Category: Market News

European equities delivered a mixed performance on Monday as traders positioned themselves ahead of a busy week packed with interest rate decisions from the U.S. Federal Reserve, the Swiss National Bank, the Reserve Bank of Australia, and the Bank of Canada.

German industrial output surprises to the upside

Fresh data out of Germany showed an unexpected acceleration in industrial production during October. Destatis reported that output rose 1.8% month-over-month, far exceeding expectations for a sharp slowdown to just 0.2% after a revised 1.1% rise in September.

On an annual basis, production increased 0.8%, reversing September’s 1.4% drop.

Major indices show mixed performance

The DAX edged 0.3% higher, while both the FTSE 100 and CAC 40 slipped 0.1% in early trading.

Corporate movers

• Kloeckner & Co (TG:KCO) surged 18% after confirming discussions over a potential voluntary takeover offer from U.S. metals processor Worthington Steel.
• Stabilus (TG:STM) fell 1.7% as the car parts supplier reported weaker fiscal 2025 profits, citing difficult market conditions, global tariff tensions, and mounting pricing pressure in the auto sector.
• BNP Paribas (EU:BNP) ticked slightly higher after agreeing to sell its 25% stake in AG Insurance to Ageas for €1.9 billion.
• L’Oréal (EU:OR) slipped nearly 2% following news it will double its ownership in Galderma.
• Sandoz (LSE:0SAN) climbed 3% after finalizing its purchase of Just-Evotec Biologics EU SAS from Evotec SE.
• Smith & Nephew (LSE:SN.) added 1.6% as the medical devices group presented a refreshed strategic roadmap, updated 2026 guidance, and long-term goals through 2028 at its Capital Markets Day.
• Unilever (LSE:ULVR) dropped 3.8% after completing the spinoff of its ice cream unit, now trading as The Magnum Ice Cream Company (TMICC) (LSE:MICC).

Meta (NASDAQ:META) is set to introduce a new choice for Facebook and Instagram users across the European Union, allowing them to access versions of the platforms that rely on less personal data for advertising, the European Commission confirmed.

Under the updated framework, individuals in the EU will be asked to decide whether they want to consent to full data sharing—with ads tailored extensively to their activity—or limit the data they provide and receive a service with only lightly personalized advertising.

Meta expects to begin offering these options in January 2026.

The change follows extended discussions with the Commission after regulators ruled in April 2025 that Meta’s approach to user consent did not meet the standards required under the Digital Markets Act. Once the new model goes live, EU officials plan to gather feedback to assess how widely it is adopted and whether it effectively brings Meta into compliance.

Quantum Base Holdings Plc (LSE:QUBE) has extended the deadline for its Retail Offer, which will now remain open until 10 December 2025. The company confirmed that the New Shares issued as part of the offer are expected to qualify for both Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) reliefs—an addition that could boost their appeal among investors seeking tax-efficient opportunities.

The fundraising, conducted via RetailBook, aims to secure around £750,000 through the issue of new ordinary shares. Participation is available to both existing shareholders and new investors, with a minimum investment threshold of £250. Proceeds are earmarked for growth-related working capital, balance sheet reinforcement, and ongoing needs across staffing, operations, and product development.

The Retail Offer remains subject to shareholder approval and hinges on the successful completion of a separate institutional placing. Admission of the new shares to trading is slated for 22 December 2025.

More about Quantum Base Holdings Plc

Quantum Base Holdings Plc is active in the quantum technology space, specializing in the development of cutting-edge quantum security products. Its offerings support sectors requiring ultra-secure data protection and next-generation encryption capabilities.

Crude prices steadied on Monday close to their strongest levels in two weeks, supported by expectations that the U.S. Federal Reserve will lower interest rates this week — a shift that traders believe could stimulate economic activity and fuel additional demand for energy. Geopolitical tensions affecting Russian and Venezuelan output added another layer of support.

By 07:22 GMT, Brent crude edged up 14 cents, or 0.22%, to $63.89 a barrel, while U.S. West Texas Intermediate rose 15 cents, or 0.25%, to $60.23. Both benchmarks finished Friday at their highest settlements since November 18.

