demand expectations had been fairly conservative, consumption has held up better than many had expected, said Babin.

Metals:

Gold rose after it extended its pullback overnight, with front-month Comex gold futures falling for a second straight session.

Investors have been unwinding part of last week's speculative surge, Sucden Financial's Research team said.

The retreat in precious metals' prices probably reflects profit-taking and reduced safe-haven flows rather than U.S. Treasury yields' dynamics, the team said.

"Still-low Treasury yields and ongoing macro uncertainty continue to offer underlying support" for precious metals, the team added.

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Copper edged higher amid reports of another mine disruption in the copper market have raised concerns of supply tightness, said ANZ Research analysts.

Around 80 miners were trapped when a mine partially collapse in the Dominican Republic. The analysts noted that copper prices have been well-supported by supply side disruptions that tightened market fundamentals.

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Iron ore rises as prices have been recently volatile, with markets weighing on weak domestic demand in China against growing overseas steel consumption, Galaxy Futures said.

Overall, manufacturing steel demand could recover in 4Q but markets will likely focus on the impact of softer end-use demand in China, given rising domestic inventories and supply, combined with the impact of U.S. tariffs on exports, it added.

TODAY'S TOP HEADLINES

U.S. Imposes Substantial New Sanctions on Russian Oil Giants

WASHINGTON-President Trump has announced substantial new sanctions on Russia's two biggest oil companies as frustration in Washington grows over the war in Ukraine.

The new sanctions, which would be the first direct U.S. measures on Russia during the second Trump administration, target Lukoil and Rosneft as well as nearly three dozen of their subsidiaries. Oil is one of Russia's largest sources of revenue.

Jittery investors are pushing down Treasury yields ahead of crucial CPI inflation report

Investors are bracing for an upcoming reading on inflation from the Bureau of Labor Statistics - a crucial piece of the U.S. economic picture in an otherwise vacuum of government data during the shutdown.

Treasury bond yields have fallen this month as investors navigate a U.S. government shutdown that has dragged on since Oct. 1 and are left to make decisions without the usual batch of closely watched economic reports. But on Friday, the BLS will release a delayed report on September inflation data via the consumer-price index (CPI), even as the shutdown means investors are missing other readings on the economy from the government.

A Parade of Senior U.S. Officials Descends on Israel for 'Bibisitting' Duty

TEL AVIV-Vice President JD Vance is due to fly out of Israel on Thursday, just hours before Secretary of State Marco Rubio flies in. Trump envoys Steve Witkoff and Jared Kushner were on the ground a few days before.

The high-level relay of U.S. officials descending on Israel is aimed at ensuring the cease-fire deal in Gaza that is President Trump's most notable foreign-policy achievement to date doesn't fall apart in its early days.

Islamic State Rises Again in Syria, Filling a Void Left by U.S.

HAJIN, Syria-The two American-backed Kurdish soldiers were riding in a pickup truck past a row of shops when Islamic State militants on motorcycles opened fire with AK-47s, killing them both.

A shop owner near the site said it was the first Islamic State attack on the road. "We are all afraid," he said, visibly shaken a day after the ambush. "They have returned to our city."

Trump Administration in Talks to Take Equity Stakes in Quantum-Computing Firms

WASHINGTON-Several quantum-computing companies are in talks to give the Commerce Department equity stakes in exchange for federal funding, a signal that the Trump administration is expanding its interventions in what it sees as critical segments of the economy.

Companies including IonQ, Rigetti Computing and D-Wave Quantum are discussing the government becoming a shareholder as part of agreements to get funding earmarked for promising technology companies, according to people familiar with the matter. Other companies such as Quantum Computing Inc. and Atom Computing are considering similar arrangements.

BHP Paints China Iron-Ore Standoff as Business as Usual

MELBOURNE, Australia-The chair and chief executive of giant miner BHP Group on Thursday brushed off market concerns about protracted contract negotiations with China, saying the company continues to sell the iron ore it mines and that it has a good relationship with customers in the Asian nation, the world's dominant commodities buyer.

Annual contract talks on iron-ore sales between BHP and China have been thrust into the spotlight following media reports of a stalemate on price and whether the miner would sell more of its ore in yuan instead of the U.S. dollar, the currency used for most commodity sales worldwide. BHP, the world's top miner by market value, relies on iron ore for more than half its earnings.

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Expected Major Events for Thursday

04:30/NED: Oct Consumer confidence survey

06:00/DEN: Oct Consumer expectations

06:00/NOR: Sep Labour force survey SA, incl unemployment

06:45/FRA: Oct Monthly business survey (goods-producing industries)

07:00/SPN: Aug Trade Balance

08:00/POL: Sep Unemployment

10:00/UK: Oct CBI Industrial Trends Survey

11:00/TUR: Turkish interest rate decision

14:00/EU: Oct FCCI Flash Consumer Confidence Indicator

23:01/UK: Sep UK monthly automotive manufacturing figures

23:01/UK: Oct UK Consumer Confidence Survey

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(END) Dow Jones Newswires

October 22, 2025 23:59 ET (03:59 GMT)

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