EUROPEAN EQUITIES UPDATE: LVMH and ASML earnings boost European equities

European Equities

• European equities have opened with gains today, following encouraging updates from ASML and LVMH (see below for details), with the region shrugging off rising trade tension with China and the US over recent days. The only downside is seen in the FTSE 100 amid underperformance in the index-heavy healthcare sector, and potentially due to BoE Governor Bailey expressing concern over the UK economy operating below potential and a weakening jobs market, with caution seen in UK equities.


• The CAC 40 (+2.4%) is the outperformer, following earnings from LVMH (+13.4%), which saw Q3 Revenue of EUR 18.28bln, beating forecasts of EUR 18.24bln. Furthermore, political stability in France after the Socialist Party signalled their support for Lecornu’s government, after agreeing not to vote against the temporary pension plan suspension, has boosted sentiment for French assets.


• Elsewhere, European tech giant ASML (+3%) reported earnings - Q3 revenue at EUR 7.516bln was below the expected EUR 7.790bln but Net Income topped forecasts. This, alongside better-than-expected margins, and the announcement of intentions of a share buyback, lifted sentiment for the stock, the sector, its home index, and the region - Euro Stoxx 50 (+1.3%) and the AEX (+0.8%).


• Looking ahead, tier one releases for Europe are sparse, while for the Eurozone, ECB commentary is unlikely to shift the dial.

European Sectors

• European sectors have opened largely in the green, with the only downside being the Health Care Sector (-0.3%). No clear macro driver to explain the downturn in healthcare, but cyclical bias due to positive sentiment in the wider market has seen Health Care, which is more of a defensive sector, face minor headwinds.


• The standout sector today is the Consumer Products and Services sector (+5.9%), which is largely driven by gains in Luxury brands like LVMH (12.4%), Kering (+6%) and Hermes (+7%) following positive LVMH earnings.


• Media (+1.72%) and Technology (+1.6%) come in second and third place. There’s been no clear driver for the uptick in Media; however, positive earnings from ASML (+3.2%) have boosted the Technology sector. CFO also reported that the company is prepared for rare export controls and that the number of Chinese customers they have is increasing.

Movers

• Orange (+3.1%) - Co. to collaborate with LightOn, Edarat, and NVIDIA to launch Live Intelligence, a generative AI platform designed for use in the Gulf Cooperation Council region.


• Stellantis (+2.6%) - Co. is to invest USD 13bln to grow in the US with the Co. to expand US production by 50% and add 5000 jobs, plans five new vehicle launches and 19 product actions over the next four years. (Newswires).


• Entain (-1.9%) - Q3 Trading Update: 2025 guidance confirmed and sees further evidence of underlying momentum and quality of business. Total NGR, +6%. “The Group is well placed into Q4 2025 and 2026. Our clear focus on cash generation and ongoing strategic delivery underpins Entain's confidence in generating over £0.5bn of annual adjusted cash flow from 2028”.#


• Strabag (-9.2%) - Haselsteiner Familien-Privatstiftung to sell 2.5mln in shares.

US Futures:

• US futures are indicative of a positive cash open. ES (+0.5%), RTY (+ 0.8%) and NQ (+0.7%) are firmer in the premarket. Dovish-leaning remarks from Fed Chair Powell last night regarding increased downside risk of the job market have increased sentiment for US equities. Newsflow from ASML will also have given the NQ some boost due to ASML’s position in the tech space.


• Eyes will still be on China and the US trade after Trump terminates business with China regarding cooking oil.


• Looking ahead, today’s speakers include Fed's Miran (voter; no text, only Q&A), Fed's Waller (voter; text and Q&A due), Fed's Schmid (2025 voter; no text expected, Q&A due), Fed's Bostic (2027 voter). The US Day sees the release of weekly MBA mortgage applications data. The NY Fed manufacturing gauge for October is expected to improve to -1.4 from -8.7. The Cleveland Fed will release its CPI gauge today. In afternoon trading, the Fed will publish its latest Beige Book.

15 Oct 2025 - 10:00- EquitiesEU Research- Source: Newsquawk