EUROPEAN EQUITIES UPDATE: Bourses mixed but off best levels, MBG GY boosted by analyst call

STOXX 600: U/C

• European Bourses have opened slightly mixed, but prices have been moving a little lower since. Upside is seen in the DAX (+0.1%), CAC 40 (+0.3%) and Euro Stoxx 50 (0.3%) whilst the FTSE 100 (-0.1%) and AEX (-0.2%) are negative.


• In France, President Macron is due to meet with leaders of all political parties apart from RN and the radical left party (France Unbowed) with Macron said to pick a new Prime Minister following the resignation of Lecornu on Monday.


• Newsflow has been, and will continue to remain light for the remainder of the day.

Sectors: Mixed

• European sectors have opened mixed this morning. The biggest winners this morning are Automobiles & Parts (+1.2%), Telecommunications (+0.6%) and Banks (+0.5%). Automobiles have been given a lift by the German automobile sector. Mercedes (+3.2%) moves higher after the company’s pre-close call on Thursday, where analysts highlighted that cash flow guidance remained unchanged, differing from the likes of BMW, which recently downgraded its outlook.


• There’s been no clear driver for the recent uptick in Telecoms. However, the recent uptick in Bank is likely a market correction from yesterday's steep decline.


• To the bottom of the pile is Basic Resources and Energy. For the former, perhaps some profit-taking after recent outperformance, and as underlying metals move lower today. In Energy, we have also seen similar trends with downside in crude seen after Israel-Hamas agreed to the ceasefire deal.

Movers:

• Stellantis (+2.1%) has seen gains in shares following Q3 updates of 1.3mln units, +13% Y/Y. Primarily driven by N. America (+35%) contributing to the gains seen in Auto.


• Volkswagen (+0.6%) has seen gains in shares following reports that the Co. has made further progress on its market share for EV’s in Europe, lifting the Auto sector.


• ArcelorMittal (-2.2%) shares have slipped, weighing down the Basic Resources after being downgraded to Neutral from Buy at Goldman Sachs; writing that the stock now screens as fully valued on forecasts, medium-term growth and EU recovery exposure.

US Equity Futures: ES NQ RTY +0.1%

• US futures are a touch firmer with NQ (+0.1%), ES (+0.1%) and Dow Jones (+0.1%) a touch firmer. China reportedly launched a custom crackdown on NVIDIA AI chips; however, this has had little impact on NVIDIA’S stocks in the pre-market.


• Elsewhere, BLS is preparing to release a September US CPI report despite the shutdown, according to the NYT.


• Looking ahead, newsflow is light, but we do have Fed Musalem speaking and data from the University of Michigan.

10 Oct 2025 - 09:55- EquitiesEU Research- Source: Newsquawk