EUROPEAN EQUITIES UPDATE: Stocks falter alongside hawkish remarks by ECB's Schnabel

STOXX 600: -0.8%.

• European equities trade on the backfoot. From a macro perspective, the main update for the region has come via hawkish comments by ECB's Schnabel who says she only sees limited room for further rate cuts, adding that the ECB should not go accommodative on rates.

Sectors: Mixed

• Sectors are mixed with outperformance in Personal Care, Drug and Grocery names, whilst a pullback in yields has benefitted the Real Estate sector and underlying prices have boosted Basic Resource names. To the downside, Tech stocks are pressured with SAP (-1.1%) a laggard within the group following a negative read across from US-listed Workday post-results. Elsewhere, it has been another tough session for Autos with Aston Martin (-4.9%) shares hit by news that it is to raise capital.

DAX -0.5%; FTSE 100 +0.2%; CAC -1.1%, FTSE MIB -0.8%, IBEX 35 -0.8%

• The CAC 40 is the regional laggard with the index falling victim to domestic politics as budgetary concerns weigh on sentiment.


• 
  Henkel (+2.6%) is top of the DAX following a broker upgrade at JP Morgan, whilst Real Estate names have been bolstered by 9-month results from Aroundtown (+6.1%).


• For the Eurozone banking sector, the European Commission Director-General for Competition has concluded its review of the BBVA (-1.5%)/Sabadell (-1.2%) transaction without raising any objections.


• For Scandi-watchers, Swedish Real Estate giant SBB (+6.1%) shares have been bolstered by an encouraging Q3 update.

US Equity Futures: ES -0.2%, NQ -0.4%, RTY +0.2%

• US equity futures are showing a modest reversal of yesterday's price action in which small-caps lagged peers. From a macro perspective, focus is very much on looking ahead to the day's raft of tier 1 US data points. The docket includes monthly and quarterly PCE metrics, the 2nd estimate of GDP, weekly claims data, durable goods and trade. The highlight will be the monthly PCE metrics with the core M/M rate expected to remain at 0.3%. As it stands, around 16bps of loosening is priced for the December meeting. In terms of stock-specific updates, Apple’s (-0.2% pre-market) iPhone sales within China were down 55.75% Y/Y in October (prev. -39.8% Y/Y), according to Reuters calculations. A US judge dismissed a shareholder lawsuit against Netflix (+0.6% pre-market) over subscriber growth forecasts, Reuters reports. Dell Technologies (-13% pre-market) shares are lower pre-market following soft guidance alongside Q3 results.

27 Nov 2024 - 10:05- EquitiesEU Research- Source: Newsquawk