Morning Wrap (23.10.2025)

• S&P 500 futures are gaining this morning, while the Nikkei 225 fell 1.3%, reflecting negative sentiment in Asia after overnight declines on Wall Street. India's Nifty is up (+0.7%) following reports of a possible reduction in US tariffs on Indian goods. DAX and Euro Stoxx 50 contracts are trading slightly lower.

• The USD is clearly dominating the morning session, strengthening against major pairs after several days of correction; the JPY remains the weakest in the G10, USDJPY 152.41 (+0.28%).

• WTI rises to USD 60.80 per barrel (+2.46%), continuing its gains after the announcement of new US sanctions on Russian companies Rosneft and Lukoil and pressure on India and the EU to limit Russian oil imports. The US has imposed new sanctions on Russian oil (Rosneft, Lukoil, subsidiaries); Trump suggests that the restrictions are intended to force Putin to be rational in peace negotiations with Ukraine.

• Gold falls to 4091USD/oz, remaining relatively close to yesterday's closing levels as the market awaits Friday's US CPI data.

• Trump maintains plans to meet with Chinese President Xi and hopes for an agreement on trade, raw materials, and soybeans; relations with Putin remain tense after disappointing attempts at negotiations in Budapest and Alaska.

• Tesla reported record quarterly revenue ($28.1 billion, +12% y/y) and record FCF ($3.99 billion), with record vehicle deliveries (497,099 units, +7% y/y) and strong energy storage deployments (12.5 GWh, +81% y/y); operating margins were lower due to higher costs and tariffs.

• SAP disappointed in terms of revenue (EUR 9.08 billion vs. expected EUR 10.61 billion) and slightly below EPS forecasts (EUR 1.72 vs. EUR 1.73), but strong growth in cloud services (+27% y/y) supports long-term potential; the company continues to integrate AI.

What to watch today?

• Today, the CBRT is scheduled to announce its interest rate decision, US natural gas inventory data will be released, and Canada's retail sales report will be published.

• The market is following details of further sanctions on Russia, India's response to US pressure on oil imports, and progress in Trump-Xi trade talks.

• The focus is likely to remain on Tesla and SAP shares after their earnings reports and the reaction of commodity and energy companies to new US sanctions.