The euro remained below the $1.11 level, hovering near its weakest point since March 2025, as the US dollar drew support from growing expectations of further Federal Reserve tightening. Persistent political and fiscal uncertainty in France, concerns over the region's weakening growth outlook and speculation surrounding the next ECB president also weighed on the single currency. Stronger-than-expected US consumer price data released on Tuesday reinforced expectations of another Fed rate hike in December, while raising the possibility of a more aggressive 50-basis-point increase. In Europe, analysts expect the European Central Bank to deliver one final deposit rate hike in the current tightening cycle next month. However, more than a third anticipate an additional increase in early 2027, as inflation remains around twice the ECB's 2% target. Markets are even more hawkish, currently pricing in three rate hikes by the end of next year.

The number of employed persons in the Euro Area was broadly unchanged from the previous quarter at 176.547 million in the third quarter of 2026, compared to the 0.1% increase in the earlier period, according to a preliminary estimate. If confirmed, the Euro Area would halt 21 consecutive quarters of employment growth, as high energy prices and sluggish productivity led economic headwinds in the period.

Eurozone GDP expanded by 1.3% year-on-year in the third quarter of 2026, the fastest pace in over a year, following 1.2% growth in the second quarter, matching the preliminary estimate. Growth accelerated in Germany (1.2% vs. 1%), Spain (2.7% vs. 2.6%), the Netherlands (2.1% vs. 1.6%), Finland (1.8% vs. 1.4%), and Estonia (2.2% vs. 1.8%). Ireland also returned to growth, expanding by 3.6% after contracting 0.4% in the previous quarter. In contrast, France

The Eurozone economy grew by 0.4% in Q3 2026, slowing from a 0.6% expansion in Q2. Ireland led the region with a strong 5.5% expansion, driven largely by robust AI-related investment, while Spain and the Netherlands both recorded growth of 0.6%, supported by resilient consumer spending. Germany's economy expanded by just 0.2%, as weaker exports and declining investment offset solid consumption, while France contracted by 0.1% and Italy stagnated. Despite the slowdown, the Eurozone has remained relatively resilient this year, supported by substantial investment in AI, defense and infrastructure, prompting forecasters to raise their 2026 growth projections to above 1%, with further acceleration expected in 2027. However, the outlook remains subject to significant downside risks. The ECB and other observers have warned that economic momentum could weaken as rising borrowing costs, renewed energy price pressures and the prospect of further interest rate hikes weigh on economic activity.

The Euro Area recorded a

New yuan loans extended by Chinese banks fell by a net CNY 100 billion in October 2026, the first-ever contraction recorded for the month, swinging from a positive CNY 220 billion last year and missing median expectations of a net extension of CNY 20 billion. The result maintained the current trend of sharp contractions in bank credit to Chinese households and businesses amid a slowing economy and weak consumer demand, particularly for housing. In turn, total social financing, a broader measure of net credit, jumped to CNY 1.15 trillion from CNY 810 billion in the previous year, although the figure fell short of expectations of CNY 1.45 trillion. This underscored the ongoing shift away from traditional sectors of the economy toward tech, which commonly raises cash in the bond and equity markets instead of through bank loans.

China

Top currency losers are Turkish Lira (-0.59%) and Indian Rupee (-0.37%). Meanwhile, Euro, Japanese Yen and Dollar Index were little changed.

Germany

Frankfurt's DAX 40 edged down 0.3% to trade below 26,700 on Friday, as profit booking emerged after a four-day rally that sent the index to record highs. Meanwhile, market sentiment remained cautious amid rising oil prices and bond yields, which fuelled inflation concerns and expectations of tighter monetary policy, offsetting optimism over strong corporate earnings. Attention also remained focused on Nvidia, as investors assessed the potential implications of CEO Jensen Huang's reported resignation for the broader technology sector. Siemens (-2.2%) led losses among stocks, followed by Infineon Technologies (-1.8%) and MTU Aero Engines (-1.7%). Mercedes-Benz Group was slighlty lower after announcing on Thursday that it would halt all new investment at its German facilities for the time being, while also considering potential plant closures. On the upside, E.ON (1.4%), Symrise (1.2%), Brenntag (1.1%), Hannover Re (1%) and Munchener Re (1%) advanced the most.

US producer prices are expected to rise 0.4% month-over-month in October 2026, easing from a sharp 1.3% increase in September, which marked the steepest monthly gain since March 2022, following the outbreak of the war in Ukraine, and the second-largest increase on record. The anticipated slowdown would signal a moderation in producer-level inflation, largely reflecting easing energy price pressures. Core PPI, which excludes food and energy, is forecast to increase 0.3% month-over-month, down from 0.7% in September. On an annual basis, however, headline producer inflation is expected to accelerate to 6.6%, its highest level since November 2022, while core PPI inflation is projected to remain unchanged at 5%, its highest reading since early 2023.

The FTSE 100 traded flat to lower on Friday, weighed down by losses in mining and defence stocks. Antofagasta and Anglo American fell more than 1.5%, while Glencore declined about 1% and Rio Tinto was down 0.6%. Gold producers Fresnillo and Endeavour also lost more than 1%, as gold and silver hovered near one-year lows and copper prices slipped to four-month lows. Defence and aerospace stocks weakened, with Rolls-Royce down nearly 2%, while BAE Systems and Babcock each fell over 1%. In contrast, oil majors Shell and BP gained more than 1%, supported by a rebound in crude prices amid renewed uncertainty over US-Iran relations following President Donald Trump's comments that Washington could forgo a deal with Tehran. Aviva shares rose 2% after the insurer reaffirmed its three-year targets and reported stronger inflows into its wealth business. Despite Friday's subdued performance, the FTSE 100 remained up more than 1.5% for the week.