LSEG data shows that markets currently assign an 84% probability to a quarter-point reduction in U.S. rates at the Fed’s meeting on Tuesday and Wednesday. Yet comments from policymakers suggest deep divisions within the central bank, prompting investors to closely examine any signals about the direction of future policy.

Progress on Ukraine peace negotiations in Europe remained limited, with major disagreements still unresolved around Kyiv’s long-term security and Russia’s territorial claims. U.S. and Russian officials also remain far apart on the peace proposal promoted by the administration of U.S. President Donald Trump.

Analysts at ANZ highlighted the wide range of possible geopolitical outcomes, writing: “The various potential outcomes from Trump’s latest push to end the war could release a swing in oil supply of more than 2 million barrels per day.”

Commonwealth Bank of Australia analyst Vivek Dhar noted that opposing forces continue to shape the outlook for crude, saying that a ceasefire would be the most significant bearish factor, while further damage to Russia’s energy infrastructure would be strongly supportive of prices.

Dhar added: “We think oversupply concerns will eventually be realised, especially as Russian oil and refined product flows eventually circumvent existing sanctions, prompting futures to gradually track towards $60/bbl through 2026.”

Reuters reported that the G7 and European Union are discussing replacing the current price cap on Russian oil with a full maritime services ban — a measure that would likely restrict supply further by limiting shipping and insurance access for Russia’s crude exports.

The United States has also increased its pressure on Venezuela, another OPEC producer. Recent actions include strikes on vessels it accused of smuggling drugs, as well as renewed talk in Washington of possible military steps aimed at removing President Nicolás Maduro.

Meanwhile, buying activity from Chinese independent refiners has picked up, with traders and analysts indicating that new import quotas have enabled them to draw more heavily on sanctioned Iranian crude held in onshore storage, helping to ease a buildup of excess supply.

Gold prices nudged upward in Asian trade on Monday, buoyed by a softer U.S. dollar that remained close to a five-week low. Expectations that the Federal Reserve will move ahead with an interest-rate cut this week continued to underpin sentiment, though lingering caution kept gains limited.

Spot gold was up 0.3% at $4,208.55 an ounce by 03:28 ET (08:28 GMT), while February U.S. gold futures dipped 0.3% to $4,2371.10.

Softer dollar boosts bullion but upside capped by caution

With the dollar on the back foot, gold became more appealing to international buyers, as a weaker greenback effectively reduces bullion’s cost in global markets.

The currency’s slide reflects a growing conviction that the Fed will lower rates at its Dec. 9–10 meeting. That view strengthened after a stretch of softer data and Friday’s delayed core PCE print — the Fed’s preferred inflation gauge — revealed subdued monthly and annual price pressures.

Recent economic indicators, including weaker private hiring and signs of cooling in the broader labor market, have reinforced expectations that the Fed is prepared to start easing.
Lower interest rates generally enhance gold’s attractiveness by reducing the opportunity cost of holding non-yielding assets.

Even so, gold’s advance was restrained as Treasury yields continued to edge higher, offsetting part of the benefit of the weaker dollar. Mixed messaging from Fed officials has also injected a degree of uncertainty, with some policymakers warning against cutting rates too soon. That divergence has kept traders wary of a potentially less-dovish stance on Wednesday.

Market participants now await the Fed’s decision and Chair Jerome Powell’s remarks for a clearer signal on the policy trajectory.

Broader metals market quiet ahead of central bank cues

Trading was subdued across other precious and industrial metals as investors largely stayed on the sidelines.

Silver futures slipped 0.6% to $58.708 per ounce, and platinum futures eased 0.3% to $1,663.60 per ounce.

Copper saw mixed moves: benchmark LME copper inched up 0.3% to $11,681.20 a ton, while U.S. copper futures retreated 0.7% to $4.67 a pound.

The U.S. dollar slipped slightly on Monday as the new trading week kicked off, with investors bracing for a pivotal Federal Reserve meeting that is widely expected to bring easier monetary policy.

