Author: Fiona Craig

European equity markets traded sharply lower on Tuesday as a combination of mixed corporate earnings, disappointing U.S. manufacturing data, and cautious remarks from Federal Reserve officials dampened investor confidence and reduced appetite for riskier assets.

By mid-morning, the FTSE 100 in London was down 0.4%, while France’s CAC 40 dropped 1.0% and Germany’s DAX slid 1.2%.

Among individual movers, Telefónica (BIT:1TEF) saw its shares sink after the Spanish telecom giant announced plans to halve its dividend for 2026 as part of a broader strategic overhaul aimed at reducing debt and boosting efficiency.

Fresenius Medical Care (BIT:1FME) also fell, despite reporting better-than-expected third-quarter results, as the German dialysis group reaffirmed its 2025 guidance, noting that cost-saving initiatives had supported profitability.

Shares of Edenred (EU:EDEN) tumbled after the French employee benefits provider cut its medium-term earnings growth targets, citing macroeconomic headwinds and slower client demand.

In Sweden, Skanska (BIT:1SKAB) edged lower following news that the construction company will invest about SEK 820 million in the fifth phase of its Nowy Rynek office development in Poznań, Poland.

On the upside, Geberit (BIT:1GEBN) gained after the Swiss plumbing materials manufacturer raised its 2025 sales outlook, reflecting improving market demand.

Philips (EU:PHIA) shares also advanced, with the Dutch medical technology group lifting the upper end of its full-year margin forecast after reporting third-quarter revenue in line with market expectations.

Gold prices edged lower in Asian trading on Tuesday, weighed down by a strengthening U.S. dollar and growing uncertainty over the Federal Reserve’s next policy decision following Chair Jerome Powell’s hawkish comments last week.

By 01:58 ET (06:58 GMT), spot gold was down 0.4% at $3,986.10 per ounce, while U.S. gold futures slipped 0.5% to $3,994.30. The metal once again failed to hold above the $4,000 level as the dollar extended its rally, making bullion more expensive for international buyers.

Gold Pressured by Dollar Strength and Fed Ambiguity

The U.S. dollar climbed to a three-month high on Monday against major peers, supported by fading expectations of another interest rate cut this year.

Powell signaled last week that the central bank was not yet committed to further easing, saying a December rate move was “not a foregone conclusion.” As a result, investors have dialed back bets on near-term monetary loosening.

Uncertainty was compounded on Monday when several Fed officials offered differing perspectives on the economic outlook. Some highlighted the ongoing need to guard against inflation, while others warned that the labor market is beginning to cool.

The divergence in views deepened doubts about when the Fed might resume rate cuts, keeping the dollar well-supported.

Gold, which pays no interest, generally loses its appeal in environments of high interest rates or a strong dollar. The prospect of fewer rate cuts and elevated real yields has continued to dampen investor appetite for the precious metal.

Still, analysts noted that downside risks for gold remain limited amid ongoing fragility in U.S.-China trade relations. While recent signs of progress between Washington and Beijing have reassured investors, renewed concerns over restrictions on advanced chip exports have tempered optimism.

Metal Markets Follow Gold Lower

Other precious and industrial metals also retreated as the stronger dollar weighed on sentiment.

Silver futures dropped 1.5% to $47.315 per ounce, while platinum futures fell 1.3% to $1,557.85 per ounce.

On the London Metal Exchange, benchmark copper futures slipped 1.3% to $10,705.20 per ton, and U.S. copper futures mirrored the move, falling 1.3% to $4.99 per pound.

Oil prices retreated on Tuesday as traders interpreted OPEC+’s latest production decision—a pause in output increases during the first quarter—as a potential indication that the market could face oversupply.

By 0700 GMT, Brent crude futures slipped 37 cents, or 0.6%, to $64.52 a barrel, while U.S. West Texas Intermediate (WTI) fell by the same margin to $60.68 a barrel.

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) announced on Sunday that it would implement a modest production hike for December but hold off on further increases in early 2026. The coalition has lifted output targets by roughly 2.9 million barrels per day—equivalent to about 2.7% of global supply—since April but has recently slowed that pace amid growing expectations of a supply surplus.

“(The) market may see this as the first sign of acknowledgement of potential oversupply situation from the OPEC+ front, who have so far remained very bullish on demand trends and ability of market to absorb the extra barrels,” said Suvro Sarkar, energy sector team lead at DBS Bank.

