Global stock markets are once again moving in different directions on Wednesday, buoyed by hopes of a thaw in relations between Washington and Beijing, but held back by caution ahead of the US Federal Reserve’s decision.
In Europe, the session opened on a hesitant note. The CAC 40 lost slightly to 8,200 points, driven by caution ahead of Jerome Powell‘s big speech and the quarterly results of Microsoft, Alphabet, and Meta, expected in the evening.
In Frankfurt, the Dax rose 0.13%, while in London, the FTSE 100 gained 0.38%. In Milan, the Ftse Mib remained virtually stable at +0.08%.
A breath of optimism from Asia
Financial markets welcomed the confirmation of a meeting between US President Donald Trump and his Chinese counterpart Xi Jinping, scheduled for Thursday in the South Korean city of Busan. Beijing said the face-to-face meeting would “inject new momentum into the development of Sino-US relations,” while affirming its desire to achieve “positive results.”
Donald Trump, for his part, said he expected an “important agreement” to be reached on tariffs and trade cooperation, after months of tension over exports of rare earths and chemicals linked to fentanyl.
This diplomatic optimism boosted the dollar, which rose 0.2% against a basket of reference currencies, reaching 98.9 points after several sessions of decline. The euro fell slightly to $1.1631, while the pound sterling traded at $1.3238.
Oil was also boosted by the prospect of closer trade ties between the world’s two largest economies, which is likely to stimulate energy demand : at the opening this morning, Brent crude gained 22 cents, or 0.34%, to $64.62 per barrel, while West Texas Intermediate (WTI) rose 20 cents to $60.35.
The game of sanctions against Russia
While the geopolitical news may bring relief between China and the United States, the same cannot be said between the US and Russia. At the end of last week, Washington announced sanctions against two of the largest oil companies that “fuel the Kremlin’s war machine,” following Vladimir Putin’s renewed refusal to end the conflict with Ukraine.
Rosneft and Lukoil, which together account for nearly half of Russia’s crude exports, were targeted. Washington finally announced that the German subsidiary of the Russian group Rosneft would not be affected by the latest sanctions related to the Ukrainian conflict, as Berlin had assured that these assets were no longer under Russian control.
At the same time, several Indian refiners have suspended new orders for Russian oil pending clarification of the terms of the US sanctions. Some are turning to the spot market for supplies, while the state-owned Indian Oil Corporation has confirmed that it will continue to purchase as long as it complies with international rules.
For its part, the Kremlin has downplayed the impact of Western measures, saying that Russia will continue to offer “high-quality and affordable” energy, leaving it up to its partners to decide whether or not to continue their purchases.
Luxury keeps a low profile
In the luxury segment, Moncler posted the biggest decline in the sector at midday, with its share price falling 4.01%. This follows the publication of its third-quarter 2025 results, which showed a slight decline in revenue : sales stood at around €615.6 million, down approximately 1% at constant exchange rates compared to the previous year.
Despite this, UBS believes that the brand’s third quarter does not provide any decisive factors that would change market perception and has slightly raised its target price to €57 (from €52.5).
On the spirits side, Pernod Ricard successfully announced a €1.2 billion bond issue in euros, divided between two long tranches (7 years and 11 years) and supplemented by a €200 million private placement with a 2-year maturity. In the eyes of the markets, this operation appears to be a move to strengthen the company’s financial position in a context of inflation and high costs, giving Pernod Ricard greater room for maneuver. Despite this, at midday, the share price was down 0.71%.
Other stocks did not surge on the stock market on Wednesday afternoon : LVMH saw a slight increase of 0.18%, Kering fell by 1.11%, Hermès dropped by 0.59% and L’Oréal fell by 0.38%.
Read also > [STOCK MARKET UPDATE] Luxury goods drag down the CAC 40 as global markets take a cautious stance
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