EUROPEAN EQUITIES UPDATE: Stocks benefit from Iran-Israel ceasefire efforts, but no progress yet

STOXX 600: +0.2%

• European bourses are firmer across the board, amid the constructive risk tone. The improving sentiment seemingly stems from efforts to broker a ceasefire between Israel/Iran (no progress yet).


• To briefly recap those ceasefire efforts, US President Trump said that many calls and meetings are taking place for a peace deal between Iran and Israel. It is worth pointing out that an Israeli Official told Axios that Israel was not interested in a ceasefire, as it had not yet destroyed Iran’s nuclear programme.


• Most recently, Iran's Foreign Ministry Spokesperson said parliament is preparing a bill to leave the Nuclear Non-Proliferation Treaty – but did say it was opposed to weapons of mass destruction.


• Back to Europe, updates today have been light. On the data front, Italian CPI (Final) were revised lower; as for speakers, ECB Nagel said “it is not sensible to signal either a rate pause or cut, given the exceptional uncertainty”.

Sectors: Mixed

• European sectors are mixed and with a fairly wide breadth today.


• Travel & Leisure is by far the clear outperformer today, with sentiment boosted by upside in Entain. The Co. upped its FY25 guidance (more details below).


• Healthcare is found right at the bottom of the pile, and is the clear underperformer today. Losses today stem from Novo Nordisk (-1.5%) amid reports that Eli Lilly’s experimental weight loss drug showed strong data. Elsewhere, Roche (-2%) moves lower after it provided an update on its Elevidys treatment; there were two cases of fatal acute liver failure.

Majors: FTSE 100 +0.2%, CAC 40 +0.5%

• The FTSE 100 is modestly firmer but not quite performing as well as peers. In terms of key movers; Entain (+8.2%) tops the pile after the Co. lifted its FY25 guidance. More broadly, Energy names opened higher given the weekend geopolitical escalations between Israel/Iran. Do note that whilst crude futures currently trade flat/lower on the session, energy stocks still manage to hold afloat. Outside of the FTSE 100, Metro Bank (+12.5%) soars amid reports it received a takeover approach from private equity firm Pollen Street Capital.


• The CAC 40 is firmer today, performing about as well as peers. Kering (+9.5%) is by far the clear outperformer today, amid reports that it is to appoint Renault’s departing CEO, de Meo. Citi analysts write that “he is perceived to have driven Renault’s turnaround”, but remained cautious suggesting that Luxury brands have a history of complex and costly turnaround executions. Also for Renault (-7.1%) it slipped at the open after it confirmed the departure of its CEO and amid reports that Nissan is to sell a further stake in the French-automaker.

US Equity Futures: ES +0.5%, NQ +0.4%, RTY +0.5%

• Futures are modestly firmer across the board, attempting to pare back some of the hefty Israel-Iran induced losses in the prior session; upside which also comes amid a broadly positive risk tone.


• Docket ahead remains very light for the remainder of the day, with focus ultimately on US NY Fed Manufacturing and commentary via US President Trump, who is set to appear a few times throughout the day.

16 Jun 2025 - 10:00- ForexGeopolitical- Source: Newsquawk