EUROPEAN EQUITIES UPDATE: A sea of green in Europe as sentiment improves; NVDA due

STOXX 600: +0.5%

• European bourses opened the session entirely in the green and have generally traversed best levels throughout the morning.


• The strength seems to be a resurgence of improved sentiment following the significant pressure seen in the prior session, which was sparked by comments by Russia’s Kremlin which noted a nuclear response could be on the table.


• Today's release of EZ Negotiated Wages for Q3 printed at 5.42%, well above the prior 3.54%; the release has lost significance over the past few months and as such had little impact on the complex.

Sectors: Positive

• European sectors hold a strong positive bias, with only a couple of sectors found in negative territory. The breadth of the market to the upside is fairly narrow, with no clear outperformer.


• Construction & Materials top the pile, joined by Tech and then Basic Resources; the latter pair buoyed by the positive risk tone.


• Real Estate is found at the foot of the pile, given the relatively higher yield environment.

Indices FTSE 100 +0.2%, CAC 40 +0.5%, DAX 40 +0.6%

• The FTSE 100 is on a firmer footing but marginally underperforming vs peers after today’s UK inflation metrics came in above expectations; figures which have lifted the Pound.


• Sage Group (+17%) soared at the open after the Co. reported strong results and announced a GBP 400mln share buyback programme. Severn Trent (+3.8%) is also firmer after it reported a rise in profit and forecasts highest ever annual capex.


• The CAC 40 is incrementally firmer; Edenred (+2.9%) tops the pile after announcing a EUR 39mln share buyback mandate. Luxury names are firmer today, given the positive risk tone; Kering (+2.1%). STMicroelectronics (-0.3%) is ultimately little changed after the Co. maintained its 2030 targets.


• In M&A, Grifols (GRF SM) rejected Brookfield's EUR 6.45bln offer (or 10.50/shr vs Grifols Tuesday closing price of 10.34/shr), arguing it undervalues the company's potential.

US Equity Futures: ES +0.2%, NQ +0.2%, RTY +0.2%

• Futures are modestly firmer across the board, attempting to build on the prior day’s gains and as traders remain laser-focused on NVIDIA (+0.3% pre-market) results after-hours.


• The US Day sees the release of weekly MBA mortgage application data. On the speaker's slate, Fed's Barr (voter) will testify before House Financial Services Committee; Fed's Cook (voter) will speak on the economy (Cook hasn't given monpol remarks since September); Fed's Bowman (voter) will speak on agency policymaking.


• PREVIEW - NVIDIA (NVDA) EARNINGS: The AI bellwether will report Q3 earnings on November 20th, at around 16:20EST/21:20GMT. Option Traders are pricing in a 9.9% move on earnings, and the stock has averaged a 9.8% move in recent quarters. Nvidia is expected to report Q3 EPS of 0.74/shr on revenue of USD 32.87bln, with Data Centre sales expected at USD 28.51bln. (Full preview on the Newsquawk board).

20 Nov 2024 - 10:20- EquitiesResearch Sheet- Source: Newsquawk