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European Indices Decline Amid Mixed FX Performance

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European Indices Decline Amid Mixed FX Performance

European Trading Session Report | November 21, 2025 | Markets analysis during European hours

Market Commentary

### European Market Commentary: Early Session Insights

As the European trading session gets underway, major indices are extending the downside momentum from a turbulent overnight session in the US, where the S&P 500 closed down 1.56%, the Dow Jones fell 0.84%, and the Nasdaq 100 dropped sharply by 2.38%. Investors appear to be digesting escalating geopolitical tensions, including a US-proposed peace plan for Ukraine-Russia that involves territorial concessions, alongside domestic pressures in the Eurozone and UK. This cautious sentiment is weighing on risk assets, with positioning skewed towards defensive plays amid uncertainty over fiscal policies and central bank actions.

European benchmarks are trading lower in early deals. The Euro Stoxx 50 is declining by 0.76%, led by weakness in technology and financial sectors, as firms grapple with AI-driven efficiencies and restructuring—evident in recent back-office cuts at major legal and banking institutions. The DAX is slipping 0.61%, pressured by export-sensitive industrials amid softening global demand signals. The CAC 40 is edging down 0.30%, buoyed somewhat by resilient consumer staples, while the FTSE 100 is falling 0.50%, reflecting UK-specific headwinds. UK borrowing figures have exceeded forecasts, coupled with plunging retail sales and waning consumer confidence ahead of a potentially austere Budget, which is dampening sterling-linked equities and broader sentiment.

In forex markets, the euro is gaining modest ground against the dollar, with EUR/USD rising 0.05%, supported by the ECB’s release of consolidated banking data for end-June 2025, which shows stable liquidity but highlights vulnerabilities in smaller lenders. The pound is outperforming slightly, as GBP/USD climbs 0.08%, though EUR/GBP is dipping 0.01% on relative UK fiscal woes. The Swiss franc remains a safe-haven amid volatility, with USD/CHF easing 0.01%. Broader dollar weakness, seen in USD/JPY’s 0.34% decline, is aiding European currencies, but investors are positioned defensively ahead of key data.

Political developments are adding to the mix: Brussels’ scrutiny of Italy’s expanded merger veto powers under Meloni could deter cross-border deals, while the Hungarian forint’s drop following a central bank deputy resignation underscores emerging market fragility in the region. The African financing deal for minerals processing offers a bright spot for commodity-linked sectors but does little to offset the gloom.

European Indices Performance

Performance: (Today Last – Yesterday Close) / Yesterday Close × 100

Index Price Daily (%)
Euro Stoxx 50 5527.73 -0.76
DAX 23136.18 -0.61
CAC 40 7957.08 -0.30
FTSE 100 9480.40 -0.50

US Markets (Previous Close)

Performance: (Yesterday – 2 Days Ago) / 2 Days Ago × 100

Index Price Daily (%)
S&P 500 6538.76 -1.56
Dow Jones 45752.26 -0.84
Nasdaq 100 24054.38 -2.38

Currency Pairs Performance

Performance: (Today Last – Today Open) / Today Open × 100

Pair Price Daily (%)
EUR/USD 1.15 +0.05
GBP/USD 1.31 +0.08
USD/JPY 156.85 -0.34
EUR/GBP 0.88 -0.01
USD/CHF 0.81 -0.01
AUD/USD 0.65 0.00
USD/CAD 1.41 -0.03

️ Commodities Performance

Performance: (Close – Previous Close) / Previous Close × 100

Commodity Price Daily (%)
Gold 4036.00 -0.51
Silver 48.78 -2.91
Crude Oil (WTI) 58.18 -1.62
Brent Oil 61.61 -2.79
Natural Gas 4.56 +1.86

Today’s Economic Calendar

High and medium importance events. Times in US Eastern Time (ET).

