investingLive European news wrap: Markets consolidate ahead of the US NFP report

Articles:

Markets:

  • WTI crude oil up +0.43% to $90.92
  • Gold down -0.54% to $4,064
  • USD leads, NZD lags
  • S&P 500 up +0.29% to 7405
  • US 10y Treasury yield up 2 bps to 4.86%
  • Bitcoin up 0.14% to $76,072

It’s been a relatively quiet session, with limited news and data releases. In terms of data, the only highlight was the Eurozone retail sales report. Retail sales fell by -0.7% m/m in September, missing the -0.1% forecast, while annual growth slowed to 0.4% from 0.8%. The decline was mainly driven by non-food products, although food, drinks and tobacco sales also weakened. Germany recorded the largest monthly drop, with sales falling 2.0%.

The data points to weakening consumer demand amid elevated energy prices and higher interest rates. However, the data doesn’t change the ECB’s policy outlook, as the central bank remains primarily focused on inflation.

Fed’s Williams described the US economy as remarkably resilient, with stronger growth and a stable labour market. He noted that tariff-related inflation pressures have largely passed through, energy costs are evolving as expected, and longer-term inflation expectations remain anchored, with wage growth consistent with the Fed’s 2% target. Williams seems comfortable with the current economic backdrop and sees no urgency to adjust interest rates, favouring a wait-and-see approach as the Fed assesses incoming data.

The Deputy Head of Iran’s top security body told state TV that it remains sceptical of US diplomatic commitments, insisting that written assurances are not enough and that Washington must take concrete steps before negotiations can resume. Iran is demanding practical evidence of US intentions rather than relying on promises. It looks like Iran is trying to capitalise on the US midterms results and wants the US to agree on all its terms. There’s a risk that it could force Trump to order renewed military operations now that he has nothing to lose.

This article was written by Giuseppe Dellamotta at investinglive.com.

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