EUROPEAN EQUITIES UPDATE: Stocks a little firmer, BP/ LN gains post-earnings

STOXX 600: +0.3%

• European bourses opened broadly in modest positive territory, but have marginally slipped off best levels as the morning progressed.


• News flow recently has been very light, and we are still awaiting details regarding who US President Trump’s new Fed/BLS appointees will be, after one walked and the other got the boot.


• Pertinent trade updates have also slowed a touch today, but we did hear from an EU Official who said “already seeing implementation of EU-US framework trade deal” and confirmed the 15% rate applies on cars. The Official also highlighted that the alternative to a US deal would be an escalation of tariffs.


• On the data front, a few PMI metrics to keep markets busy: Spain (marginally beat), Italy (miss), France (revised lower), Germany (revised higher), EZ-wide metric (revised lower), UK (revised higher) – little follow-through to markets. On inflation, the accompanying commentary highlighted that “costs are rising at a pace that is the slowest in nine months and below the long-term average”. Thereafter, EZ Producer Prices moved higher, in line with expectations.

Sectors: Positive

• European sectors hold a strong positive bias, with only a handful of sectors residing in marginal negative territory.


• Food, Beverage and Tobacco tops the pile, with Diageo (the third largest weighting in the sector) popping at the open. Energy follows closely behind, as heavyweight BP benefits from strong results and as it initiates further cost reviews. (More details in the FTSE 100 section below).


• Consumer Products is found right at the foot of the pile, posting losses to a minimal magnitude; Utilities and Banks complete the bottom three.

Majors: DAX 40 +0.5%, FTSE 100 +0.3%

• The DAX 40 is modestly firmer today, performing about as well as peers. There have been a number of earnings from within the index today – DHL (+5.1%), Infineon (+4.7%) gain, whilst Fresenius Medical Care (-3.7%) is found at the foot of the pile, joined closely by Continental. In more detail, DHL beat on its EBIT metric, whilst Revenue was a little light – it also affirmed its guidance. Elsewhere, Infineon (+4.5%) beat on its Adj. EPS figure, Revenue was in-line, whilst other metrics were a little weak. As for outlook, the Co. guided its Q3 revenue in line with expectations. To the downside, Continental missed across its headline figures and trimmed its Adj. EBIT margin. Outside of the DAX 40, Hugo Boss (+7.4%) jumped at the open after it saw its Sales rise in Q2 and confirmed it will be raising prices to counter tariff impacts.


• The FTSE 100 also performs about as well as its peers. Quite a few earnings from within the index today; Smith & Nephew (+14.8%), Fresnillo (+10%), Diageo (+6%) and BP (+2%). Starting from the top, Smith & Nephew benefits after it reported strong results and announced a USD 500mln share buyback in H2’25. As for Fresnillo, it reported strong results, lifted its dividend and raised its gold production outlook. Alcohol name Diageo moves higher after its results, with particular focus on its cost-saving plans and FY26 guidance, and finally for energy-giant BP, the Co. benefits from very strong headline figures and a USD 750mln buyback announcement – it also launched a fresh business review.

US Equity Futures: ES +0.1%, NQ +0.1%, RTY +0.2%

• Futures are modestly higher across the board, with the RTY ever so slightly outperforming.


• The US Day sees international trade stats for June, where a surplus is expected after May's deficit. Canada's trade stats are also out. The Services ISM is expected to rise to 51.5 from 50.8. RCM/TIPP's economic optimism data is also due. The Atlanta Fed will update its GDPnow tracking estimate for Q3, which is currently modelling growth of 2.1%.


• Note, US President Trump will be on CNBC at 13:00BST/ 08:00EDT.

05 Aug 2025 - 10:20- EquitiesEU Research- Source: Newsquawk