EUROPEAN EQUITIES UPDATE: Stocks edge lower in catalyst-thin trade

STOXX 600: -0.2%

• European bourses began the session entirely in the red and have continued to traverse the bottom end of today’s range throughout the morning. The pressure is seemingly a paring back of the prior day’s upside and as traders react to the poor performance on Wall St. seen in the prior session.


• The European specific docket has been exceptionally light today, and the schedule ahead does not pick up.

Sectors: Negative

• European sectors hold a strong negative bias, in-fitting with the pressure seen across the complex.


• There are only a handful of sectors in positive territory, and with the breadth to upside marginal; Healthcare incrementally tops the pile, followed closely by Autos and Travel & Leisure. Healthcare is pushed higher by gains in heavy-weight Novo Nordisk (+1.2%) amid reports the co. is to invest an additional BRL 500mln to expand a factory in Brazil.


• And in a turn of fortunes from the prior day, Basic Resources and Consumer Products both give back some of the strength seen on Monday.

Major Indices: FTSE 100 -0.6%, DAX U/C, CAC 40 -0.6%

• The FTSE 100 is one of the worst performers in Europe thus far, hampered by losses in mining names, which gives back some of the upside seen in yesterday’s session after a positive Chinese Politburo readout; Glencore (-1.9%), Antofagasta (-1.7%). Ashtead (-9.5%) bottoms the index after it reported its Q2 results after its results were generally poor, and unveiled its plans to move its primary listing to the US. For UK supermarkets, Kantar said UK grocery sales were up 2.5% in 4 weeks to December 1st; Tesco (+0.9%) benefits.


• The DAX 40 is essentially flat after beginning the session incrementally in negative territory. Allianz (-0.8%) is towards the foot of the pile despite the co. amending its dividend policy and raising its medium-term profit target aiming for a +7-9% annual earnings growth over the next three years (vs prev. target of +5-7%). SAP (-0.1%) is slightly lower in a read across to poor Oracle results; elsewhere, T-Mobile parent, Deutsche Telekom (-0.3%) edges slightly lower after the T-Mobile CEO said investors should be cautious as there is a lot of risk in the back half of the year.

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

• Futures are very slightly in negative territory, continuing the pressure seen in the prior session.


• In terms of pre-market movers, Oracle (-7%) dips after the co. missed on headline metrics and its forward guidance disappointed. Elsewhere, Eli Lilly (+0.7%) benefits after the co. announced a USD 15bln share repurchase programme after its prior USD 5bln facility was completed in Q4 2024.


• The US day ahead is very quiet, with focus on US Unit Labour Revisions and then a 3yr auction thereafter.

10 Dec 2024 - 09:55- EquitiesResearch Sheet- Source: Newsquawk