EUROPEAN EQUITIES UPDATE: Sentiment in Europe slips in quiet newsflow

STOXX 600: -0.3%

• European bourses began the session on a mixed/flat footing, and initially lacked any firm direction.
• Soon after the cash open, sentiment improved, however, this upside quickly dissipated to show a mostly negative picture across Europe.
• The docket today has been, and will continue to remain, exceptionally quiet. The data schedule is void of any Tier 1 data, but focus will ultimately lie on ECB’s Lagarde later on.

Sectors: Negative

• Europe sectors hold a strong negative bias, with only a couple of sectors in positive territory.
• Basic Resources tops the pile, benefiting from strength in underlying metals prices.
• Real Estate & Tech are found at the foot of the pile, hampered by the relatively high yield environment.

Others: FTSE 100 +0.1%, CAC 40 -0.3%

• A modestly firmer session for the FTSE 100 and faring a little better than peers, largely attributed to gains across mining names which benefit from underlying strength in metals prices; Anglo American (+1.1%), Rio Tinto (+1%). Melrose (+8%) tops the pile given after it reaffirmed its FY guidance.
• The CAC 40 is slightly firmer/flat with stock specifics for the index light today. Luxury names are incrementally in the green, potentially benefiting from mostly positive price action in China overnight and a sector upgrade at Barclays. Kering (+0.5%) benefits amid reports that it may appoint Balenciaga CEO Charbit to lead its YSL unit.

US Equity Futures: ES U/C, NQ +0.3%, RTY +0.2%

• Futures are mixed, with slight outperformance in the tech-heavy NQ, attempting to pare back some of the hefty losses in the prior session; NVIDIA earnings are due on Wednesday.
• In terms of stock specifics, AI stocks such as NVIDIA, Oracle and Vertiv received a positive mention in Barron’s; it noted that AI's long-term potential remains strong despite rising costs.
• The docket for today is very thin, with no notable Tier 1 data due; but Fed’s Goolsbee is set to speak.