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U.S. stock futures pointed to a weaker open on Thursday, as investors digested a wave of corporate earnings from major technology companies and assessed the implications of the Federal Reserve’s latest rate decision.

As of early premarket trading, the Dow Jones, S&P 500, and Nasdaq futures were all in negative territory, suggesting a softer start for Wall Street after a volatile midweek session that ended with mixed results.

Tech Earnings Drive Early Pressure

A sharp selloff in major tech names looked set to weigh on sentiment at the open.
Meta Platforms (NASDAQ:META) plunged nearly 10% premarket, even after reporting better-than-expected third-quarter results, as the company warned of higher spending related to its artificial intelligence (AI) initiatives.

Microsoft (NASDAQ:MSFT) shares also slipped before the bell. The software giant topped forecasts for its fiscal first-quarter results but signaled that capital spending would accelerate through the year.

By contrast, Alphabet (NASDAQ:GOOGL) surged 7.9% premarket after the Google parent delivered strong results that beat expectations on both revenue and profit.

Outside of tech, Eli Lilly (NYSE:LLY) gained ground after posting stronger-than-expected third-quarter earnings and raising its full-year revenue outlook, adding support to the healthcare sector.

Geopolitics May Cushion Declines

Some optimism stemmed from news of progress following the high-profile meeting between U.S. President Donald Trump and Chinese President Xi Jinping.

The two leaders agreed to a series of trade-related measures aimed at easing tensions between Washington and Beijing.

The U.S. will reduce fentanyl-linked tariffs on Chinese imports from 20% to 10%, while China agreed to resume purchases of American soybeans and temporarily suspend new export restrictions on rare earths.

In exchange, Washington will pause implementation of its 50% penetration rule on export controls.

Recap: Wednesday’s Whipsaw Session

Stocks ended Wednesday’s session with pronounced swings as investors reacted to the Federal Reserve’s policy decision and comments from Chair Jerome Powell.

The Nasdaq Composite rose 0.6% to a record 23,958.47, driven by gains in hardware and semiconductor stocks. The S&P 500 ended virtually flat, down 0.30 points at 6,890.59, while the Dow Jones Industrial Average slipped 0.2% to 47,632.00.

Volatility spiked late in the session after Powell struck a cautious tone following the Fed’s widely expected 25-basis-point rate cut, which brought the federal funds rate down to a 3.75%–4.00% range.

Powell said another move in December was “not a foregone conclusion,” adding that officials held “strongly differing views about how to proceed” at the year’s final meeting.
He also cited growing uncertainty from the ongoing government shutdown, which has delayed key economic data releases.

The comments dampened expectations for further near-term easing. According to CME’s FedWatch Tool, the probability that the Fed will leave rates unchanged in December rose to 34.1%, up from 9.1% just a day earlier.

Sector Movers: Tech Shines, Real Estate Slumps

Despite the late-session volatility, the technology sector extended its rally, with the NYSE Arca Computer Hardware Index jumping 6.3% to a record high, powered by a 19% surge in Seagate Technology (NASDAQ:STX) after upbeat earnings.

Oil service stocks also advanced, tracking a rebound in crude prices, as the Philadelphia Oil Service Index climbed 2.6%.

However, interest rate-sensitive sectors came under pressure. The Dow Jones U.S. Real Estate Index dropped 2.6%, and the Philadelphia Housing Sector Index slid 2.3%.
Airlines also struggled, with the NYSE Arca Airline Index falling 1.4% on weaker travel sentiment.

European markets traded mostly lower on Thursday, as investor sentiment weakened following cautious remarks from Federal Reserve Chair Jerome Powell and a string of mixed earnings reports from major U.S. technology companies.

After a closely watched meeting between U.S. President Donald Trump and Chinese President Xi Jinping ended with few tangible breakthroughs, market focus shifted to the European Central Bank’s upcoming policy announcement later in the day.