Still, some industry executives are pushing back against talk of an impending glut. The heads of several major European energy firms on Monday argued that global demand remains strong and that production growth is likely to moderate. Meanwhile, U.S. Department of Energy Deputy Secretary James Danly said he does not believe there will be an oil glut in 2026.

Sources within OPEC+ said the decision to maintain steady targets followed lobbying by Russia, which sought a pause as Western sanctions have made it harder for the country to expand exports. Both the U.S. and U.K. imposed new restrictions in October on Rosneft and Lukoil, Russia’s two largest oil producers.

JP Morgan analysts wrote that “our oil strategists maintain their view that while the risk of disruption has increased, U.S. measures, along with complementary actions by the UK and EU, will not prevent Russian oil producers from operating.”

Despite the current slide in prices, independent market analyst Tina Teng said the ongoing sanctions could still provide near-term support to crude markets.

Traders are now awaiting fresh U.S. inventory figures from the American Petroleum Institute (API) later in the day for additional signals. A preliminary Reuters poll indicated that U.S. crude stockpiles likely rose last week.

The U.S. dollar remained steady near its strongest levels in three months on Tuesday, as traders scaled back expectations for further Federal Reserve rate cuts, while the British pound weakened amid renewed political pressure on Finance Minister Rachel Reeves.

At 04:35 ET (09:35 GMT), the Dollar Index, which measures the greenback against a basket of six major currencies, rose 0.1% to 99.770, hovering near its highest point since August.

Dollar Steadies Near Highs

The dollar held firm early Tuesday, as uncertainty grew around the future path of U.S. monetary policy with the ongoing federal shutdown keeping key data releases off the calendar.

The Federal Reserve lowered rates last week, but Chair Jerome Powell signaled it could be the final cut of the year. However, San Francisco Fed President Mary Daly said Monday she would “keep an open mind” regarding the December meeting, while Fed Governor Lisa Cook described the upcoming gathering as “live” for a potential policy move.

“This week is all about reassessing December Fed rate cut expectations,” analysts at ING wrote in a note. “Recent Fed commentary has clearly suggested lower conviction on a preset easing path, which implies some greater data dependency.”

Yet, that data dependency is complicated by the government shutdown, which has halted key economic releases such as the JOLTS job openings report.

“As a result, the few data points we do get – especially tomorrow’s ADP report – can have an outsized impact on markets, while the broader lack of data may lead to more spells of directionless FX trading,” added ING.

Sterling Slips Amid Political Tensions

In Europe, GBP/USD fell 0.4% to 1.3088, as comments from Rachel Reeves, the U.K. finance minister, rattled investors. Reeves said earlier that she would do what is “necessary – not popular – to protect the country against high inflation and high interest rates.”

Reeves is widely expected to introduce tax hikes in the November 26 budget, a move that would contradict her earlier campaign pledge not to raise taxes for “working people.” While politically risky, such action may be required for her to meet fiscal targets — a factor closely watched by bond markets.

Meanwhile, EUR/USD edged 0.1% lower to 1.1509, after briefly touching a three-month low, following weak data showing stagnation in eurozone manufacturing activity during October.

“The slew of post-meeting ECB speakers has added little to the policy narrative. The Governing Council is broadly on the same page with the rates view, and the feeling is that some substantial data surprises are now needed to create new division among policymakers,” said ING.
“If anything, we think the ECB might cut once again, but the risks at the moment aren’t high, and we predict that the easing cycle is over.”

Last week, the European Central Bank kept its key interest rate unchanged at 2% for the third consecutive meeting.

Yen Rebounds After Weakness

In Asia, USD/JPY slipped 0.5% to 153.51, as the yen rebounded from an eight-and-a-half-month low. Japan’s Finance Minister Satsuki Katayama reiterated Tuesday that the government would continue to monitor foreign exchange movements “with a high sense of urgency.”

Although Bank of Japan Governor Kazuo Ueda hinted last week that a rate hike could come as early as December, investors remained skeptical given the central bank’s cautious tone.

Elsewhere, USD/CNY gained 0.1% to 7.1237, while AUD/USD fell 0.3% to 0.6517, after the Reserve Bank of Australia kept interest rates unchanged at 3.60%, as expected.

The Australian central bank noted that inflation remains “materially higher than expected” and warned it would take time to bring price growth back to target — a signal that no immediate policy shift is likely.

