EUROPEAN EQUITIES UPDATE: European indices modestly firmer, ROO LN +17% amid takeover approach

STOXX 600: +0.3%

• European bourses opened modestly firmer across the board, and have traded rangebound throughout the morning thus far.
• Trade updates over the weekend have included WSJ sources suggest USTR’s Office has a framework for staggered reciprocal trade negotiations; Fox’s Gasparino posted on X that the Trump Administration would like to roll out trade deals this week. Ultimately, reports which have had little impact on the complex.
• The European day has been exceptionally quiet, and aside from a couple of ECB speakers, it does look to remain that way for the remainder of the day.

Sectors: Positive

• European sectors hold a strong positive bias, but with the breadth of the market fairly narrow.
• Food Beverage & Tobacco takes the top spot, joined closely by Autos.
• Real Estate sits at the foot of the pile, given the relatively higher yield environment today. Basic Resources is hampered by lower prices in the metals complex.

Majors: FTSE 100 +0.2%, DAX 40 +0.3%

• M&A stories to know: Mediobanca (U/C) has launched a EUR 6.3bln offer for Banca Generali (+8%); the board of Banca Generali is expected to meet today for a preliminary review of the bid, according to Reuters. Elsewhere, Merck (-1.5%) signed a deal to acquire Springworks Therapeutics, a deal which will immediately contribute to Merck’s revenue and be accretive to EPS in 2027. Deliveroo (+15.5%) jumped at the open after the Co. said it received a GBP 2.7bln bid from DoorDash – thereafter, Deliveroo suspended its GBP 100mln share buyback programme. ITV (-2.5%) is reportedly a takeover target for France's Banijay.
• The FTSE 100 is modestly firmer today and trading about as well as European peers; Entain (+2.4%) tops the pile, whilst Marks & Spencer (-3.1%) sits at the foot of the pile; the latter hampered as investors continue to digest the latest cyberattack.

US Equity Futures: ES -0.3%, NQ -0.4%, RTY -0.6%

• Futures are modestly lower across the board, but with some underperformance in the RTY.
• US docket ahead is relatively light aside from the US Dallas Fed Manufacturing Business Index. Focus, therefore, will be on other key US data releases, incl. US PCE and NFP.
• Earnings today: Domino's Pizza, Roper, NXP Semiconductors.