The ECB is widely expected to keep interest rates unchanged for a third consecutive meeting, citing subdued inflation and steady, though modest, economic growth across the euro area.

Eurozone Economic Data

Fresh data from France offered a rare bright spot, showing that the eurozone’s second-largest economy grew faster than anticipated in the third quarter despite political uncertainty and global trade pressures.

According to national statistics agency INSEE, French GDP expanded 0.5% in Q3, following 0.3% growth in Q2, beating forecasts for a slowdown to 0.2%.

Market Overview

By midday, the CAC 40 in France had fallen 0.9%, the FTSE 100 in the U.K. was down 0.7%, and Germany’s DAX slipped 0.2%.

Corporate Movers

• Clariant (BIT:1CLN) advanced nearly 2% after the Swiss specialty chemicals firm reported a sharp improvement in Q3 profit margins.
• Electrolux (BIT:1ELUX) surged 18%, as the Swedish appliance maker returned to profit in the third quarter, reversing a loss from the same period last year.
• ING (EU:INGA) jumped 4.3% after posting better-than-expected Q3 earnings and announcing a €1.1 billion ($1.3 billion) share buyback.
• Stellantis (BIT:STLAM) dropped 4.2% after warning of one-time charges expected in the second half of the year.
• Volkswagen (BIT:1VOW3) added 1% despite reporting a €1.3 billion ($1.52 billion) operating loss for the quarter.
• Lufthansa (BIT:1LHA) climbed 5%, with Q3 operating earnings surpassing expectations.
• TotalEnergies (EU:TTE) slipped 1.2% after the French oil major posted a 2.4% decline in third-quarter earnings.
• Crédit Agricole (EU:ACA) lost 2.2% following a profit miss in its Q3 results.
• Peer Société Générale (EU:GLE) gained 1.6% after delivering a better-than-expected 11% increase in quarterly profit.
• Spain’s BBVA (NYSE:BBVA) dropped more than 2%, as Q3 profit declined 3.7% year over year.
• In London, Standard Chartered rose over 2% after raising its income and return guidance alongside stronger quarterly results.

The FTSE 100 edged lower in Thursday afternoon trading as losses across major European indices weighed on sentiment, while the British pound slipped to $1.31 and WPP shares tumbled following a sharp downgrade to the company’s full-year growth outlook.

By 12:07 GMT, the FTSE 100 was down 0.6%, while sterling dropped about 1% against the U.S. dollar. On the continent, Germany’s DAX index eased 0.2%, and France’s CAC 40 fell 0.9%.

UK Market Highlights

• WPP PLC (LSE:WPP) shares slumped after the advertising giant slashed its full-year guidance and posted weaker-than-expected third-quarter results. The company now expects like-for-like revenue less pass-through costs to decline 5.5% to 6.0% in 2025, a deeper drop than the prior forecast of 3% to 5%.
  Third-quarter reported revenue fell 8.4% year-on-year to £3.26 billion, or 3.5% on a like-for-like basis, while revenue less pass-through costs dropped 11.1% to £2.46 billion, reflecting a 5.9% like-for-like decline. WPP attributed the weaker performance to a notable deterioration in its media division compared with the previous quarter.
• Standard Chartered PLC (LSE:STAN) traded higher after the Anglo-Asian lender posted a stronger-than-expected third-quarter profit and raised its 2025 financial targets. The bank’s underlying pre-tax profit climbed 10% year-on-year to $1.99 billion, topping Bloomberg’s estimate of $1.79 billion.
• Shell PLC (LSE:SHEL) delivered another robust quarter, with income attributable to shareholders rising to $5.3 billion, up from $3.6 billion in the previous quarter and $4.3 billion a year earlier. Adjusted earnings climbed to $5.4 billion from $4.3 billion, while adjusted EBITDA increased to $14.8 billion from $13.3 billion.
• Computacenter PLC (LSE:CCC) also reported strong trading, saying its performance for the first nine months of 2025 was “comfortably ahead” of last year. The technology services firm noted sustained growth in North America, an improving trend in the UK, and a return to expansion in Germany.
• Haleon PLC (LSE:HLN) reaffirmed its full-year guidance, maintaining its organic revenue growth target of around 3.5% for 2025, slightly above the 3.4% analyst consensus, despite uneven regional results in the third quarter.
• Drax Group PLC (LSE:DRX) announced a deal to acquire three battery energy storage system projects from Apatura Limited for £157.2 million. The portfolio includes 260MW of two-hour storage capacity across sites in Scotland and England, with staged payments planned between 2025 and 2028 based on project milestones.
• Vodafone Group PLC (LSE:VOD) said it has signed a binding agreement to acquire Skaylink GmbH for €175 million from funds managed by Waterland. Skaylink is a cloud, digital transformation, and security services provider with offices across Germany and Europe, a move expected to bolster Vodafone’s enterprise capabilities.

