MARKET WRAPS
European shares were up ahead of key rate decisions from the European Central Bank and the Bank of England due today.
The ECB is expected to keep rates on hold later Thursday, and the conservative interpretation of the ECB's symmetric inflation target will continue to limit the impact of rate cuts, Natixis IM Solutions said.
Meanwhile, markets expect the BOE to cut interest rates to 3.75% and expect another 25 basis-point rate cut by mid-2026, according to LSEG data.
U.K. inflation data released this week was weaker-than-expected, increasing prospects of lower interest rates. Focus will likely center on how close the vote is.
ING said the consensus forecast is for a 5-4 BOE vote in favor of a cut, but there's a risk of a 6-3 split.
The English central bank is likely to cut interest rates possibly four more times in 2026 , according to analysts at the Investment Institute by UniCredit.
Elsewhere, the Swedish central bank held its key policy rate . So too did Norway's central bank .
Investors are also waiting for the release of U.S. inflation data for November due at 1330 GMT. It will be the first reading since the record-long government shutdown ended last month.
U.S. weekly jobless claims data at 1330 GMT will also be closely monitored.
Shares on the Move
European oil and gas stocks rose in opening trade as oil continued to benefit from heightening tensions between the U.S. and Venezuela.
U.S. Markets:
Stock futures were up ahead of key data including the inflation figures for November and weekly jobless claims.
The release of economic data could drive the Federal Reserve's stance on monetary policy, ANZ Research said .
Forex:
The euro was steady as investors waited for central bank decisions.
Sterling fell. ING said the currency has limited scope to fall if the BOE cuts rates.
The dollar traded steady ahead of U.S. inflation data.
Bonds:
Two-year gilt yields fell while ten-year yields were steady as investors expect the BOE to cut its key rate.
Treasury yields edged lower, with CPI data unlikely to be a game changer, according to Pepperstone.
Ten-year Treasury yields were expected to trade in a range of 4.0%-4.5% in 2026, possibly hitting the top end in the second half of the year, iCapital said.
Energy:
Oil prices rose for a second straight session, supported by supply risks in Venezuela and Russia even as the broader outlook remained bearish.
That said, a lingering surplus means oil prices were set to continue facing pressure next year , according to Julius Baer. It added that supply risks stemming from the U.S. ramping up pressure on Venezuela were unlikely to be material.
Metals:
Gold prices slipped but remained near October's record, with investors focusing on rising geopolitical tensions in Venezuela and waiting for U.S. inflation data.
The yellow metal was increasingly becoming a cornerstone asset in a world defined by fragmentation, fiscal strain and geopolitical uncertainty, Saxo Bank said.
Despite the strong momentum, gold was not without risks heading into next year, it added, noting that in the very near term, the most tangible risk comes from positioning and flows.
Copper
Copper prices fell and further interest-rate cuts would be a tailwind for the sector.
"Copper demand has been relatively strong, with China's imports elevated, " ANZ Research said.
Iron
Iron ore prices rose as global iron ore shipments have increased steadily this month, Galaxy Futures said.
EMEA HEADLINES
BP Turns to Outsider as Next CEO
BP said Chief Executive Murray Auchincloss is stepping down after less than two years at the helm of the oil major and named an outsider as his successor.
The London-based company is turning to Meg O'Neill, who is resigning from her role leading Woodside Energy, as its next CEO. She will take the position April 1. With O'Neill's appointment, BP is breaking with its longstanding tradition to promote CEOs from within its own ranks.
BNP Paribas's Vehicle-Leasing Business in Talks to Buy Mercedes-Benz Leasing Unit
BNP Paribas's vehicle-leasing business is in exclusive talks with Mercedes-Benz to acquire the German automaker's vehicle-leasing and fleet management subsidiary.
A deal would see Arval's current fleet of 1.9 million vehicles under full-service leasing combine with Mercedes-Benz unit Athlon to create an enlarged business with around 2.3 million vehicles. It would expand Arval's presence in key markets and boost its competitive position in Europe.
Alstom Alliance Wins $5.75 Billion Contract in Australia
French train maker Alstom said it won a 4.9 billion-euro ($5.75 billion) contract for Australia's Suburban Rail Loop as part of an alliance that includes other partners.
The company said Thursday that the contract was awarded by the Suburban Rail Loop Authority in Melbourne to the TransitLinX Alliance, which consists of Alstom, John Holland, KBR, WSP and RATP Dev. Alstom's share of the contract work is valued at 1 billion euros, it said.
Rheinmetall to Sell Civil Division, Refocus on Military Business
Rheinmetall is selling its civil business division as it looks to focus on its military business.
The German arms and automotives maker said Wednesday that it was choosing between two bidders after launching talks with potential buyers in April. It says it hopes to sign an agreement in the first quarter of 2026.
All That Cheap Chinese Stuff Is Now Europe's Problem
LONDON-President Trump's crackdown on Chinese imports in the U.S. has redirected a tsunami of cheap stuff into Europe. Some of it is pooled in Xue Er's backyard.
