EUROPEAN EQUITIES UPDATE: Gains across stocks ahead of US data and Trump-Putin summit

STOXX 600: +0.4%

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  European equity indices opened with gains on Friday, with the STOXX 600 and Euro Stoxx 50 both set for a second straight week of advances.


• Yesterday, Wall Street finished mixed, while overnight, APAC stocks mostly traded higher. Chinese data for July underwhelmed, with retail sales (+3.7% Y/Y vs exp. 4.6%), factory output, and investment all slowing; factory and mining production rose 5.7% Y/Y (exp. 5.9%), the weakest since November, reflecting pressure from price war crackdowns and lingering Trump-era tariffs.


• Japanese GDP grew 1% Y/Y in Q2 (exp. 0.4%), with Q1 revised to +0.6% from a preliminary contraction, bolstering the case for further BoJ rate hikes this year, although no 25bps hikes are priced in with only 17bps of tightening currently seen.


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  In terms of notable releases, US retail sales for July and University of Michigan Prelim sentiment for August are also due later. The key event of the day is the Trump–Putin meeting in Alaska after the European close, with markets watching for developments on Ukraine, sanctions, and trade.


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  The Trump-Putin summit has been repeatedly downplayed (Full preview on the Newsquawk headline feed), with President Trump suggesting there is a good chance of a second meeting and he would like to do a second meeting almost immediately which would include Zelensky if the first meeting goes okay, but there may not be a second meeting if he feels it is inappropriate or if he does not get the answers he wants.

Sectors: Positive bias

• Early trade sees broad-based gains in Europe, led by Basic Resources, Chemicals, and Autos, with the latter also supported by the Volkswagen–Xpeng partnership expansion.


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  Utilities see weakness after Fortum’s underwhelming Q2.


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  Tech also resides as a laggard amid the recent rotation away from tech following yesterday's


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  Luxury is also hampered amid earnings from Pandora (-12.8%) and the sub-par Chinese retail sales.

Movers:

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  Philips (PHIA NA) +0.6% – Plans to invest over USD 150mln in US manufacturing & R&D, expanding health tech capacity.


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  AstraZeneca (AZN LN) -0.2% – Slight underperformance after Soros exits stake in Q2.


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  Volkswagen (VOW3 GY) +1.1% – Expands EV, ICE, and PHEV integration partnership with Xpeng (XPEV).


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  Pandora (PNDORA DC) -12.8% – Q2 revenue missed expectations, though FY guidance reaffirmed.


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  Fortum (FORTUM FH) -3.2% – Q2 profit below forecasts, pressured by lower power prices and volumes.

US Equity Futures: ES +0.3%, NQ +0.1%, RTY +0.4%, YM +0.8%

• Futures are in the green, supported by a softer dollar, stable yields, and a constructive tone into the Trump–Putin meeting. Slight outperformance seen in YM amid UnitedHealth, who hold a 3.7% weighting in the DJIA (see below for details).


• Focus on upcoming US retail sales, sentiment data, and a busy Fed speaker slate including Barkin, Goolsbee, and Bostic.


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  Intel (INTC) - Rose 4.5% pre-market amid reports the Trump administration is in talks to take a stake in Intel to support its delayed Ohio chip plant.


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  Applied Materials (AMAT) (US) – Fell over 14% pre-market despite beats, citing weaker demand amid US-China trade tensions.


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  UnitedHealth (UNH) - Surged 12.5% pre-market as 13F filings showed Berkshire Hathaway purchased over 5mln shares in the insurer during Q2.

15 Aug 2025 - 09:50- ForexData- Source: Newsquawk