Gold prices rebounded in Asian trading on Thursday, ending a four-session losing streak after the Federal Reserve’s latest rate cut offered some support and geopolitical uncertainty following Donald Trump’s meeting with Xi Jinping lent additional momentum.

By 02:51 ET (06:51 GMT), spot gold was up 1% at $3,967.03 per ounce, while U.S. gold futures slipped 0.4% to $3,983.10.

The precious metal had fallen for four straight sessions earlier this week, touching a three-week low, as investors locked in profits after last week’s surge to record highs above $4,300 per ounce and as safe-haven demand waned.

Fed Cut Lifts Gold, but Powell’s Comments Limit Gains

The Federal Reserve lowered its benchmark rate by 25 basis points, bringing it to a range of 3.75%–4.00%, in line with market expectations.

The move briefly pressured the U.S. dollar and boosted gold, which benefits from lower interest rates since it offers no yield. However, gains were limited after Fed Chair Jerome Powell stated that another rate cut in December was “far from a foregone conclusion.”

Powell’s cautious tone dampened optimism among traders hoping for a more aggressive easing cycle, keeping gold’s upside in check despite the supportive policy shift.

Trump-Xi Talks Offer Little Clarity but Support Sentiment

Geopolitical headlines also influenced trading sentiment. Trump and Xi met on Wednesday in Busan, South Korea, where Trump described the discussion as “amazing” and said both sides had agreed to reduce U.S. tariffs on Chinese goods to 47% from 57%.

He also announced that China would resume major purchases of U.S. soybeans and ease restrictions on rare-earth exports.

However, markets were left wanting more detail. No firm commitments emerged on more contentious issues such as semiconductors and broader agricultural trade. The absence of specifics kept traders cautious, even as the lack of clarity and the Fed’s dovish stance combined to lift gold off its recent lows below $3,900 per ounce.

Mixed Day for Metals; Copper Retreats from Record

Other metals saw mixed performances as investors assessed global macro developments.

Silver futures slipped 0.7% to $47.605 per ounce, while platinum futures gained 0.7% to $1,594.80 per ounce.

In base metals, benchmark copper futures on the London Metal Exchange (LME) fell 1.3% to $11,019.20 per ton, and U.S. copper futures edged 0.7% lower to $5.17 per pound.

Copper had reached a record high of $11,200.40 per ton on the LME during Wednesday’s session.

“Copper is rallying due to mounting supply disruptions, most recently Freeport’s declaration of force majeure at its giant Grasberg mine in Indonesia, and the wider risk-on mood ahead of the Trump-Xi meeting,” ING analysts said in a note.

The U.S. dollar slipped slightly on Thursday, paring some of its overnight gains as investors processed the Federal Reserve’s latest rate move and developments from U.S.-China trade discussions.

At 05:20 ET (09:20 GMT), the U.S. Dollar Index, which measures the greenback against six major peers, edged down 0.1% to 98.950, retreating after touching a two-week high late Wednesday.

