EMEA Morning Briefing : U.S.-Iran Talks in Focus

MARKET WRAPS

Watch For:

Eurozone balance of payments, flash consumer confidence indicator; trading updates for Rio Tinto, Nestle, Airbus, Zurich Insurance Group, Klarna, Pernod Ricard, Renault, Repsol among others.

Opening Call:

European stock futures were mixed after Asia stocks broadly rose U.S. Treasurys were higher, the dollar strengthened, gold fell and oil rose.

Equities:

European stock futures were mixed as markets kept a close eye on the talks between the U.S. and Iran. Traders kept a close eye on oil prices after the U.S. said it was keeping all military options with Iran on the table.

Overnight on Wall Street, investors made a return to tech stocks, whose brutal start to 2026 turned some of the priciest companies into unexpected bargains.

As the market's rally stretched beyond a third year of gains, investors began to grow concerned that some stocks, and especially technology shares, were now trading at sky-high prices. They started to shift into financials and consumer products-sectors that seemed less likely to be disrupted by artificial intelligence.

For the first time in weeks, investors are thinking they might have overdone it.

"Investors may look at that and say I'll actually build a little bit more growth into my portfolio or a little bit more technology into my portfolio," said Jason Pride, chief of investment strategy and research at Glenmede.

Forex:

The U.S. dollar was strengthened, with fading prospects of Fed rate cuts ahead.

The minutes of the FOMC's January meeting revealed a more hawkish tone, NAB's Gavin Friend said in commentary.

The minutes showed "several policymakers indicated they would have supported a two-sided description of the FOMC's future rate decisions, reflecting the possibility that upward adjustments to the target range could be appropriate if inflation remains above target levels," the senior markets strategist added.

Bonds:

U.S. Treasury yields rose amid signs of declining demand for U.S. debt while Fed minutes show no rush to cut interest rates.

The Treasury sold nearly $16 billion in 20-year bonds. The participation of indirect bidders, which includes foreign central banks, fell to 55.2% from 64.7% in January.

The bid-to-cover ratio slipped to 2.36 from 2.86, indicating wobbling demand. Weekly jobless claims in the U.S. are expected to decline to 223,000 from 227,000, according to a WSJ survey. U.S. December trade deficit is forecast to narrow to $55.5 billion from November's $56.8 billion.

Energy:

Oil prices hitting $70 a barrel could signal a "breakout on fear" relating to a potential looming U.S. military action, said Phil Flynn, senior market analyst at the Price Futures Group.

U.S. oil prices have been largely stuck in the same low- to mid-$60s price range for the past year, but they did surge briefly to about $74 a barrel in June after the U.S. and Israel launched strikes against Iran's nuclear program.

Prices briefly topped $65 a barrel in late January after President Donald Trump said a "massive armada" was heading to the Middle East to help coax Iran into reaching a nuclear deal.

Vance said the U.S. would very much like "to resolve this though a conversation and a diplomatic negotiation, but the president has all options on the table."

Metals:

Gold prices were lower after overnight gains on growing risks of a U.S.-Iran conflict that could enhance the safe-haven allure of the precious metal.

There has been a renewed flare-up in worries over a potential U.S.-Iran war, InTouch Capital Markets' analysts team said in commentary.

The team cites a media report that the Trump administration could be closer to a conflict with Iran as prospects for a deal are looking remote and that a joint operation with Israel would be most likely.

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World uranium production has been lower than demand for several decades, and utilities are making up the difference mostly by drawing on stockpiles.

"Nuclear demand is rising and there needs to be, ultimately, more uranium purchased," said Jacob White, ETF products director at global asset management firm Sprott, which runs the world's biggest physical uranium trust.

The U.S. has the world's largest fleet of nuclear reactors, followed by China and France, and China is leading the way in new plants under construction, according to the World Nuclear Association.

TODAY'S TOP HEADLINES

Tech Stocks Regain Their Footing, Lift U.S. Market for a Second Straight Day

Investors are coming back to tech stocks, whose brutal start to 2026 turned some of the market's priciest companies into unexpected bargains.

The tech-heavy Nasdaq Composite Index rose for a second-straight day, climbing 0.8% on Wednesday for its biggest increase in more than a week. If the gains hold through Friday, the benchmark would snap its longest losing streak in almost four years. Through last Friday, the Nasdaq has dropped five weeks in a row.

Fed Minutes Reveal Little Appetite for Rate Cuts

Federal Reserve officials signaled little appetite for reducing interest rates at their meeting last month, with most indicating they wanted to see further progress on inflation before considering any more cuts-a process that could take months.

Moreover, even though two officials opposed the decision to hold rates steady at their Jan. 27-28 meeting and favored a cut, minutes of the meeting showed that other officials would have supported more neutral language characterizing the prospect of a rate cut or a rate increase as evenly balanced.

U.S. Gathers the Most Air Power in the Mideast Since the 2003 Iraq Invasion

WASHINGTON-The U.S. is sending significant numbers of jet fighters and support aircraft to the Middle East, assembling the greatest amount of air power in the region since the 2003 invasion of Iraq.

The U.S. is ready to take action against Iran, but President Trump hasn't decided whether to order strikes or-if he does order them-whether the aim would be to halt Iran's already-battered nuclear program, wipe out its missile force or try to topple the regime.

Nvidia Wins Meta Deal. Its Gain Is Broadcom's Loss.

Meta Platforms is expanding its business with Nvidia in a chips-and-networking deal likely to be worth tens of billions of dollars. It's a reminder the chip maker is still the leading designer of artificial-intelligence processors.

Under the terms of the extended deal, Meta will use millions of Nvidia's Blackwell and Rubin graphics-processing units. It is also planning a large-scale deployment of Nvidia's central-processing units.

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Expected Major Events for Thursday

05:30/NED: Jan Unemployment

05:30/NED: Feb Consumer confidence survey

06:00/FIN: Jan CPI

07:00/SWI: Jan Trade Balance

07:00/DEN: Feb Consumer expectations

07:00/DEN: 4Q Labour force survey

07:30/SWI: 4Q Industrial production

08:00/SPN: Dec Trade Balance

08:30/POR: Dec Balance of Payments

09:00/EU: Dec Euro area balance of payments

09:00/POL: Jan Average gross wages

09:00/POL: Jan PPI

09:00/POL: Jan Industrial Production Index

10:00/ITA: Dec Balance of Payments

10:00/EU: Dec Construction output

10:00/BEL: Feb Consumer Confidence Survey

11:00/POR: Jan PPI

11:00/IRL: Jan CPI

11:00/FRA: 4Q OECD Quarterly National Accounts: GDP growth

11:00/UK: Feb CBI Industrial Trends Survey

11:00/IRL: 4Q Labour Force Survey

15:00/EU: Feb FCCI Flash Consumer Confidence Indicator

All times in GMT. Powered by Onclusive and Dow Jones.

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

02-19-26 0016ET