Date Time Cur Imp Event Actual Forecast
2025-11-21 02:00 Medium Core Retail Sales (MoM) (Oct) -1.0% -0.2%
2025-11-21 02:00 Medium Core Retail Sales (YoY) (Oct) 1.2% 2.5%
2025-11-21 02:00 Medium Retail Sales (MoM) (Oct) -1.1% -0.1%
2025-11-21 02:00 Medium Retail Sales (YoY) (Oct) 0.2% 1.5%
2025-11-21 03:00 Medium ECB’s De Guindos Speaks
2025-11-21 03:15 Medium HCOB France Manufacturing PMI (Nov) 47.8 49.0
2025-11-21 03:15 Medium HCOB France Services PMI (Nov) 50.8 48.4
2025-11-21 03:30 Medium HCOB Germany Manufacturing PMI (Nov) 48.4 49.8
2025-11-21 03:30 Medium HCOB Germany Services PMI (Nov) 52.7 54.0
2025-11-21 03:30 Medium ECB President Lagarde Speaks
2025-11-21 04:00 Medium HCOB Eurozone Manufacturing PMI (Nov) 49.7 50.1
2025-11-21 04:00 Medium HCOB Eurozone Composite PMI (Nov) 52.4 52.5
2025-11-21 04:00 Medium HCOB Eurozone Services PMI (Nov) 53.1 52.8
2025-11-21 04:30 Medium S&P Global Composite PMI (Nov) 51.8
2025-11-21 04:30 Medium S&P Global Manufacturing PMI (Nov) 49.3
2025-11-21 04:30 Medium S&P Global Services PMI (Nov) 51.9
2025-11-21 06:30 Medium ECB’s De Guindos Speaks
2025-11-21 07:30 Medium FOMC Member Williams Speaks
2025-11-21 08:00 Medium Federal Budget Balance (Oct) -223.4B
2025-11-21 08:00 Medium German Buba President Nagel Speaks
2025-11-21 08:30 Medium Fed Vice Chair for Supervision Barr Speaks
2025-11-21 08:30 Medium Core Retail Sales (MoM) (Sep) -0.5%
2025-11-21 08:30 Medium New Housing Price Index (MoM) (Oct) 0.0%
2025-11-21 08:30 Medium Retail Sales (MoM) (Sep) -0.7%
2025-11-21 08:31 Medium Retail Sales (MoM) (Oct)
2025-11-21 09:15 Medium Industrial Production (MoM) (Oct)
2025-11-21 09:15 Medium Industrial Production (YoY) (Sep)
2025-11-21 09:45 High S&P Global Manufacturing PMI (Nov) 52.0
2025-11-21 09:45 Medium S&P Global Composite PMI (Nov) 54.5
2025-11-21 09:45 High S&P Global Services PMI (Nov) 54.6
2025-11-21 10:00 Medium Housing Starts (Sep) 1.320M
2025-11-21 10:00 Medium Housing Starts (MoM) (Sep)
2025-11-21 10:00 Medium Michigan 1-Year Inflation Expectations (Nov) 4.7%
2025-11-21 10:00 Medium Michigan 5-Year Inflation Expectations (Nov) 3.6%
2025-11-21 10:00 Medium Michigan Consumer Expectations (Nov) 49.0
2025-11-21 10:00 Medium Michigan Consumer Sentiment (Nov) 50.3
2025-11-21 10:40 Medium BoE MPC Member Pill Speaks
2025-11-21 12:00 Medium Atlanta Fed GDPNow (Q4) 4.2%
2025-11-21 13:00 Medium U.S. Baker Hughes Oil Rig Count
2025-11-21 13:00 Medium U.S. Baker Hughes Total Rig Count
2025-11-21 15:30 Medium CFTC GBP speculative net positions
2025-11-21 15:30 Medium CFTC Crude Oil speculative net positions
2025-11-21 15:30 Medium CFTC Gold speculative net positions
2025-11-21 15:30 Medium CFTC Nasdaq 100 speculative net positions
2025-11-21 15:30 Medium CFTC S&P 500 speculative net positions
2025-11-21 15:30 Medium CFTC AUD speculative net positions
2025-11-21 15:30 Medium CFTC BRL speculative net positions
2025-11-21 15:30 Medium CFTC JPY speculative net positions
2025-11-21 15:30 Medium CFTC EUR speculative net positions

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