EUROPEAN EQUITIES UPDATE: Europe plays catch-up to state-side losses yesterday

STOXX 600: -0.6%

• European bourses opened mostly and modestly lower and have traded sideways throughout the morning thus far.


• Sentiment in Europe today is fairly gloomy, playing catch-up to the hefty losses seen in the US on Monday (reminder: Europe was shut on account of Easter Monday).


• There are several reasons for the pressure on Wall Street on Monday, these include; a) ongoing pressure on Fed Chair Powell by the US President, raising fears of a long-term inflation resurgence, b) China warning countries against striking deals with the US at their expense, c) the ongoing sell-US theme, d) negative updates from Tesla and NVIDIA. As for today, Japanese trade negotiators have reportedly complained that the US keeps changing the terms of what it wants.


• In terms of the docket from a European standpoint; EZ Consumer Confidence and speak from ECB’s Lagarde, Knot and de Guindos are all due.

Sectors: Negative

• European sectors hold a negative bias, in-fitting with the risk tone.


• Real Estate takes the top spot, benefiting from the relatively lower yield environment (in Europe). Insurance follows closely behind, with both Helvetia and Baloise jumping around 4% after the pair announced a merger of equals to form a leading European insurance group.


• Tech sits towards the foot of the pile, attempting to play catchup to the broader losses in the US seen on Monday, where the likes of NVIDIA and Tesla slipped more than 4% and 5% respectively.


• Healthcare has been weighed on today by significant pressure in Novo Nordisk (-8%) – which has been hit as traders digest the latest updates from rival Eli Lilly. On Thursday, the US pharmaceutical company released a positive update regarding its obesity pill, in which it showed comparable performance to injectable treatments.

Majors FTSE 100 +0.2%, CAC 40 -0.5%, DAX 40 -0.4%

• The FTSE 100 is in modestly positive territory and faring better vs peers in Europe, largely thanks to its relatively high exposure to mining names; predominantly gold miner, Fresnillo (+3.5%), tops the index as spot gold once again makes a fresh record high, this time at USD 3,500. To the downside, it is worth noting that Cos which have exposure to the US sit towards the foot of the pile; the likes of Flutter (-5%), Entain (-3%), FirstGroup (-1%) are all lower. Elsewhere, BoE's Greene said US tariffs represent more of a disinflationary risk than an inflationary one for the UK.


• The CAC 40 is extending losses today, with losses to a similar degree as peers. L’Oreal (+1.8%) sits at the top the index after reporting better-than-expected Q1 results. The beauty group highlighted that it experienced a more challenging environment in the US, whilst China was a little better than expectations.

US Equity Futures: ES +0.7%, NQ +0.8%, RTY +0.8%

• Futures are entirely in the green, attempting to pare back some of the hefty losses seen in the prior session; largely a factor of the ongoing Trump-Fed attacks and US tariff uncertainty.


• The US day ahead is relatively light from a data perspective, only the US Richmond Fed Index is scheduled. Things are much busier from a central bank perspective, with a slew of Fed speakers on the docket; Fed’s Jefferson, Harker, Kashkari, Kugler & Barkin are all due.


• Earnings season is also underway, highlights include; Tesla, Verizon, GE Aerospace, Lockheed Martin, Danaher & Elevance.

22 Apr 2025 - 10:00- ForexEU Research- Source: Newsquawk