EUROPEAN EQUITIES UPDATE: Negative trade in Europe but US futures lifted as China refrains from immediate retaliation

STOXX 600: -2.9%

• European bourses are entirely in the red, but off worst levels after sentiment improved around the European cash open which coincided with commentary from China’s Foreign Ministry.


• On that, the Ministry's remarks were punchy, saying it “will fight to the end”; a White Paper released at the same time said China is “willing to communicate with the US”. Optimism may stem from the fact that China steered clear from retaliation (for now) to the latest Trump levies on the region.


• To recap those tariffs, 104% tariff on China took effect from 12:00 EDT/05:00 BST. Trump also said they have a lot of countries wanting to make a deal and noted that the tariff situation is a good situation.


• In terms of the day so far; there have been some appearances from ECB speakers including Escriva, Knot, Villeory, and Rehn, though their remarks did not impact price action. Further, a Reuters report suggested that the ECB thinks EZ growth will take a bigger hit from Trump tariffs, than initially thought; an initial ECB estimate of 50bps hit to growth in the first year under revision.

Sectors: Negative

• European sectors are in negative territory, but display a more improved picture than opening levels.


• Autos takes the top spot, joined closely by Media and Retail.


• Healthcare is by far the clear laggard as markets digest the latest commentary from US President Trump who said that he will be announcing tariffs on pharmaceuticals soon. Energy is also amongst the underperformers, as underlying oil prices remain pressured.

Others: FTSE 100 -2.6%, DAX 40 -2.7%

• The FTSE 100 is on the backfoot with losses to a similar degree as peers – stock specifics have been light for the index today. Airtel Africa (+2.3%) tops the pile after receiving an upgrade at JP Morgan; Rio Tinto (-0.9%) moves lower after being downgraded at Morgan Stanley, citing overvaluation. UK Pharma names such as GSK (-4.8%) and AstraZeneca (-5.9%) sit right at the bottom of the index, as markets digest recent commentary via US President Trump who said tariffs on pharmaceuticals are coming soon.

US Equity Futures: ES +0.3%, NQ +0.6%, RTY +0.2%

• Futures are mixed/flat in what has been a choppy morning thus far. A slight pick-up in sentiment was seen around the European cash open, which coincided with a readout from the Chinese Foreign Ministry; it provided some punchy rhetoric but steered clear from announcing any fresh retaliation to Trump’s latest tariffs.


• Day Ahead: US President Trump is to sign executive orders on Wednesday at 14:30EDT/19:30BST. There is a WTO meeting on goods trade occurring today, where Trump’s tariffs are likely to be raised. Today’s data slate includes weekly MBA mortgage applications data, wholesale sales data for February. In central banks, the FOMC minutes will be released. On the speakers’ docket: Fed’s Barkin (2027 voter).

09 Apr 2025 - 10:15- ForexEU Research- Source: Newsquawk