EUROPEAN EQUITIES UPDATE: European stocks modestly higher, GSK LN +1% after FDA approval

STOXX 600: +0.3%

• European bourses opened incrementally firmer, and sentiment has gradually improved a little since the cash open.
• Fundamental trade developments have been light throughout this week, but some punchy reporting overnight via the FT suggested that US President Trump is pushing the EU to cut tariffs or face extra duties with US negotiators to tell Brussels they expect unilateral concessions.
• Back to Europe, docket today included German GDP figures for Q1 which printed above expectations – though this can be attributed to temporary frontloading ahead of US tariffs. Elsewhere, for the UK; Retail Sales topped expectations; a figure that Pantheon Macro suggests will have a positive impact on Q2 GDP growth, and led them to boost its forecast for that quarter.

Sectors: Positive

• European sectors opened without a clear bias, but have since moved to a strong positive direction.
• Basic Resources tops the pile, joined closely by Travel & Leisure and then Healthcare. There have been a few updates from within the Healthcare sector today, including from; GSK (FDA Nucala approval), Roche (FDA approves Susvimo), Novo Nordisk (GLP-1 drug seen to reduce cancer risks).
• Optimised Personal Care and Retail sit towards the bottom of the pile.

Individual movers:

• GSK is firmer by around 1% after Nucala (mepolizumab) was approved by FDA as add-on maintenance for adults with inadequately controlled COPD and eosinophilic phenotype. Do note that this treatment rivals Sanofi, which has been pressured in today's session.
• Azimut (+4%) benefits today after the Co. signs a binding agreement with FSI for the creation of TNB. Transaction with a potential total value of about EUR 1.2bln to be realised over time.
• As for Italian banking, Banco BPM (+0.1%) has urged UniCredit (-0.1%) to drop its bid so that it can participate in Italian banking M&A. Most recently, UniCredit has appealed Italy's golden power rule.
• Novo Nordisk (+2%) benefits today after a study showed that GLP-1 diabetes drugs may reduce cancer risks slightly.

US Equity Futures: ES +0.2%, NQ +0.2%, RTY +0.4%

• Futures are modestly firmer across the board, following similar price action seen in Europe.
• In terms of pre-market movers; Autodesk (+3%, raised its FY revenue view, driven by strong demand for cloud-based design software), Workday (-7%, disappointing guidance), Uranium-exposed stocks (Oklo +17% / Vistra +4%, Trump to signs orders to boost nuclear power as soon as Friday).
• Docket ahead is relatively quiet, some focus will be on building permit revisions for April, and new home sales data for April (expected at 693k from 724k). Elsewhere, Fed's Musalem and Cook are set to speak.