EUROPEAN EQUITIES UPDATE: Bourses broadly lower after a slight dip in sentiment

STOXX 600: U/C

• European bourses opened around the unchanged mark, but sentiment then slipped as markets turned risk-off across the board in the continent. That pressure has since slowed down a little and are off worst levels – but indices are still broadly lower.


• European docket today has included a UK Jobs report, which was largely in-line; the unemployment rate remained at 4.7%, whilst earnings ticked higher (in-line with expectations). No move in FTSE 100 futures at the time. As for Germany, German ZEW Economic Sentiment ticked higher and topped expectations whilst Conditions were a little lower; "Financial market experts are cautiously optimistic and the ZEW indicator has stabilised, but the economic situation has worsened" - no move in contracts or cash seen on this. Data aside, there have been a couple of ECB speakers today; Kazaks said the reduction in the ECB rates is already very significant, whilst Villeroy focused on France. He said that French growth is not strong enough, but remains positive – this follows on from the Bank of France cutting its growth forecasts for 2026 and 2027.


• More broadly for the Fed, the US Appeals Court rejected US President Trump’s bid to fire Cook, meaning she will now be able to attend the FOMC's September 16th-17th meeting. As for Stephen Miran, the Senate confirmed him to join the Fed board.


• Data docket for the remainder of the day is light from a European perspective, but focus will be on potential commentary from ECB’s Escriva.

Sectors: Negative

• European sectors are broadly on the backfoot, in-fitting with the risk tone.


• IT is towards the top of the pile, boosted by strength across Dutch semiconductor names; nothing really driving the upside today, but it does come after ASML (+3%) once again overtook SAP, to become Europe’s largest company.


• Consumer Staples is found towards the bottom of the pile; Unilever (-1%) moves lower after it appointed a new CFO. The CEO said that the appointment “brings financial rigour, strategic clarity”. On the other hand, Danone (+0.3%) moves higher after the Co. received an upgrade to Buy from Underperform at Jefferies; analysts highlight that whilst "creamers are still challenged", the momentum in protein dairy has "exceeded expectations".

Movers:

• Kier +8%; FY missed headline consensus, but noted FY26 is trading ahead of expectations.


• Anglo American +0.9%; Anglo American and Codelco finalise agreement; Canadian PM Carney told Anglo American it must relocate its HQ to Canada.


• Beiersdorf -1.4%; downgraded to Hold from Buy at Jefferies, analysts write that its Nivea brand has stalled YTD, but would need to sustain 4% organic sales for "the stock to work".


• L'Oreal -2.1%; downgraded to Underperform from Hold at Jefferies


• easyJet -2.1%; downgraded to Neutral from Overweight at JPMorgan


• Novo Nordisk +0.5%; Wegovy survey showed 46% reduction in constant intrusive thoughts about food.


• Schindler -3.5%: Holder offers 600k shares; ABB priced at CHF 285/shr; final deal size circa. USD 215mln.

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

• Futures are incrementally firmer today, continuing the upside seen in the prior session, ahead of US Retail Sales.


• Key stories: Reuters reports that NVIDIA’s RTX6000D AI chip has “lukewarm” demand, and is seen as not “cost-effective”; shares -0.1% pre-market. Elsewhere, Microsoft (+0.4% pre-market) lifted its dividend by 10%.


• Day ahead: The pace of gains in US retail sales data are expected to pare back in August. Analysts expect US retail sales to rise +0.2% M/M in August (prev. 0.5%), while the ex-autos measure is seen rising +0.4% M/M, matching the July reading, and the Retail Control group is seen +0.4% M/M (prev. +0.5%). US import prices are seen -0.1% M/M (prev. +0.4%), and export prices are seen unchanged (prev. +0.1% M/M). US industrial production is seen falling by -0.1% M/M (prev. -0.1%), manufacturing output is seen -0.2% (prev. 0.0%), and capacity utilisation is seen at 77.4% (prev. 77.5%).


• In a recent note, Morgan Stanley writes that they continue to lean towards a 7200 bull case for the S&P 500, by the middle of next year. Analysts cite “better and broader” earnings growth and a deteriorating labour market in the coming months could see the Fed turn more dovish, which would boost stocks.

16 Sep 2025 - 10:15- ForexEU Research- Source: Newsquawk