A stay-at-home mom in her 40s who moved from Shanghai to the U.K. in 2021, Xue recently built a 320-square-foot shed to store clothes, bags and small furniture from Chinese merchants, many of whom are eager to broaden beyond the American market. When orders come in she packs and ships the products, cutting the turnaround time. In a good month she earns GBP3,000 to GBP5,000.
GLOBAL NEWS
AI-Themed Stocks Take More Hits, Sending Nasdaq Lower
Tech stocks slid on Wednesday, continuing to drag down major indexes, as investors worried about the future of AI-themed stocks.
The Nasdaq Composite Index dropped 1.8%, while the S&P 500 slipped 1.2%, the biggest falls for each benchmark in nearly a month. Tech giants Google-parent Alphabet, Nvidia and Tesla all fell more than 3%, leading the Magnificent Seven growth stocks lower, while the Dow industrials fell 0.5%, dragged lower by a fall in Caterpillar shares.
Trump Says U.S. Poised For Economic Boom. The Numbers Tell a Different Story.
President Donald Trump addressed the nation on Wednesday night, extolling his economic record to date and promising a bright economic future for the U.S. in the year ahead. But the economic data don't paint a rosy picture.
"We are making America great again tonight," Trump said in a roughly 20-minute address. "Our border is secure. Inflation has stopped. Wages are up. Prices are down. Our nation is strong. America is respected, and our country is back stronger than ever before. We're poised for an economic boom the likes of which the world has never seen."
The $8 Billion Black Market for Venezuelan Oil Is Suddenly Closing Down
Venezuela has long used the same playbook as Russia and Iran to get around crippling American sanctions on its oil industry, tapping a shadowy fleet of aging vessels to carry crude to customers.
President Trump's partial oil blockade threatens to devastate this black market, which U.S. officials say lines Venezuelan leader Nicolás Maduro's pockets and props up the impoverished country's fragile economy.
U.S. inflation was rising before the shutdown. Tardy CPI to show if prices have gotten worse.
The U.S. jobs market isn't so hot, investors learned this week, but inflation is hotter than anyone would like. Just how much? We'll find out Thursday.
The consumer-price index for November will give Wall Street and the Federal Reserve a glimpse into the latest trends in inflation toward the end of the year.
U.S. Accepts Fault for Reagan Airport Collision That Killed 67 People
The U.S. government accepted fault for a midair collision earlier this year that killed 67 people near Washington, D.C., saying it is willing to pay damages to the families in connection with the incident.
The Justice Department's filing in federal court Wednesday was in response to a lawsuit filed by Rachel Crafton, the wife of one of the deceased passengers. The September lawsuit accused the Federal Aviation Administration, the Army, American Airlines and its subsidiary PSA Airlines of "systemic failures" that contributed to the crash at Ronald Reagan Washington National Airport.
Trump Defends Handling of Economy, Announces Military Dividend
WASHINGTON-President Trump on Wednesday defended his handling of the economy during a rare prime-time speech and announced a $1,776 "warrior dividend" check for active-duty servicemembers that he said would be paid for with tariff revenue.
"Military servicemembers will receive a special, we call warrior dividend before Christmas, a warrior dividend in honor of our nation's founding in 1776," Trump said, speaking from the Diplomatic Room of the White House, which was decorated for the holidays. "Nobody deserves it more than our military."
Islamic State's Caliphate Is Gone. Its Influence Lives On.
More than six years after Islamic State's caliphate collapsed in the Middle East, the group's brand of extreme violence lives on, inspiring lone-wolf attacks such as the one on Sydney's Bondi Beach.
The group, which once imposed harsh Islamist rule in parts of the Levant and relied on fighters it trained there, now recruits and radicalizes operatives it finds online, many of whom have seized on the war in Gaza to justify violent acts against Jews.
Frustrated GOP Centrists Back ACA Vote, Siding With House Democrats
WASHINGTON-Four vulnerable House Republicans rebelled against Speaker Mike Johnson (R., La.) and backed a Democratic effort to force a vote on extending Affordable Care Act subsidies, exposing GOP fractures over surging healthcare costs headed into next year's midterm elections.
Rep. Mike Lawler (R., N.Y.) joined three Republicans from Pennsylvania swing districts-Reps. Brian Fitzpatrick, Rob Bresnahan and Ryan Mackenzie-in signing a petition led by House Minority Leader Hakeem Jeffries (D., N.Y.) that would force a vote on a three-year extension of enhanced ACA subsidies. The lawmakers acted after the GOP leaders blocked votes on compromise measures aimed at extending and trimming the subsidies, saying the needs of their voters were urgent.
Putin Warns He Will Achieve Aims in Ukraine Through Negotiation or War
Russian President Vladimir Putin warned that Moscow would achieve its goals in Ukraine either through diplomacy or on the battlefield, days after U.S. and European officials met with Ukraine's leadership to try to hammer out a deal to end nearly four years of war.
Speaking to Defense Ministry officials, Putin lashed out against the previous Biden administration's stance toward Russia and called European leaders backing Ukraine "piglets" who wanted to feast on the collapse of Russia.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
December 18, 2025 05:03 ET (10:03 GMT)
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