EUROPEAN EQUITIES UPDATE: Europe place catch-up but US futures wane

STOXX 600: +5.4%

• European bourses opened on a very strong footing, as the region reacted to the latest Trump tariff updates.


• On that, Trump announced a 90-day pause & cut reciprocals to 10% for nations that asked for talks. Although, the President did lift the tariffs on China to 125% from 104%. For Europe specifically, the European Commission says it will closely consult with member states and industry before deciding on the next steps regarding Trump's tariff situation.


• In terms of price action, indices have been gradually edging off best levels since the European cash open – there is no specific driver for the pressure, but potentially some profit-taking, given the hefty advances.


• EZ docket has been light thus far and is not expected to pick up; focus therefore will be on US CPI and a slew of Fed speakers dotted throughout the day.

Sectors: Positive

• European sectors are entirely in the green, benefiting from the risk tone.


• Banks outperform today; the sector has been hit in the past few weeks given the yield uncertainty that entered the markets due to the latest Trump tariffs. Basic Resources and Tech are both benefiting from the positive risk tone.


• Travel & Leisure is also stronger today; the recent pause on tariffs has helped to alleviate some of the economic/recessionary related fears, and as such, the cyclical sectors are buoyed today. In the prior session US airliners soared, with the likes of Delta and American Airlines jumping more than 22%.

Majors FTSE 100 +4%, DAX 40 +5.5%, FTSE MIB +6%

• The FTSE 100 is modestly firmer but not performing quite as well as peers (given no change from a UK standpoint regarding US tariffs). Banking names generally populate the top of the pile – Barclays (+12%) tops the pile; elsewhere, mining names are buoyed by strength in underlying metals prices – Anglo American (+8.5%). For stock specifics, JD Sports (+8%) builds on the prior day’s gains, with sentiment further boosted after the Co. announced a GBP 100mln share buyback. To the downside, Tesco (-6.5%) slips after its FY results; the supermarket reported in-line metrics, announced a GBP 1.45bln share buyback, but highlighted that profits are likely to fall this year.


• The FTSE MIB outperforms today thanks to his heavy weighting to Italian banks, which are benefiting from broader strength in the sector.

US Equity Futures: ES -1.6%, NQ -1.9%, RTY -1.9%

• Futures are lower across the board, giving back some of the significant strength seen in the prior session which saw the SPX gain more than 9% after US President Trump announced a 90-day pause on some tariffs.


• US CPI data is the key economic release, although the market’s attention may be somewhat lessened than usual, given that the tariff narrative is dominating. Weekly initial jobless claims are seen little changed at 223k from 219k. Today’s speaker’s slate includes: Fed’s Bowman (voter), Fed’s Logan (2026 voter), Fed’s Goolsbee (2025 voter), and Fed’s Harker (2026 voter) are also due.


• Goldman Sachs rescinds recession call after Trump tariff pause.

10 Apr 2025 - 10:10- ForexData- Source: Newsquawk