European equity markets traded lower Friday, as rising oil prices and bond yields fueled inflation concerns and heightened fears of further interest rate hikes, while continued resilience in corporate earnings helped limit losses. The STOXX 50 fell 0.4% to 6,380 points, while the STOXX 600 slipped 0.3%, although both remained on track for solid weekly gains. Investors also continued to assess the latest developments surrounding Nvidia and the broader semiconductor sector, following reports of CEO Jensen Huang's resignation, while a fresh batch of corporate earnings provided additional market direction. Richemont tumbled 7% despite reporting strong quarterly sales, as higher gold prices weighed on margins. Generali dropped 2% after Goldman Sachs downgraded European insurers to "underweight", although the company reported higher nine-month results. For the week, the STOXX 50 was set to gain 3.3%, while the STOXX 600 was heading for a 2% advance, having reached a record high on Thursday.

Top commodity gainers are Rice (1.80%), Wheat (1.74%) and Wool (1.41%).

Top commodity gainers are Lithium Carbonate (1.88%) and Gold (0.60%). Biggest loser is Copper (-0.98%).

Top commodity gainers are Natural Gas EU (2.99%) and Natural Gas UK (2.70%). Biggest losers are Natural gas (-1.69%) and Crude Oil (-0.25%). Meanwhile Brent Oil was little changed.

Nickel traded around $16,100 per tonne, retreating from a recent over one-month high as persistent global oversupply and subdued downstream demand continued to weigh on prices. The International Nickel Study Group (INSG) projects a surplus of 19,000 tonnes in 2026, reversing its previous deficit forecast, with the excess expected to widen to 70,000 tonnes in 2027 as production outpaces consumption. Philippine nickel ore exports also continued to rise, with Nickel Asia's shipments helping Indonesian smelters offset tighter domestic ore availability. Additionally, demand for nickel sulphate is expected to weaken toward year-end, with limited spot purchases from precursor manufacturers as existing long-term contracts cover much of their raw material needs. Meanwhile, Indonesia's plans to further tighten nickel ore production quotas in 2027 could curb supply growth, following recent indications that allocations may be more aggressive than this year's cuts.

Switzerland

Coal prices climbed to around $145 per ton, recovering from two-month lows as broader energy markets strengthened amid persistent geopolitical tensions in the Middle East. President Donald Trump stated that the US no longer need a deal with Iran and directed Vice President JD Vance to prioritize domestic matters over negotiations with Tehran. Meanwhile, Iran continues to insist that Washington must lift its naval blockade and remove sanctions against the country before agreeing to direct peace talks. Coal prices had previously surged to multi-year highs as elevated LNG prices, driven by the Middle East conflict, encouraged increased reliance on coal-fired power generation. Separately, the International Energy Agency projected in September that global coal consumption would reach a record level this year, despite ongoing efforts to shift toward cleaner energy sources and the continued closure of numerous coal-fired power plants across Europe and North America.

Japan

Germany

Wheat climbed over 1% to around $5.90 per bushel, rebounding from a more than four-month low hit on November 12, as uncertainty lingered over Russia-Ukraine peace talks. Ukrainian President Volodymyr Zelenskyy welcomed European involvement in upcoming peace talks with Russia, signaling hope for progress toward a ceasefire and de-escalation. However, Putin warned Europe against deploying peacekeeping troops under any deal while refusing to soften his territorial demands and pressing the US to clarify whether its European allies seek peace or war. The latest developments underscore deep divisions clouding the outlook for a settlement. However, gains in wheat were partly capped by Argentina

Iron ore futures declined to around CNY 670 per ton, approaching their lowest levels since October 2022 as rising supply and weakening demand continued to weigh on the market. Industry data showed that iron ore inventories at major Chinese ports increased for another week, with Brazilian shipments contributing to the buildup for a fourth consecutive week. Demand prospects were further dampened by anticipated production restrictions across key steelmaking hubs in China's Hebei province. Major steel-producing cities, including Tangshan and Handan, have entered the autumn-winter air pollution control period, during which unfavorable weather conditions have periodically disrupted sintering operations and blast furnace utilization. Meanwhile, industry figures indicated that average hot metal output among Chinese steelmakers, a key gauge of iron ore demand, continued to decline, adding further pressure to prices.

European equity markets were poised to open lower on Friday as this week

The NZX 50 shed 86 points, or 0.6%, to close at 14,174 on Friday, as traders took profits after the index hit a record high a day earlier, supported by strong earnings reports from heavyweight stocks. Rising oil prices pressured the index, as inflation concerns and expectations of interest rate hikes increased. Fresh data also weighed on sentiment, as New Zealand's manufacturing growth eased in October amid rising fuel prices, the cost of living, and election uncertainty. Caution also built ahead of the release of a slew of economic data from China, including industrial output, as well as next week's PBOC interest rate decision, FOMC minutes, and New Zealand's trade data. Almost all sectors traded in the red, led by utilities, with notable losers including AFT Pharmaceuticals (-3.2%), Fletcher Building (-2.4%), Meridian Energy (-2.1%), Delegat Group (-1.4%), and Contact Energy (-1.2%). However, the index rose 1.3% for the week, marking its third straight weekly gain.