Fed Cut Supports Dollar, but Future Easing in Question

The Federal Reserve delivered a 25-basis-point rate cut on Wednesday, bringing its benchmark range to 3.75%–4.00%, a widely anticipated move. However, expectations for another cut this year remain uncertain amid the lack of fresh economic data caused by the ongoing federal government shutdown.

During his post-meeting press conference, Fed Chair Jerome Powell emphasized that another rate reduction of similar size was “far from” guaranteed at the December meeting. Following his remarks, markets lowered the probability of another cut to 71%, down from 90% earlier in the day.

“Last night’s Fed communication makes it harder to sell the dollar now,” noted analysts at ING. “We will really need to see some soft U.S. jobs data to firm up views of another 75bp of easing from the central bank into next summer. Otherwise, 25bp could easily be priced out of that cycle.”

The dollar’s safe-haven appeal was further supported by uncertainty surrounding trade talks between President Donald Trump and Chinese President Xi Jinping.

Trump described their first in-person meeting in six years as “amazing,” saying that the U.S. would immediately lower tariffs on Chinese imports. In return, Trump said Beijing had agreed to help curb the flow of chemicals used to make fentanyl and to pause restrictions on exports of rare earth minerals.

Still, Vital Knowledge analysts commented that “the deliverables don’t really alter the status quo” of U.S.-China trade relations “dramatically.”

Euro Gains on Strong French GDP, Awaits ECB Decision

The euro edged higher, with EUR/USD rising 0.2% to 1.1618, after data showed that France’s GDP grew 0.5% in the third quarter, outpacing expectations for 0.2% growth. The French economy had expanded 0.3% in the previous quarter.

The eurozone’s broader GDP report is due later in the day and is projected to show modest growth of 0.1% quarter-over-quarter, translating to 1.2% annual growth.

“Remember that survey data has been encouraging, but the hard data has so far been poor this summer,” ING said. “But unless we get a big upside surprise to eurozone GDP – expected at 0.1% QoQ – it is hard to see EUR/USD getting much of a lift.”

Investors are also focused on the European Central Bank’s policy meeting, with the institution widely expected to keep rates unchanged.

“We doubt President Christine Lagarde will feel the need to rock the boat of market pricing, which very marginally favours another cut sometime over the next nine months,” ING added.

The British pound also inched higher, with GBP/USD up 0.1% to 1.3199, though it remained close to Wednesday’s 5½-month low.

Yen Weakens as BOJ Maintains Cautious Stance

In Asia, the Japanese yen fell after the Bank of Japan kept its interest rates unchanged and reiterated a cautious outlook for the economy. The USD/JPY pair traded 0.7% higher at 153.74.

The BOJ warned of heightened short-term uncertainty but said that accommodative financial conditions would help offset some of the risks. The central bank also reaffirmed that it would consider raising rates if economic growth and inflation evolve as projected.

Meanwhile, USD/CNY rose 0.2% to 7.1089, with the yuan retreating from its strongest level in a year following the Trump-Xi meeting. Trump told reporters afterward that he expected a trade deal with China “pretty soon,” adding that the two leaders had reached agreements on rare earths and agricultural purchases.

Elsewhere, the Australian dollar traded mostly flat, with AUD/USD steady at 0.6575.

U.S. stock futures were subdued on Thursday as investors navigated a flood of global developments — from the Federal Reserve’s latest rate cut to a high-profile meeting between Donald Trump and Xi Jinping, and a series of major tech earnings that underscored the industry’s multibillion-dollar push into artificial intelligence.

Futures drift amid global news flow

By 03:43 ET, Dow futures slipped 26 points (0.1%), S&P 500 futures were flat, and Nasdaq 100 futures edged down 12 points (0.1%).
The mixed tone followed a choppy Wall Street session on Wednesday, where the Dow Jones Industrial Average closed 0.2% lower, the S&P 500 was unchanged, and the Nasdaq Composite rose 0.6%, supported by Nvidia’s (NASDAQ:NVDA) record-breaking rally that pushed its valuation to $5 trillion — the first company to reach that milestone.

