EUROPEAN EQUITIES UPDATE: Stocks are mixed, AAL LN +10% merges with TECK

STOXX 600: U/C

• European bourses opened modestly firmer across the board, but now display a mixed picture, though with nothing really behind the slip in sentiment.


• Docket for today has been relatively quiet, with only really French Industrial Output (slightly better than expected) on the schedule. More focus has been on the developments seen in French politics in the prior session, whereby PM Bayrou was ousted after losing a confidence vote. Given this was the expected outcome, the CAC 40 was little moved – but risk remains elevated as traders await the next steps from President Macron. Most likely, he will appoint a new PM, given Macron has made it clear that he has no intention of resigning ahead of his term ending around April 2027. (Please see the full Newsquawk analysis piece on the headline feed).


• Politics aside, for the Fed, the US Senate Banking panel is to vote on Miran's Fed nomination on September 10th, according to Bloomberg.

Sectors: Mixed

• European sectors opened with a strong positive bias, but as sentiment slipped, sectors are now mixed.


• Basic Resources tops the pile, boosted by gains in Anglo American (+10%); the Co. and Teck Resources have merged to create a USD 50bln mining giant; the merger is expected to yield USD 800mln in annual synergies. Elsewhere, Banks and Media complete the top three; for the latter, UMG (+2.2%) boosts the sector.


• Industrials are found right at the foot of the pile, joined by Healthcare and then Financial Services.

Movers:

• Commerzbank -1.5%; downgraded to Neutral from Overweight at JPMorgan.


• Deutz -5.2%; Resolves on 10% capital increase excl. pre-exemption rights; to increase share capital by 10%.


• Novartis -0.8%; Novartis will acquire Tourmaline Bio for USD 48/shr, valuing it at about USD 1.4bln.


• ABN AMRO U/C; Dutch Government plans to cut stake in ABN AMRO to approx. 20% (prev. 30.5%).

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

• Futures are very incrementally firmer across the board, continuing a similar theme seen in the prior session.


• Day ahead: From the US, the BLS payroll benchmark revisions report will be released. BofA expects a downward revision of 500k to 1mln, implying that payrolls as of March 2025 may have been overstated by 40k–85k per month on average over the April 2024–March 2025 period. BofA also highlights that revisions for April–December 2025, which matter most for the Fed, will only be available with the final benchmark in February 2026.


• Apple (AAPL) will be holding its Fall Event, where new iPhones are expected. JPMorgan notes that expectations have historically been for limited surprises from the fall iPhone launch event. Regarding Apple itself, expectations around the big-tech behemoth have been limited recently as it continues to seemingly fall behind in the AI race, with Meta continuing to nick some of its top AI talent.


• In a recent Morgan Stanley note, analysts write that they favour "Large Cap Healthcare" for a defensive hedge, citing a historically low P/E ratio.

09 Sep 2025 - 10:20- ForexEU Research- Source: Newsquawk