Hamak Strategy Limited (LSE:HAMA) has released the voting results from its Extraordinary General Meeting (EGM) held on November 3, 2025, where shareholders approved a resolution authorizing the waiver of pre-emption rights relating to the allotment and issue of new shares.

A total of 155,499,125 votes were cast on the resolution, representing 34.39% of the company’s issued share capital. Of these, 152,985,135 votes (98.38%) were in favor, while 2,513,990 votes (1.62%) opposed the proposal. No votes were withheld.

Last month, the company announced the first drilling results from its joint venture with First Au Limited (ASX:FAU) on its 65% owned Nimba gold project.

Nick Thurlow, Executive Chairman of Hamak Strategy, said:“We are greatly encouraged by the wide intersections of gold mineralisation returned from the first hole assay results, which confirm the depth extensions to the high-grade discovery made by Hamak. We look forward to advancing the drilling programme and reporting further assay results, in partnership with and funded by our JV partners, First Au Limited.”

About Hamak Strategy Limited

Hamak Strategy Limited is a UK-listed company engaged in gold exploration across Africa. The firm is also developing a compliant Bitcoin and cryptocurrency treasury management strategy as part of its broader diversification and capital optimization initiatives. The company was formerly known as Hamak Gold Ltd but changed its name in September 2025.

U.S. stock futures edged lower on Tuesday as investors weighed comments from Federal Reserve officials, fresh corporate earnings, and an increasingly uncertain economic outlook. The session followed a mixed start to November trading, with tech names under renewed pressure after Palantir’s post-earnings decline.

Futures Slide

By 02:58 ET, Dow futures were down 313 points (0.7%), S&P 500 futures lost 61 points (0.9%), and Nasdaq 100 futures dropped 311 points (1.2%).

Wall Street ended Monday mixed — the Dow Jones Industrial Average slipped, while the S&P 500 and Nasdaq Composite posted modest gains.

Investors continued to assess recent dealmaking activity. Kimberly-Clark (NASDAQ:KMB) announced plans to acquire Kenvue (NYSE:KVUE) — maker of Band-Aid — in a $40 billion deal, though analysts flagged potential legal risks. Meanwhile, OpenAI revealed a $38 billion agreement with Amazon (NASDAQ:AMZN) to expand its cloud capabilities, marking the ChatGPT creator’s first major move since its corporate restructuring last week.

Fed Comments Add to Market Uncertainty

Divisions among Fed officials have become more visible. In her first remarks since President Donald Trump’s failed attempt to remove her, Fed Governor Lisa Cook said there was ongoing debate over the central bank’s dual mandate and noted that December’s meeting is a “live” one, indicating uncertainty about the next rate decision.

Similarly, San Francisco Fed President Mary Daly described last week’s rate cut as a form of “insurance” against further labor market weakness but emphasized she would keep an “open mind” ahead of next month’s meeting.

Palantir Shares Fall Despite Strong Quarter

Palantir (NASDAQ:PLTR) shares dropped in extended trading, despite the company reporting record third-quarter revenue and profit that exceeded expectations. The firm, known for its defense and data analytics software, posted net profit of $475.6 million on $1.18 billion in sales, both above forecasts.

CEO Alex Karp said the company is “now producing more profit in a single quarter than it did in revenue not long ago.” Palantir also guided for stronger-than-expected fourth-quarter sales, boosted by rising AI demand.

Even so, the stock’s 175% surge this year has raised concerns about lofty valuations in AI-related equities, dragging down other major tech names in Europe during early trading.

AMD Set to Report Results

Advanced Micro Devices (NASDAQ:AMD) will report its latest quarterly results after the bell, joining the growing list of AI chipmakers releasing earnings amid a wave of new deals in the sector.

According to Reuters, the U.S. Department of Energy has launched a $1 billion partnership with AMD to build two supercomputers for advanced research in medicine and national security. The company also recently announced a multi-year supply agreement with OpenAI, which could generate billions in annual revenue and grant the AI firm a 10% stake in AMD.

Executives at AMD — a top rival to Nvidia — called the partnership “certainly transformative” for both companies and the wider AI industry. AMD shares have climbed over 115% this year, reflecting investor enthusiasm for the sector.

BP Tops Profit Expectations

BP (NYSE:BP) reported third-quarter adjusted net income of $2.21 billion, above forecasts of $2.02 billion, as stronger refining margins helped offset lower oil prices. The company maintained its $750 million share buyback and expects to complete $5 billion in asset disposals this year.

