EUROPEAN EQUITIES UPDATE: A marginally firmer start to European cash trade while US futures dip into the red

STOXX 600: +0.2%

• European bourses are mostly, but modestly firmer as markets cool a touch from the significant upside seen in the prior session. Price action this morning has been relatively rangebound, given the lack of fresh catalysts thus far.


• Trade updates have also been lacking today, aside from a statement from a White House Executive Order which said the US will cut the minimum tariff on China shipments from 120% to 54%, and a minimum flat fee of USD 100 is to remain.


• Docket today has included: UK Jobs Data (in-line), German ZEW (mixed) - no sustained reaction on the figures.

Sectors: Positive

• European sectors hold a slight positive bias, but with the breadth of the market fairly narrow.


• Basic Resources leads, followed closely by Retail and Travel & Leisure to complete the top three.


• Real Estate underperforms today, largely thanks to losses in Vonovia (-3.5%) after the Co. filed for EUR 1.3bln in convertible notes. Elsewhere, Insurance has been dragged down by post-earning losses in both Munich Re and Hannover Re (discussed below).

Others: DAX 40 +0.1%, FTSE 100 U/C, IBEX 35 +0.6%

• The DAX 40 is modestly firmer/flat, in-fitting with the tentative risk tone today. There have been a number of key earnings from within the index today, starting with Insurance names; Munich Re (-3.6%) slumped at the open after it reported lower Q1 Net Result and saw a near 50% decline in profits due to the LA wildfire claims. Hannover Re (-3%) also dips after missing on top- and bottom-line figures – nonetheless, it did confirm 2025 guidance. To the gainers; Bayer (+10.5%) soared at the open after reporting strong Q1 results and noting that it sees 2025 Pharma sales and Adj. EBITDA margin at upper-end of guidance range.


• The IBEX 35 is on a stronger footing today. In terms of stock specifics, Grifols (+5.2%) gains after it beat on its Adj. EBITDA figure and affirmed its guidance.

US Equity Futures: ES -0.4%, NQ -0.5%, RTY -0.5%

• Futures are modestly in negative territory, as the complex gives back some of the prior day’s US-China induced upside.


• Focus has been on a Bloomberg report, which suggested China has lifted its month-long ban on Boeing aircraft deliveries following a breakthrough in US-China trade talks that temporarily reduced tariffs.


• The highlight of the US data day is the CPI data for April. Analysts expect US headline CPI to rise +0.3% M/M in April (prev. -0.1%), with the annual rate seen unchanged at 2.4% Y/Y. The core rate is also expected to rise +0.3% M/M (prev. +0.1%), with the annual rate of core CPI seen unchanged at 2.8% Y/Y. Additionally, April's NFIB business optimism index, and weekly RedBook data are due. US President Trump will begin his visit the Middle East.

13 May 2025 - 10:15- ForexData- Source: Newsquawk