Investors also parsed a fresh batch of corporate earnings, including a strong performance from Caterpillar (NYSE:CAT), whose shares jumped 11.6% after reporting results that beat expectations.

Fed cuts rates, signals caution ahead

As expected, the Federal Reserve lowered interest rates by 25 basis points to a range of 3.75%–4.00% on Wednesday, marking its third reduction this year. The move came amid limited economic data due to the ongoing federal government shutdown, leaving the policy outlook uncertain.

The decision revealed divisions among policymakers. Fed Governor Stephen Miran, appointed by President Trump, advocated a larger 50-basis-point cut, while Kansas City Fed President Jeffery Schmid voted to keep rates unchanged.

At his press conference, Fed Chair Jerome Powell warned that another rate cut was “far from” certain at the December meeting. Following his remarks, traders trimmed expectations for another cut to 71%, down from 90% earlier.

Powell also confirmed the end of quantitative tightening, saying the Fed would stop reducing its holdings of Treasuries and mortgage-backed securities due to signs of strain in short-term funding markets.

Elsewhere, the Bank of Japan kept its policy settings unchanged but maintained that it would continue raising rates if economic conditions align with its forecasts. The European Central Bank is also expected to hold rates steady, supported by easing inflation and steady growth, even as uncertainty over U.S. trade policy persists.

Trump and Xi hold rare in-person talks

Trade policy was back in focus as Donald Trump and Xi Jinping met in Busan, South Korea, for their first face-to-face meeting in six years. Trump called the conversation “amazing”, adding that the U.S. would lower tariffs on Chinese goods immediately.

In exchange, Beijing agreed to crack down on fentanyl chemical exports and to pause restrictions on rare earth minerals — a key sector for electric vehicles and semiconductors. Trump said China would also begin buying “tremendous amounts” of U.S. *soybeans and other agricultural products “starting immediately.”

The Chinese Commerce Ministry later confirmed that the pause on rare earth controls would last one year and that both sides had reached a consensus on fentanyl cooperation and agriculture trade.

Trump clarified that Nvidia’s Blackwell AI chip was not discussed, despite earlier speculation. He noted instead that the company’s future in China, a $50 billion market, would depend on its own business decisions.

Following the 90-minute meeting, markets were quiet. Analysts at Vital Knowledge commented that “the deliverables don’t really alter the status quo” in U.S.-China trade relations.

Big Tech results dominate investor focus

Earnings from Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOG), and Microsoft (NASDAQ:MSFT) were among the key market drivers overnight, with investors looking ahead to Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) results later in the day.

Meta shares plunged over 7% after-hours after the company said it would “aggressively” ramp up spending on artificial intelligence capable of surpassing human intelligence. The news raised concerns about the scale and returns of its massive AI investments. The company also reported a miss on net income due to a tax charge tied to Trump’s budget bill, even as revenue hit a new record.

Alphabet reported record-high revenue and a 33% surge in net profit to $35 billion, driven by strength in cloud computing and digital advertising. The company’s shares rose 7% after-hours.

Microsoft also benefited from strong demand for cloud and AI services, announcing plans to double its data center capacity within two years. However, it warned that AI spending this year would exceed previous expectations, pushing shares 2% lower after-hours.

The flood of AI-related investments has sparked renewed debate among analysts about a possible tech valuation bubble, reminiscent of the dot-com era.

OpenAI reportedly planning $1 trillion IPO

According to Reuters, OpenAI is preparing for a 2027 initial public offering that could value the company at up to $1 trillion, making it potentially the largest IPO in history.

The company aims to raise at least $60 billion from the listing, with an official filing expected in the second half of 2026. The offering would provide CEO Sam Altman with significant capital to advance his long-term AI ambitions.