“We’ve delivered another quarter of good performance across the business with operations continuing to run well,” said CEO Murray Auchincloss. “We are looking to accelerate delivery of our plans, including undertaking a thorough review of our portfolio to drive simplification and targeting further improvements in cost performance and efficiency,” he added.

BP’s net debt stood at $26.05 billion, slightly higher than last year’s $24.27 billion, as the company continues its strategic reset to streamline operations and improve returns.

Norway’s Wealth Fund Rejects Musk’s $1 Trillion Tesla Pay Deal

The Norwegian sovereign wealth fund, the world’s largest, said it will vote against Tesla’s (NASDAQ:TSLA) proposed $1 trillion compensation package for CEO Elon Musk, citing governance concerns.

The fund stated that while it “appreciate[s] the significant value created under Mr. Musk’s visionary role,” it is “concerned about the total size of the award, dilution, and lack of mitigation of key person risk.”

Holding a 1.2% stake in Tesla, the fund ranks as the company’s sixth-largest institutional investor. Other major shareholders — including BlackRock, Vanguard, and State Street — have not yet disclosed their voting intentions.

Tesla will hold its annual shareholder meeting later this week, where the results of the vote will be announced. Under the proposed plan, Musk would receive an additional 12% equity stake if he succeeds in driving Tesla’s valuation to $8.5 trillion within the next decade — a goal tied to the company’s pivot toward AI and robotics.

European stocks slipped on Tuesday as investors took profits following a string of record highs and amid lingering uncertainty over the region’s economic outlook. The pullback also came as markets digested a wave of fresh corporate earnings.

As of 08:05 GMT, Germany’s DAX fell 1.4%, France’s CAC 40 lost 1.4%, and the U.K.’s FTSE 100 traded 0.7% lower.

Investors Lock In Gains

Global equities have rallied to record levels this year, from New York to Tokyo, and European indices have followed suit. The DAX is up more than 20% year-to-date, the FTSE 100 has gained over 18%, while France’s CAC 40, weighed down by political uncertainty, has risen by just under 10%.

However, sentiment remains cautious as growth momentum across the eurozone remains fragile. Many investors are now cashing in on recent gains amid signs of slowing economic activity.

Recent data showed that eurozone manufacturing activity stalled in October, with the final PMI reading at 50.0, precisely on the threshold separating expansion from contraction. The picture varies across member states: Greece (53.5) and Spain (52.1) showed strong improvements, while Germany (49.6) and France (48.8) continued to contract.

Meanwhile, expectations for further monetary easing by the European Central Bank are fading. The ECB held interest rates steady last week for the third consecutive meeting, and markets largely expect no change in December’s policy decision.

BP Leads Earnings Headlines

Earnings season continued in Europe with several major companies reporting on Tuesday. BP (LSE:BP.) posted a third-quarter underlying replacement cost profit of $2.21 billion, beating forecasts, and kept its $750 million share buyback unchanged. The company also reaffirmed its plan for $5 billion in asset disposals this year.

Associated British Foods (LSE:ABF), owner of Primark, Twinings, and Ovaltine, reported lower annual profit and announced a strategic review that could result in separating its retail and food divisions.

In Germany, Hugo Boss (TG:BOSS) said sales and operating profit for the year would come in at the lower end of its guidance, after reporting weaker-than-expected third-quarter results.

Philips (EU:PHIA) raised the upper end of its full-year margin forecast, reporting strong third-quarter earnings driven by rising orders and expanded profitability.

Domino’s Pizza (LSE:DOM) delivered a rise in like-for-like sales in the third quarter, supported by price adjustments, new menu items, and loyalty initiatives that helped sustain demand in a challenging market.

Elsewhere, Norway’s Aker ASA (TG:FKM) posted a solid third quarter, with growth in net asset value and strong investment activity in artificial intelligence and real estate.

Oil Prices Ease on Supply Concerns

Oil prices slipped as traders reacted to the latest OPEC+ meeting, which resulted in a modest production increase for December and a pause in early 2026. Brent crude dropped 1% to $64.27 a barrel, while WTI fell 1% to $60.46. Investors now await U.S. inventory data from the American Petroleum Institute later in the day for further direction.

BP plc (LSE:BP.) reported an underlying replacement cost (RC) profit of $2.21 billion for the third quarter, narrowly surpassing analyst forecasts of $2.02 billion. The figure was slightly below the $2.27 billion earned in the same period last year.

