Tech Earnings Disappoint (Tesla, Netflix); Gold Retreats

The EUR/USD pair held steady near 1.1600 on Wednesday, showing little reaction amid a quiet economic calendar on both sides of the Atlantic. Market participants remain cautious ahead of the delayed release of the US Consumer Price Index (CPI) report, scheduled for Friday.

Geopolitical tensions continue to dominate sentiment, with persistent US-China trade frictions and the unresolved Russia–Ukraine conflict weighing on the euro. The recent cancellation of a planned Putin–Trump meeting in Budapest further limited the common currency’s upside.

Adding to the cautious tone, Reuters reported that Washington is considering new export restrictions on China involving products made with US software — a move that could heighten risk aversion and pressure the euro.

The ongoing US government shutdown has now entered its 22nd day, with little progress toward a resolution. Democratic House Leader Hakeem Jeffries expressed hope that an agreement could be reached by the end of October, though optimism remains limited.

In Europe, ECB Governing Council member Martins Kazaks stated that the next policy adjustment could “as easily be a hike as a cut,” underscoring the uncertainty surrounding the central bank’s future rate path.

Looking ahead, the US economic calendar features S&P Global PMIs and the September CPI report on Friday. The data could provide key insights ahead of next week’s Federal Reserve policy meeting, where markets expect a 25-basis-point rate cut to a 3.75%–4.00% range.

Gold prices extended losses on Wednesday as investors locked in profits following the metal’s sharpest single-day decline in five years. Traders turned cautious ahead of key US inflation data due later this week, which could shape expectations for the Federal Reserve’s next policy move.

The decline follows Tuesday’s 6.1% plunge, the steepest daily drop since 2019, which came just a day after gold hit an all-time high.

The US Consumer Price Index (CPI) report for September — delayed due to the ongoing US government shutdown — is expected to show core inflation holding steady at 3.1%.

Gold, a non-yielding asset, typically benefits in low-interest-rate environments as reduced yields lower the opportunity cost of holding bullion.

Meanwhile, geopolitical factors continue to influence sentiment. Russia confirmed it is still preparing for a possible Putin–Trump summit, while investors are also awaiting clarity on a potential meeting between Trump and Chinese President Xi Jinping next week.

Oil prices extended gains late Wednesday after the United States announced new sanctions on Russia’s energy sector, targeting two of the country’s largest oil producers over Moscow’s ongoing war in Ukraine.

“Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine,” said U.S. Treasury Secretary Scott Bessent, announcing measures against Lukoil and Rosneft.

Oil prices also drew support from signs of robust U.S. fuel demand and tighter supply. According to the Energy Information Administration (EIA), U.S. crude inventories fell by 961,000 barrels to 422.8 million last week, defying expectations for a 1.2 million-barrel increase.

The sanctions come amid renewed geopolitical uncertainty. Western governments have increased pressure on Asian buyers to curb Russian oil imports, raising fears of potential supply disruptions.

Concerns were further amplified after a planned summit between U.S. President Donald Trump and Russian President Vladimir Putin was postponed.

Meanwhile, Trump said he had spoken with Indian Prime Minister Narendra Modi, who reportedly assured him that India would limit its oil purchases from Russia.

U.S. stocks closed lower on Wednesday as renewed U.S.-China trade tensions and a sharp decline in Netflix shares weighed on investor sentiment.

Investor nerves flared after a Reuters report indicated that the Trump administration is considering a ban on Chinese exports produced with U.S. software, reigniting trade war concerns between the world’s two largest economies.

Netflix tumbled after reporting a third-quarter operating margin of 28%, missing Wall Street estimates due in part to a tax-related charge in Brazil.

Despite the margin disappointment, the streaming giant’s revenue and profit rose, supported by record advertising sales, higher membership growth, and price increases. Apple edged lower after a Nikkei report said the company is significantly reducing production orders for its new iPhone Air, shifting focus to other iPhone 17 models.

All eyes were on Tesla, which reported results after the closing bell. The automaker earlier announced record third-quarter deliveries, driven by aggressive marketing and price cuts ahead of the expiration of the $7,500 U.S. EV tax credit.

Broader sentiment remained fragile amid escalating geopolitical tensions. A potential summit between Trump and Russian President Vladimir Putin has been postponed after Moscow reportedly signaled no intention to end the conflict in Ukraine. Investors are now turning their attention to Friday’s U.S. Consumer Price Index (CPI) report, which could shape expectations for a potential Federal Reserve rate cut at its October meeting.