EUROPEAN EQUITIES UPDATE: Indices broadly in the green, Tech boosted by TSMC results

STOXX 600: +0.6%

• European bourses opened firmer across the board and have traded sideways at elevated levels throughout the morning. Into the open, sentiment was lifted by TSMC's latest report and subsequent guidance.


• Recapping the latest Trump-Powell saga; US President Trump reportedly drafted a letter to fire Powell, which sent US stocks to lows, but Trump later denied these reports. On the trade front, the President suggested that they are very close to an India deal, could possibly make one with Europe & it is too soon to say re. Canada.


• Back to Europe, the UK’s jobs data was a bit of a mixed bag, but overall was suggestive of the ongoing weakening in the labour market with the unemployment rate unexpectedly ticking higher. Elsewhere, the EZ HICP Final metrics were left unrevised.

Sectors: Positive

• European sectors hold a strong positive bias, with only a couple of industries holding marginally in negative territory.


• Industrials take the top spot, lifted by post-earning strength in ABB (discussed in SMI section). Followed closely by Autos and then Tech.


• To delve in deeper; Autos is lifted by strength in Volvo Car AB (+9%, Rev beat, new EVs expected to have better margins, turnaround plan on track) and Volvo AB (+1%), following Q2 metrics from the pair of them. Elsewhere, Tech has been boosted following strong Q2 earnings from TSMC; the Co. beat on Net Profit, provided stronger-than-expected Q3 metrics and now expects rev. to rise by around 30% (prev. saw mid 20s%).

Majors: SMI +0.6%, FTSE 100 +0.4%

• The SMI is modestly firmer, and performance is about in-line with European peers. ABB (+5%) sits towards the top of the pile after its Q2 results, where it reported stronger-than-expected revenue figures and record orders. Elsewhere, Novartis (-1.2%) sits at the foot of the index after its results; overall its Q2 metrics were strong, where it also lifted its FY25 core op. income guidance. The weakness may be attributed to the departure of CFO Kirsch, who is considered one of the best in the industry; other desks also highlight weaker-than-expected figures within the drug breakdown of the total Sales figure. Outside of the SMI: Swatch (+2.2%) benefits after its results, which were not good; but the Co. did offer caveats for a weak op. result, citing “the deliberately maintaining of production capacities and jobs in Switzerland”. More interestingly, are the comments on China, whereby it saw signs of improvement and therefore “expects improved market in the Greater China region in H2'25”.


• The FTSE 100 is also modestly higher today. Key earnings today include; easyJet (-7%) which sinks after maintaining guidance but highlighted earnings will be impacted by French ATC strikes. Elsewhere, Ocado (+14%) soars after it reported strong metrics and reaffirmed that the “core priority [is] to turn cash flow positive during FY25”.

US Equity Futures: ES U/C, NQ +0.1%, RTY -0.2%

• US equity futures are modestly mixed and trade on either side of the unchanged mark; the NQ is the incremental outperformer, with sentiment in the Tech sector boosted post-TSMC results.


• Key mover today is Sarepta Therapeutics (+34%), which soars after it announced a restructuring plan to prioritise high-value programmes and meet 2027 financial obligations, cutting about 500 jobs.


• The US Day sees the release of retail sales data, import/export prices for June (export prices seen +0.3% M/M, import prices seen unchanged), weekly initial jobless claims are seen at 235k from 227k. Elsewhere, Business Inventories for May, Philly Fed for July, and NAHB housing market data are due. The Atlanta Fed GDPNow tracker will be updated in wake of today’s data (currently at 2.6%). Today’s speakers include: Fed’s Kugler (voter; text only), Fed’s Daly (2027 voter, giving an interview to Bloomberg TV), Fed’s Cook (voter), and Fed’s Waller (voter; text and Q&A due), who will speak on the economy.

17 Jul 2025 - 10:20- ForexData- Source: Newsquawk