Both Volvo and Volkswagen have warned that Europe’s auto industry could face severe production halts if the disruption linked to Nexperia’s nationalization is not swiftly resolved. The Dutch semiconductor maker’s takeover by the government—under U.S. pressure—has strained chip supplies, threatening vehicle output across the continent.
Meanwhile, EU leaders have postponed until December a decision on whether to confiscate frozen Russian assets, reflecting internal divisions on how far to escalate measures against Moscow.
Across the Atlantic, President Donald Trump abruptly ended trade talks with Canada, criticizing a government advertisement that used the voice of former U.S. President Ronald Reagan—a move that risks unsettling already fragile trade relations.
On the economic front, euro-area PMIs painted a mixed picture. Germany recorded its fastest expansion since 2023, while France’s business activity shrank amid political uncertainty. The HCOB Flash Eurozone Composite PMI came in at 49.7, signaling a slight contraction. In France, the flash services PMI fell to 47.1, a six-month low, and the composite PMI dropped to 46.8.
Despite the crosscurrents, European equities and U.S. futures were marginally higher, as investors await fresh developments on global trade negotiations.