Key Takeaways
- German federal police have conducted raids at Deutsche Bank (DBK) locations in Frankfurt and Berlin amidst a money laundering investigation.
- General Dynamics (GD) reported strong Q4 2025 earnings, surpassing analyst expectations for both EPS at $4.17 and revenue at $14.38 billion.
- U.S. MBA Mortgage Applications plummeted by 8.5% last week, with the 30-year mortgage rate climbing to 6.24%, signaling a significant slowdown in housing market activity.
- ADP (ADP) exceeded Q2 2026 expectations with adjusted EPS of $2.62 and revenue of $5.4 billion, while MSCI (MSCI) posted mixed Q4 2025 results, beating EPS but missing revenue and 2026 free cash flow guidance.
- UK Prime Minister Keir Starmer is on a four-day visit to China, emphasizing the need for both nations to manage their differences and expand economic cooperation.
Banking Sector Under Scrutiny
German federal police initiated raids at Deutsche Bank (DBK) locations in Frankfurt and Berlin on Wednesday morning. The operations are part of an ongoing investigation into suspected money laundering activities, targeting both bank employees and other unnamed individuals. Deutsche Bank confirmed the searches and stated its full cooperation with the public prosecutor's office.
Corporate Earnings Roundup
Defense giant General Dynamics (GD) announced robust Q4 2025 earnings, with an EPS of $4.17, exceeding the estimated $4.11. Revenue also beat forecasts, coming in at $14.38 billion against an estimated $13.81 billion. While free cash flow reached $952 million, above the $893.4 million estimate, the operating margin slightly missed expectations at 10.1% compared to an estimated 10.4%.
In the human capital management sector, ADP (ADP) reported strong Q2 2026 results, with adjusted EPS of $2.62 surpassing the $2.58 estimate, and revenue of $5.4 billion exceeding the $5.34 billion forecast. The company's PEO Services revenue was in line with estimates at $1.76 billion, and it maintained its full-year employer services new bookings guidance of +4% to +7%.
Meanwhile, MSCI (MSCI) delivered mixed Q4 2025 earnings. The company's adjusted EPS of $4.66 beat the $4.59 estimate, but operating revenue of $822.5 million fell short of the $825.2 million estimate. Furthermore, MSCI's 2026 free cash flow guidance of $1.47 billion to $1.53 billion was below the estimated $1.6 billion.
Economic Indicators and Cryptocurrency Activity
The U.S. housing market showed signs of cooling as MBA Mortgage Applications dropped by a significant 8.5% last week, following a 14.1% increase in the prior week. Concurrently, the 30-year mortgage rate rose to 6.24% from the previous 6.16%, potentially impacting borrower demand.
In the cryptocurrency space, Circle has minted another $500 million in USDC on the Solana (SOL) blockchain within the last 24 hours. This activity adds substantial liquidity to the Solana network, building on earlier reports of Circle minting $750 million USDC on Solana at the start of 2026, and $4.25 billion USDC over the past seven days.
The Euro has seen a rally to $1.20 against the U.S. dollar, a movement that is reportedly spurring further buying and creating a headache for the European Central Bank (ECB). Analysts suggest this appreciation is driven by stronger Eurozone growth and expectations of the ECB holding its policy rate steady.
Geopolitical Developments
UK Prime Minister Keir Starmer has commenced a four-day visit to China, marking the first such trip by a British Prime Minister since 2018. Starmer emphasized the importance of a "comprehensive and consistent approach" to China, focusing on managing differences while seeking opportunities for economic cooperation. He stated that the UK would not be forced to choose between its relationships with the U.S. and China.
Separately, U.S. intelligence reports have raised doubts about the cooperation of interim Venezuelan President Delcy Rodriguez with the Trump administration's efforts to sever ties with U.S. adversaries, including China, Iran, and Russia. Despite U.S. officials publicly calling for such a move, Rodriguez has yet to make a public announcement.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.