By 04:15 ET (09:15 GMT), the Dollar Index — which measures the greenback against six major currencies — edged down 0.1% to 98.940, keeping it close to its lowest level in more than a month.

Fed anticipation keeps the dollar on the back foot

Most traders see a rate cut as the likely outcome when the Fed wraps up its two-day gathering on Wednesday. The case for easing strengthened after Friday’s delayed core PCE inflation reading came in softer than anticipated. Futures markets tracked by CME’s FedWatch tool now imply an 88% probability of a cut.

With little U.S. data scheduled for Monday, attention is shifting to Tuesday’s JOLTS job openings report — which may carry extra weight given that the monthly nonfarm payrolls release will arrive only after the Fed has already delivered its decision.

Analysts at ING wrote: “The Fed could be a positive event risk for the dollar in that it seems hard for the Fed to validate the 90bp of easing priced into Fed Funds futures by early 2027.”

They continued: “However, the potential formal nomination of Kevin Hassett as Fed Chair over the coming months and the seasonal factors keeping the dollar weak into year-end should limit the dollar’s upside.”

Euro climbs as ECB signals shift and German output beats forecasts

EUR/USD rose 0.1% to 1.1654 after Germany posted a surprisingly strong industrial production increase of 1.8% in October, far above the forecast 0.4%.

The euro also drew support from comments by ECB policymaker Isabel Schnabel, who told Bloomberg News that the central bank’s next step could be a rate hike — challenging expectations from those still looking for another cut.

As ING noted: “These remarks probably need to be seen in the context of her hawkish background and perhaps as a foil to those at the ECB still favoring one last rate cut.”

The firm added that Schnabel has hinted the ECB could upgrade its growth projections in its next forecast round.

The British pound backed off slightly, with GBP/USD slipping 0.1% to 1.3325 as traders adjusted positions ahead of next week’s Bank of England rate meeting.

Yen softens after Japan’s GDP revised lower

USD/JPY edged up 0.1% to 155.44 after new figures confirmed that Japan’s economy shrank more sharply in the third quarter than first estimated, pressured by weak investment and sluggish exports.

Even so, the revision did little to change expectations that the Bank of Japan is still likely to raise rates next week, with market focus turning to upcoming labor and inflation indicators.

China’s trade surplus expands; Australian dollar pulls back

USD/CNY ticked higher to 7.0714 despite data showing that China’s trade surplus widened in November, supported by a 5.9% surge in exports year over year, while imports grew only modestly.

AUD/USD slipped 0.1% to 0.6636, easing after last week’s strong performance driven by signs of improving domestic economic momentum.

U.S. stock futures ticked higher on Monday as traders prepared for the Federal Reserve’s final policy decision of the year. Markets were also weighing the ramifications of Netflix’s proposed takeover of Warner Bros Discovery’s entertainment assets. In Asia, Japan reported a deeper-than-expected economic contraction, while China posted a strong rebound in exports despite a sharp drop in shipments to the United States.

U.S. futures climb as markets await the Fed

U.S. equity futures saw modest gains early Monday, extending last week’s upward momentum.

As of 02:40 ET:

• S&P 500 futures were up 0.2%
• Nasdaq 100 futures advanced 0.3%
• Dow futures added 0.1%

All three major U.S. indices finished last week in positive territory for a second consecutive week, with the S&P 500 and Nasdaq achieving four-session winning streaks. Optimism is being supported by expectations that the Fed will cut interest rates on Wednesday following Friday’s softer-than-expected core PCE reading. According to CME’s FedWatch tool, traders currently assign an 88% probability to a rate cut.

Netflix’s $72B bid for Warner Bros Discovery sets the stage for regulatory fights

Netflix (NASDAQ:NFLX) confirmed plans to acquire the TV, film, and streaming arms of Warner Bros Discovery (NASDAQ:WBD) in a blockbuster $72 billion deal. But the streaming giant is likely to face a lengthy gauntlet of regulatory reviews.

Anthony Saglimbene of Ameriprise Financial noted: “The largest factor of a deal of this size and complexity is the potential regulatory hurdles that these two companies are going to have to go through.”

