European markets

By&nbspEuronews

Published on
19/11/2025 – 12:14 GMT+1

European stocks showed mixed signals on Wednesday, somewhat easing fears of a global market crash.

At around midday, Germany’s DAX was up less than 1%, while the UK’s FTSE 100 and Spain’s IBEX 35 also saw modest lifts.

Italy’s FTSE MIB dropped less than 1%, as did France’s CAC 40.

Both the STOXX 50 and the wider STOXX 600 showed minimal movement.

Investors kept an eye on data releases on Wednesday, with UK inflation easing to 3.6% in October, down from 3.8% in July, August, and September.

The annual inflation rate in the eurozone, meanwhile, came in at 2.1% in October, a confirmation of a preliminary reading. That’s down from 2.2% in September.

“Investors will breathe a sigh of relief that the market sell-off has lost momentum,” said Russ Mould, investment director at AJ Bell.

“It’s the good news everyone wanted. The key question is whether this is simply the calm before the storm.”

In Asian trading on Wednesday, markets were broadly in the red.

Japan’s Nikkei 225 fell 0.34%, Hong Kong’s Hang Seng was down 0.38%, South Korea’s Kospi slid 0.61%, while Australia’s S&P/ASX 200 slid 0.25%. China’s SSE Composite rose 0.18%.

After a day of losses on Tuesday, Wall Street showed signs of optimism on Wednesday.

Ahead of the opening bell, S&P 500 futures were up 0.30%, while Dow Jones futures increased 0.12%. Nasdaq futures were trading 0.37% higher.

Investors around the world are awaiting third-quarter results from chipmaker Nvidia, set for release later on Wednesday.

Nvidia’s performance matters disproportionately because its immense size means it’s the most influential stock on Wall Street. Its financial report will also influence the narrative around an AI bubble and fears that tech stocks may be overvalued.

“Nvidia reports tonight and the slightest bit of news to disappoint investors has the potential to whip up a tornado across global markets,” said Mould.

“Investors will be hanging on Jensen Huang’s every word and looking for clues that big investment in AI is worth it.”

European shares extended their rally to fresh record highs on Wednesday, buoyed by optimism over a potential resolution to the prolonged US government shutdown and a steady stream of upbeat corporate news.

The region-wide STOXX 600 index rose 0.5% in early trading to an all-time high of 583.4, with major bourses in positive territory.

Investor sentiment was lifted after the US Senate approved a temporary funding bill to end the record 43-day shutdown, with markets betting that the measure will secure full passage in the coming days. There were broad-based gains led by healthcare and luxury stocks, after a positive brokerage note on Novo Nordisk and speculation of a Chinese expansion by Louis Vuitton boosted sentiment across the region.

The euro remains under slight pressure, trading around $1.157 per € at 11.30 CET after a modest retreat. This comes as the US dollar steadies amid improving risk sentiment and hopes that the US government shutdown will soon be resolved. On the commodity front, energy prices are drifting slightly lower as crude oil futures slipped, reflecting calmer concerns about supply disruptions.

On this side of the ocean, yields on UK government bonds, or gilts, rose sharply as investors grew uneasy over the prospect that Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves could face pressure to step down following the Budget. Downing Street said Starmer would resist any leadership challenge.

London’s FTSE 100 edged higher on Wednesday, hovering near the 10,000 mark to trade at fresh record highs, as investors shrugged off volatility in global tech shares.

“UK stocks made progress despite some volatility in the AI space in the US and Asia overnight,” said AJ Bell investment director Russ Mould.

Meanwhile, multinational energy company SSE saw its share price skyrocket by more than 12% after it unveiled an ambitious investment plan. It will nearly double its investment to £33bn (€37.5bn) by 2027 and will be partly financed by a £2bn equity raise with the remainder coming from debt, asset sales and existing cash flow.

Phil Ross, equity research analyst at Quilter Cheviot, said the market had begun to wonder whether SSE might raise capital to fund its strong future growth prospects, and this uncertainty had weighed on the shares in recent months.

“This morning’s announced equity raise puts those doubts to bed as part of the new CEO’s strategy, and leaves a clear pathway to profitable and reliable growth, focusing on the big opportunity in UK power networks,” Ross said, adding: “With the future runway for growth now in place, the company is in a great position to cement itself as one of the UK’s leading energy groups in the UK.”

UK-based BAE Systems reported strong performance for its financial year. The company said robust demand supported BAE’s expectations for further profit growth.

The defence giant has secured more than £27bn (€30.6bn) in orders so far this year, with additional deals expected before year-end.

