European and global markets navigated a mix of geopolitical tensions and corporate earnings on Friday, with Russia promising retaliatory measures against new EU sanctions, Ukrainian President Volodymyr Zelenskyy calling for enhanced strike capabilities, and major companies reporting earnings updates.
Investors reacted cautiously to these developments alongside recent US inflation data.
Russia vows retaliation against EU sanctions
Russian Foreign Ministry spokeswoman Maria Zakharova announced on Friday that Moscow would respond to the latest round of European Union sanctions with “effective and tough measures.”
Zakharova criticized Brussels’ approach, arguing that the EU continues a “suicidal course” that isolates it internationally.
The sanctions, officially adopted by the EU on Thursday, constitute the bloc’s 19th package targeting Russia’s gas exports.
Zakharova suggested that these measures are unlikely to pressure Russia effectively, and Moscow is preparing counteractions in response.
Zelensky calls for more deep strike capabilities
Meanwhile, Ukrainian President Volodymyr Zelenskyy emphasized the need for increased military support to pressure Russia.
Speaking at the Coalition of the Willing meeting in London, Zelensky highlighted the importance of advanced weapons, including Tomahawk missiles, Storm Shadow and SCALP missiles, as well as drones and rockets produced jointly with allies.
Zelensky argued that Russian President Vladimir Putin responds only to substantial pressure, noting that prior discussions on the possibility of Tomahawk strikes prompted Moscow to signal willingness to restart talks.
Zelensky pointed out that Russia abandoned diplomacy once pressure subsided, asserting that Moscow does not aim to end the war.
European markets end mixed amid inflation and earnings
European stock markets closed largely mixed on Friday, as investors digested new corporate results and US inflation data.
The annual inflation rate in the United States rose slightly to 3% in September, below forecasts, contributing to cautious investor sentiment.
Key corporate earnings in Europe were notable: NatWest’s total income rose 15.7% to £4.3 billion, Eni’s net profit climbed 59% to €865 million, and Sanofi reported net sales of €12.43 billion, up 7% year-over-year.
Spanish producer prices edged up 0.3% in September, while Eurozone business activity continued improving in October.
Market closes were mixed: the CAC 40 and DAX ended flat, while the EURO STOXX 50 rose 0.11% with Siemens Energy AG climbing 4.98%.
The FTSE 100 gained 0.64% as NatWest Group PLC advanced 4.91%.
Currency movements were relatively muted, with the euro trading flat at $1.16201 and the pound slipping 0.22% to $1.32930 against the US dollar.
Porsche reports revenue drop amid market challenges
Porsche AG Group reported sales revenue of €2.7 billion for the first nine months of 2025, a 6% decline from the same period in 2024.
Operating profit for the period reached €40 million, impacted by extraordinary expenses related to product strategy realignment, challenging market conditions in China, and US import tariffs.
Vehicle deliveries also fell 6% year-over-year to 212,509 units.
Despite these challenges, Porsche maintains its 2025 group sales revenue forecast at €37–38 billion, factoring in the 15% US tariffs introduced on August 1.
The company indicated that ongoing strategic adjustments and market conditions will influence performance for the remainder of the year.
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