He continued: “Both companies probably expect that they may need to sell assets to close the deal. And I think there’s more than enough room for them to do that.”

Hollywood unions and cinema groups have already voiced concerns that the merger could lead to layoffs, consolidate too much industry power, and reduce theatrical releases.

Adding to the drama, U.S. President Donald Trump said on Sunday: “I’ll be involved in that decision,”
and warned that the market influence of a merged company could be problematic: “That’s going to be for some economists to tell…. But it is a big market share. There’s no question it could be a problem.”

Japan’s GDP drops more sharply than anticipated

Updated figures released Monday show Japan’s economy contracted at an annualized 2.3% in the third quarter — worse than the initial estimate of -1.8%. Quarter-over-quarter GDP also declined by 0.6%, reflecting deeper economic strain.

The weakness sheds light on Prime Minister Sanae Takaichi’s recently announced stimulus plan, the largest new spending effort since the pandemic, which the government expects will boost GDP by about 1.4 percentage points annually over the next three years.

Despite this contraction, the Bank of Japan is still widely expected to raise interest rates at its Dec. 18–19 meeting, given that inflation has remained at or above 2% for more than three and a half years.

China’s trade surplus widens as exports rebound

Chinese exports staged an unexpected recovery in November, rising 5.9% year-on-year, while imports climbed 1.9%. This pushed China’s monthly trade surplus to $111.68 billion, well above economists’ projections.

The surge was driven largely by stronger exports to Europe, Australia, and Asian markets, offsetting a 29% plunge in shipments to the United States as companies adapt to the impact of President Trump’s tariffs.

Oil prices hover near recent highs

Crude prices moved slightly higher Monday, continuing to trade near two-week highs on expectations that a Fed rate cut could boost economic activity and energy demand.

• Brent crude: $63.85 (+0.2%)
• WTI: $60.20 (+0.2%)

Both benchmarks closed Friday at their highest levels since Nov. 18.

Meanwhile, Reuters reported that the G7 and European Union are considering replacing the Russian oil price cap with a full ban on maritime services for Russian crude — a move that could further tighten global supply.

European equities started the week on a subdued note Monday, with traders reluctant to make bold moves ahead of the Federal Reserve’s closely watched policy announcement later this week.

By 08:25 GMT, Germany’s DAX was down 0.1%, France’s CAC 40 slipped 0.3%, while the U.K.’s FTSE 100 posted a modest 0.1% gain.

Fed decision takes center stage

The Fed is widely expected to cut interest rates on Wednesday, especially after last week’s delayed release of September’s core PCE index showed weaker-than-expected inflation. Futures markets tracked by CME’s FedWatch tool indicate an 88% probability of a rate cut.

Still, the outlook for future policy remains uncertain. Fed officials appear divided over how persistent inflation risks are and how resilient the U.S. economy remains, leaving the central bank’s forward guidance in focus.

A busy week for central banks globally

The Fed is just one of several monetary authorities meeting in the coming days. Markets will also hear from the Swiss National Bank, the Reserve Bank of Australia, and the Bank of Canada this week.

Next week, attention shifts to the Bank of England, the European Central Bank, and the Bank of Japan as they deliver their latest policy assessments.

German industrial output surprises to the upside

Fresh data released Monday showed German industrial production jumping 1.8% in October from the previous month—far above expectations for a 0.4% rise. The stronger reading offers a glimmer of optimism for the eurozone’s largest economy as the year winds down.

Still, Germany’s recovery is expected to remain muted. The German Economic Institute (IW) recently projected GDP growth of just 0.1% for 2025 after two years of contraction, before an acceleration to 0.9% in 2026.

Unilever completes ice cream business spin-off

In corporate news, shares of Unilever (LSE:ULVR) slipped after the company confirmed the separation of its ice cream division. The newly independent Magnum Ice Cream Company—now the largest standalone ice cream business globally and owner of brands such as Wall’s, Ben & Jerry’s, and Cornetto—has secured a primary listing on Amsterdam’s Euronext exchange, with secondary listings in London and New York to follow.