The energy giant maintained its quarterly share buyback program at $750 million and reaffirmed expectations for around $5 billion in asset sales over the course of the year. Net profit for the period totaled $2.3 billion, compared with $2.35 billion in the previous quarter. Operating cash flow reached $7.8 billion, while adjusted EBITDA increased to $9.98 billion, up from $9.65 billion a year earlier.

“We’ve delivered another quarter of good performance across the business with operations continuing to run well,” said Murray Auchincloss, BP’s Chief Executive Officer. “We are looking to accelerate delivery of our plans, including undertaking a thorough review of our portfolio to drive simplification and targeting further improvements in cost performance and efficiency,” he added.

BP’s net debt stood at $26.05 billion at the end of the quarter, largely unchanged from the prior three months but higher than $24.27 billion a year earlier. The results come roughly eight months after the company launched a major strategic overhaul designed to streamline operations, improve efficiency, and enhance shareholder returns.

Chrysalis Investments Limited (LSE:CHRY) reported that its unaudited net asset value (NAV) per ordinary share stood at 171.65 pence as of 30 September 2025, marking a 1.1% decrease from the previous quarter’s figure of 30 June. Despite the modest quarterly dip, the company achieved a 21.5% NAV increase over the full financial year, driven primarily by the strong performance of Starling Bank.

A key highlight of the quarter was Klarna’s initial public offering on the New York Stock Exchange on 9 September, priced at $40 per share and valuing the fintech firm at around $15 billion. Chrysalis did not sell any shares during the IPO and remains under a six-month lock-up agreement. While Klarna’s stock initially performed well, it softened toward the end of the quarter amid broader weakness in the fintech sector.

Starling Bank continued to advance its product suite, launching new AI-driven features such as “Spending Intelligence” in June and “Scam Intelligence” in October. The bank also expanded its footprint through the August acquisition of Ember, an accounting and tax software provider for small and medium-sized enterprises.

Richard Watts and Nick Williamson, Managing Partners of Chrysalis Investment Partners LLP, reiterated their confidence in Starling’s growth potential, referencing the CFO’s comment that he saw a “credible path to £100 million of recurring revenue within two years.”

During the quarter, Chrysalis executed its Capital Allocation Policy, repurchasing £17 million of its own shares. By 30 September, total capital returned to shareholders had reached £86 million, increasing to £93 million by the end of October.

As of 30 September, the company held gross cash and equivalents of approximately £118 million, along with positions in Klarna and Wise valued at around £115 million and £3 million respectively. This provided a total liquidity position of roughly £236 million, equivalent to 27% of NAV. Shortly after the quarter’s close, Chrysalis repaid £10 million of its term loan, reducing the outstanding balance to £60 million.

International Workplace Group Plc (LSE:IWG) reported third-quarter system-wide revenue of $1.13 billion, a 4% year-on-year increase that narrowly missed analyst expectations. The company continued to expand its global footprint of flexible workspaces, but shares fell 2.6% as investors reacted to uneven performance across business segments.

The managed and franchised division remained a standout performer, posting a 36% increase in system-wide revenue and an 83% surge in recurring management fees compared with the same period last year. In contrast, company-owned revenue came in at $806 million—below analyst forecasts of $833 million—and was broadly flat on a yearly basis.

“I am pleased with the financial results in the third quarter of 2025,” said Mark Dixon, Chief Executive of IWG. “The incremental investment we have made in our Managed & Franchised segment has already led to an acceleration in the number of locations we have opened and added to the pipeline as we continue to expand our network and coverage.”

The company reported a significant uptick in network growth, with 335 new signings during the quarter, up 43% year-over-year, and 215 new location openings, a 41% increase. These gains reflect IWG’s capital-light growth model, which emphasizes partnerships and franchising.

Revenue per available room (RevPAR) for the company-owned business stood at $354, down 3% year-on-year but showing sequential improvement compared with the first half. IWG said its occupancy growth strategy is progressing and expected to support stronger revenue momentum through the final quarter and into 2026.

Revenue from the Digital and Professional Services division totaled $106 million, a decline of 8% year-on-year, though underlying revenue remained stable once an exited contract was excluded.

Net financial debt rose to $813 million from $754 million at the end of June, driven in part by the company’s share buyback activity, which totaled $47 million during the period.

IWG reaffirmed its full-year 2025 guidance, maintaining its adjusted EBITDA target and its medium-term ambition to deliver at least $1 billion in EBITDA. The company also reiterated plans to return a minimum of $140 million to shareholders during 2025.