European markets close quiet as traders eye US jobs data

investingLive European news wrap: Markets consolidate ahead of the US NFP report

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Markets:

• WTI crude oil up +0.43% to $90.92
• Gold down -0.54% to $4,064
• USD leads, NZD lags
• S&P 500 up +0.29% to 7405
• US 10y Treasury yield up 2 bps to 4.86%
• Bitcoin up 0.14% to $76,072

The session has been fairly subdued, with few news events or economic releases. The main data point was the Eurozone retail sales figures for September. They dropped by -0.7% month-on-month, well below the -0.1% estimate, while the annual pace eased to 0.4% from 0.8%. Non-food products were the main driver of the decline, though food, drinks and tobacco also softened. Germany posted the biggest monthly fall, at 2.0%.

The figures indicate that consumer demand is weakening under the weight of high energy costs and elevated interest rates. Still, the data does not alter the ECB's policy stance, as the central bank keeps its focus on inflation.

Fed official Williams described the US economy as remarkably resilient, with robust growth and a steady labour market. According to him, tariff-linked inflation pressures have mostly passed through, energy costs are behaving as expected, and longer-term inflation expectations remain well anchored, with wage growth aligning with the Fed’s 2% target. Williams appears at ease with the current conditions and sees no rush to change interest rates, preferring a wait-and-see stance as the Fed monitors incoming data.

The Deputy Head of Iran's top security body told state TV that the country remains doubtful about US diplomatic promises, saying written guarantees are insufficient and that Washington needs to take concrete actions before talks can restart. Tehran is seeking tangible evidence of US intentions rather than relying on pledges. It seems Iran is trying to leverage the US midterm results and wants the US to accept all its conditions. There is a chance this could push Trump to authorise fresh military action now that he has little to lose.