Known for its ChatGPT platform, OpenAI is investing hundreds of billions of dollars in AI chips and infrastructure to pursue artificial general intelligence — systems comparable to human cognition. Earlier this week, the company also reached an agreement with Microsoft, its top investor, enabling it to transition to a for-profit structure.

European stocks moved in different directions on Thursday as investors assessed a fresh wave of corporate earnings, easing trade tensions between major economies, regional economic data, and an upcoming policy decision from the European Central Bank (ECB).

By 08:05 GMT, Germany’s DAX was up 0.1%, while France’s CAC 40 fell 0.5%, and the UK’s FTSE 100 also slipped 0.5%.

Trade optimism tempered by caution

Markets reacted to the outcome of a meeting between U.S. President Donald Trump and Chinese President Xi Jinping earlier in South Korea. Trump hailed the discussion as “amazing”, announcing a one-year deal on rare earths and critical minerals and a cut in fentanyl-related tariffs to 10%.

However, the lack of concrete details and Trump’s inconsistent messaging on China led investors to remain cautious about how durable the progress might be.

Central banks in focus: Fed cuts, ECB expected to pause

The U.S. Federal Reserve on Wednesday lowered interest rates by 25 basis points to a range of 3.75%–4.00%, marking its third cut of 2025. Chair Jerome Powell signaled a pause ahead, saying another reduction was “far from a foregone conclusion.”

Attention now shifts to Europe, where the ECB is expected to hold rates steady at 2%, following comments from President Christine Lagarde that the bank was “in a good place.”

Investors are also awaiting German inflation data and eurozone GDP figures, which are likely to confirm sluggish third-quarter growth.

Corporate updates: energy, autos, and banks

Earnings remained in focus, with several major European companies reporting results:

• Shell (LSE:SHEL) posted a Q3 profit of $5.3 billion, up from $3.6 billion in the previous quarter, driven by stronger trading, higher volumes, and favorable tax effects.
• Volkswagen (TG:VOW3) reported a €1.3 billion operating loss, weighed down by U.S. tariffs and restructuring costs at Porsche.
• Société Générale (EU:GLE) beat earnings forecasts thanks to cost savings and steady revenue growth, though it held off announcing a new buyback.
• Stellantis (BIT:STLAM) saw revenues rise 13% year-on-year, ending a seven-quarter decline.
• Puma (TG:PUM) said it will cut 13% of its global workforce (900 jobs) by 2026 amid weak sales.
• Carlsberg (LSE:0AI3) reported slightly weaker Q3 sales but reaffirmed its full-year guidance, citing a challenging consumer environment.

Investors are also monitoring Big Tech earnings in the U.S., with Alphabet, Meta, and Microsoft reporting later in the day.

Oil prices remain under pressure

Crude prices slipped despite improved trade sentiment. Brent crude fell 0.9% to $63.76 per barrel, while WTI dropped 0.9% to $59.93. Both benchmarks are set for monthly losses of over 3%, extending their decline for a third consecutive month.

Attention now turns to the OPEC+ meeting on November 2, where the alliance is expected to confirm a 137,000-barrel-per-day supply increase for December.

Essentra Plc (LSE:ESNT) released a mixed third-quarter trading update on Thursday, reporting solid sales growth that was tempered by margin pressure due to regional performance differences.

The company achieved organic constant-currency sales growth of 5.9% year-over-year in Q3 2025 — a strong rebound from the 1.1% decline recorded in the first half. Order intake rose 5.6% versus the same period last year, with activity in September rebounding to second-quarter levels following seasonally weaker months in July and August.

However, gross margins were described as “slightly weaker” than anticipated, primarily reflecting stronger growth in lower-margin Turkish operations within the EMEA region. This shift in the regional mix is expected to weigh on full-year profitability.

Regional results varied significantly. EMEA returned to year-on-year growth following a soft prior-year comparison, with Turkey standing out due to robust end-market demand, pricing initiatives, and the impact of currency devaluation. By contrast, Western Europe and the UK saw weaker demand in higher-margin markets.

