European markets opened higher on Wednesday, recovering some of the steep losses from earlier in the week that were triggered by renewed tensions between the U.S. and China. French political developments are also drawing close investor attention.
By 07:10 GMT, Germany’s DAX index was up 0.2%, France’s CAC 40 jumped 2.3%, and the UK’s FTSE 100 edged 0.1% higher. This uptick follows Tuesday’s slide, when major European indices hit two-week lows amid escalating trade friction between Washington and Beijing. The decline came after U.S. President Donald Trump threatened new tariff hikes in response to China’s decision to impose export controls on rare earth minerals.
Trump further ramped up rhetoric on Tuesday, warning that Washington could cut trade ties with China in the cooking oil sector, calling Beijing’s reduction in soybean imports an “economically hostile act.”
French Market in Focus
European sentiment was lifted by remarks from Jerome Powell, who said the U.S. economy remained on solid ground, though he also noted a “notably softer labor market.” Markets interpreted this as a sign the Federal Reserve may be open to another rate cut later this year.
In Europe, attention turned to France after Prime Minister Sebastien Lecornu — reappointed Friday after briefly stepping down last week — pledged on Tuesday to delay a controversial pension reform plan until after the 2027 presidential election.
“French Prime Minister Sebastien Lecornu offered to shelve a landmark pension reform until after the 2027 presidential election, caving to pressure from leftist lawmakers in a bid to shore up his fragile political standing.”
This move comes as France faces its most intense political turmoil in decades, with successive minority governments struggling to pass deficit-reduction budgets through a deeply divided parliament. Inflation data also came in as expected, with consumer prices up 1.1% year-on-year in September, according to INSEE.
Corporate Updates: ASML, Entain, PageGroup
In corporate news, ASML Holding (EU:ASML) warned of a “significant” drop in sales to China in 2026 compared with 2024 and 2025 levels, even as the chip equipment maker reported stronger-than-expected bookings for the quarter.
Entain plc (LSE:ENT) posted a 6% increase in net gaming revenue for Q3, supported by solid growth in its online business. Meanwhile, PageGroup (LSE:PAGE) reported a quarterly profit decline, as strength in the U.S. and parts of Asia failed to offset weaker conditions in Europe.
Oil Prices Extend Losses
Crude prices continued to slip, extending Tuesday’s losses after International Energy Agency warned of a looming supply surplus in 2026.
Brent futures were down 0.3% at $62.20 per barrel, while U.S. West Texas Intermediate futures fell 0.2% to $58.57 per barrel. Both benchmarks ended the previous session at five-month lows. The IEA noted on Tuesday that the global oil market could face a surplus of up to 4 million barrels per day next year — a bigger glut than previously forecast.
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