Oil holds near two-week highs

Crude prices edged up Monday, staying close to their highest levels in two weeks as expectations for a Fed rate cut bolstered hopes of stronger economic activity and energy demand. Brent futures rose 0.3% to $63.92 per barrel, while U.S. West Texas Intermediate futures gained 0.3% to $60.28 per barrel. Both benchmarks ended Friday at their strongest close since November 18.

Beyond monetary policy, geopolitical developments continue to influence oil markets. With progress toward peace in Ukraine still limited, Reuters reports that the G7 and European Union are considering replacing the price cap on Russian oil with a full maritime services ban — a move that could further restrict supplies from the world’s second-largest oil exporter.

BNP Paribas Group (EU:BNP) has reached an agreement to sell its 25% shareholding in AG Insurance to Ageas for €1.9 billion, while simultaneously reinforcing a long-term partnership focused on bancassurance activities in Belgium.

The framework agreement, signed on Sunday, renews the exclusive cooperation between AG Insurance and BNP Paribas Fortis and sets the stage for accelerated growth — particularly in digital offerings. The renewed partnership spans savings products, protection solutions, and property & casualty insurance.

As part of the broader deal, BNP Paribas Cardif — which currently owns 14.9% of Ageas — will provide a €1.1 billion capital contribution to Ageas. Using the agreed valuation of €60 per share, BNP Paribas Cardif’s stake would rise to 22.5% once the transaction closes.

Completion is expected in the second quarter of 2026, subject to regulatory validation. BNP Paribas forecasts a post-tax capital gain of €820 million in 2026 and anticipates a 5-basis-point uplift to its CET1 ratio after distribution. The group also expects an annual recurring boost of €40 million to its net income.

In addition, AG Insurance and BNP Paribas Asset Management will establish a long-term investment partnership across select asset classes, leveraging the asset manager’s expanded platform for insurers and pension funds following its recent integration with AXA IM.

Jean-Laurent Bonnafé, CEO of BNP Paribas, stated: “We see significant potential in the growth prospects of BNP Paribas Fortis’ bancassurance business through the partnership with AG Insurance, as well as the deployment of our new asset management platform’s expertise created through the combination of BNP Paribas AM and AXA IM.”

Hans De Cuyper, CEO of Ageas, said that acquiring full ownership of AG will strengthen the group’s Belgian operations while reinforcing the renewed bancassurance relationship with BNP Paribas Fortis. He noted that this deal represents the second time Ageas has increased its financial ambitions under its Elevate27 strategy.

L’Oréal SA (EU:OR) announced Monday that it will acquire a further 10% interest in Galderma Group AG (BIT:1GALD), doubling its ownership to 20% as the company deepens its presence in the medical aesthetics sector. The added shares are being purchased from a consortium led by EQT, which includes Sunshine SwissCo GmbH, the Abu Dhabi Investment Authority, and Auba Investment Pte. Ltd.

Financial details of the deal were not disclosed.

With the expanded holding, Galderma’s board is expected to consider nominating two non-independent directors from L’Oréal to replace EQT consortium representatives at the 2026 Annual General Meeting.

“Aesthetics is a key adjacency to our core beauty business that we are keen to continue to explore. Our initial strategic investment made in 2024 in Galderma has proven very successful and therefore we are eager to solidify and extend the partnership further,” said Nicolas Hieronimus, Chief Executive Officer of L’Oréal.

The transaction will be executed via an off-market block trade with the EQT-led group. L’Oréal intends to finance the acquisition through available cash and credit facilities, with completion targeted for the first quarter of 2026 pending regulatory approval.

L’Oréal noted that it remains committed to supporting Galderma’s long-term strategy and operational independence under CEO Flemming Ørnskov, adding that it does not plan to increase its stake beyond 20%. Both companies will also explore expanding their scientific collaboration to build on shared expertise.

After closing, L’Oréal will account for its Galderma stake using the equity method, and the existing shareholder agreement between L’Oréal and SSCO will be dissolved.