The company reaffirmed its recently upgraded full-year guidance, forecasting sales growth of 8–10% and underlying operating profit growth of 9–11%. BAE plans to return about £1.5bn (€1.7bn) to shareholders through dividends and share buybacks in 2025. Shares were little changed in early trading.

One of the key developments shaping international market sentiment on Tuesday was SoftBank’s decision to sell its entire stake in Nvidia, worth $5.83 bn (€5bn). This move resulted in a 10% dive of the Japanese technology company’s share prices on Wednesday in the Asian trade, as equity markets reacted unfavourably to the surprise announcement.

“Corrections are a healthy and necessary fact of life in financial markets, but investors will be wary of any signs this is turning into a pronounced sell-off,” according to Mould, who added that attention is now turning to Nvidia’s third-quarter earnings update on 19 November.

Mould also highlighted that once the US government shutdown is resolved, investors will focus on a wave of upcoming US economic data, including third-quarter GDP.

In more corporate news, the world’s largest electronics maker, Foxconn, posted anticipation-exceeding results showing a jump in its third-quarter profit of 17% from a year earlier, fuelled by growth in its artificial intelligence server business.

The company said it was “optimistic” about the performance of AI and smart consumer electronics in the fourth quarter, which are expected to show significant growth momentum.

European stocks rallied at the start of the new trading week as a late test vote in the Senate on Sunday raised expectations for a bipartisan deal to fund the government, lifting investor sentiment across regions.

US stock futures climbed, and European indices followed suit.

Germany’s DAX rose 1.5%, France’s CAC 40 gained 1.4% and London’s FTSE 100 advanced 0.8% at around 11:00 CET. The uptick reflected renewed optimism that the shutdown, which has hindered access to key economic data, could soon end, alleviating uncertainty for markets.

AJ Bell investment director Russ Mould said the Senate vote was an important first step, but that there were still hurdles to be cleared.

“A key impact on the markets of the impasse, beyond the hit to the wider economy, has been the lack of data as key releases on areas like the jobs market have been delayed,” Mould said.

He added that this “created a considerable dose of the uncertainty which markets famously hate, and it is also hampering the ability of the Federal Reserve to make informed decisions on interest rates.”

“In this context, it’s not a surprise to see investors react positively to signs of progress, with Asian shares higher, indices on the front foot in Europe and US futures pointing towards gains when Wall Street opens later.”

A respite for whiskey and spirits

Meanwhile, shares in beleaguered drinks giant Diageo soared 6.4% in early trade on news that former Tesco chief executive Dave Lewis was appointed to lead the company.

Diageo is one of the world’s biggest drinks groups and a heavyweight in the FTSE 100, with a stable of blue-chip brands such as Johnnie Walker, Guinness, Smirnoff, Tanqueray, Don Julio and Baileys sold in more than 180 countries

The company has struggled with falling drink consumption after the end of the COVID-19 pandemic, and an end to the government shutdown is positive for Diageo as the United States is its single largest market

Lewis, who is set to take over in January 2026, was known as “Drastic Dave” for his role in turning around the supermarket chain.

Dan Coatsworth, head of markets at AJ Bell, said the appointment was a “significant hire and a pleasant surprise”.

He explained that investors “are clearly excited about Diageo’s prospects under Lewis. The stock is unloved after several years of disappointment, and the appointment of a highly respected CEO could be enough to win over many investors.” However, Lewis knows he will ultimately be judged on results, not hope.

A boost for dollar exchanges and gold

In terms of currencies, the dollar exchange rate remains steady, with the current euro exchange rate hovering at around $1.15, while the yen exchange rate went up slightly to $154.1 or by 0.5%.

The UK pound is slightly weaker against the dollar, going down by 0.1% to $1.315.

Gold is up about 1.8% at roughly €3,521 per troy ounce (about €113 per gram and €113,200 per kilogram). It is still sought out as a safe place to park money, even as shutdown worries ease.

AI and tech leaders are firmer in pre-market trading alongside the broader risk-on tone, and reports show Nvidia up by around 3.5%.

The move sits within a wider global relief rally as investors price a potential end to the shutdown.

In other developments, shares of Danish pharmaceutical giant Novo Nordisk rose by 2.3% by midday in Europe after the company announced a partnership with Indian drugmaker Emcure Pharmaceuticals to market its weight-loss treatment Wegovy under a new brand through an exclusive agreement.

Meanwhile, the company failed in its bid to acquire biotech firm Metsera. The biotech company based in New York, which develops promising drugs against obesity, said it would accept a revised offer from Pfizer of up to $10 billion (€8.65bn).