In the Americas, sales maintained low-to-mid-single-digit growth, supported by pricing discipline and stability across distributor channels. Meanwhile, APAC sales declined slightly year-over-year, affected by market softness in China and challenging prior-year comparatives.

Essentra said it remains focused on improving operational efficiency, highlighting progress in manufacturing footprint optimization, selective capital investments, and the continued rollout of its ERP system.

The company reported strong operating and free cash flow generation, reinforcing management’s expectation that full-year leverage will stay within the medium-term target range of 0.5x to 1.5x.

Looking ahead, Essentra expects its full-year 2025 EBITA margin to remain broadly in line with the first-half level of 10.8%, as the dilutive effect of Turkish growth is set to continue into the fourth quarter.

Rémy Cointreau (EU:RCO) SA has lowered its full-year 2026 guidance after reporting a steeper-than-expected decline in second-quarter sales, citing weak market conditions in both the United States and China.

The French premium spirits maker said organic sales fell 11% in the second quarter, missing the company-compiled consensus for a 9.5% decline. Analysts at Morgan Stanley noted that the “magnitude of today’s cuts is significantly larger than expectations” as Rémy Cointreau reduced both its revenue and profit forecasts.

The company now expects full-year organic sales growth to range from flat to low single digits, down from earlier guidance of mid-single-digit growth. It also projects organic EBIT to decline by low double-digit to mid-teen percentages, compared with previous expectations of a mid-single-digit drop. According to Morgan Stanley, the updated guidance “implies mid-teens% cuts to FY26 EBIT at the midpoint.”

Currency effects are expected to further pressure results, with management forecasting a €50–60 million hit to sales and a €25–30 million impact on EBIT, widening from the earlier outlook of €15–20 million. Tariff-related costs were revised down to €25 million from €30 million, including €5 million in China and €20 million in the U.S.

In the company’s core U.S. cognac segment, sales grew by a mid-teens percentage, while depletion volumes fell 3.5% over the past three months — an improvement from the 8.5% decline seen in the prior quarter. Overall inventories in the U.S. market remained stable at “close to 4M” months of supply.

In Mainland China, cognac sales dropped 25%, impacted by “stricter discipline and austerity measures impacting consumer confidence,” according to Morgan Stanley. In Europe, the Middle East, and Africa, sales fell by the mid-teens percentage, pressured by “strong competitive / promotional pressures in most markets and weak demand.”

The company’s liqueurs and spirits division recorded a 5.3% organic sales drop during the quarter, with both the U.S. and EMEA regions declining by mid-single digits — partly due to “adverse phasing after a stronger Q1.” U.S. value depletions for Cointreau and The Botanist were flat in the quarter, while EMEA value depletions showed slight growth in the first half.

For the first half of FY26, net sales totaled €490 million, down 8.3% year-on-year, while EBIT reached €117 million, representing an organic decline of 14.3%. The EBIT margin fell to 23.7%, down 390 basis points from last year. Adjusted net profit came in at €67 million, down 27.2% year-on-year.

Morgan Stanley said the lowered outlook reflects “deteriorating market conditions in China and the weaker-than-expected rebound in US sales,” adding that the foreign exchange outlook has also worsened.

Getlink (EU:GET) shares climbed 2% after the UK’s Office of Rail and Road (ORR) granted Virgin Trains Europe (VTE) access rights to the Temple Mills International Depot (TMI).

The ORR reviewed applications from four companies — Virgin, Evolyn, Gemini, and Trenitalia — alongside a submission from Eurostar, the current operator of the facility. The regulator rejected the other applications, citing insufficient capacity at TMI to accommodate additional operators beyond VTE.

Analysts at Jefferies described the decision as “a positive step towards increased passenger traffic through the tunnel,” noting that Virgin intends to carry around 6 million passengers annually once operations begin in 2030.

The approval represents a major milestone for Virgin Trains Europe as it advances its plans to expand in the European high-speed rail market.