EUROPEAN EQUITIES UPDATE: Stocks generally firmer in quiet newsflow; MUV2 GY lifts guidance

STOXX 600: -0.1%

• European bourses began the European session on a modestly mixed footing, but soon after the cash open then lifted to session highs to display a mostly positive picture in Europe. Although the recent strength has cooled a touch, and now reside just off best levels.


• The EZ specific day has been quiet, aside from a few ECB speakers who largely stuck to the President’s rhetoric yesterday.


• Traders will be keeping a keen eye out for updates out of France, particularly on President’s Macron who is expected to announce a new Prime Minister. Recent reporting has noted that Francois Bayrou has been in a meeting with the President, Eurasia Group's Mujtaba Rahman is of the belief that it will be him.

Sectors: Mixed

• European sectors are mixed vs initially opening with a slight negative bias.


• Autos is towards the top of the pile, continuing to build on the gains seen in the prior session. Insurance follows closely behind, buoyed by gains in Swiss Re and Munich Re.


• Healthcare is the laggard in today’s session, seemingly hampered by broad based losses within the sector; Novo Nordisk is off by around 3%, despite the lack of pertinent newsflow. Basic Resources is also on the backfoot, given the losses in underlying metals prices.

European indices DAX 40 +0.4%, FTSE 100 +0.2%, SMI +0.1%

• The DAX 40 on a firmer footing and is one the better performers in Europe today. Munich Re (+4.6%) tops the pile after it announced a profit target and insurance rev. target above analyst expectations. Daimler Truck (+1.4%) is a little firmer today after the Co. claimed a bankrupt trucking company owes it about USD 139mln.


• The FTSE 100 is on a firmer footing, after initial underperformance as traders digested the UK's GDP report, which was softer across the board; Services showed no growth whilst Production and Construction fell in the period. FTSE 100-specific updates have been light.


• In Switzerland, the SMI is trading round flat and ultimately underperforming vs peers. After posting modest gains in the prior session. Swiss Re (+2.7%) gains in today’s session after it announced its 2025 targets and aims for a dividend per share growth of more than 7% a year over the next three years.

US Equity Futures: ES +0.2%, NQ +0.5%, RTY +0.2%

• Futures are entirely in the green, with clear outperformance in the tech-heavy NQ after Broadcom (+14%) shoots higher following a strong earnings report.


• Broadcom beat on profit and raised its quarterly dividend by 11%; the co. also provided upbeat commentary regarding AI opportunities ahead.


• The North American day sees the release of US import and export prices for November (both expected to fall -0.2% M/M). Other than that, the docket is thin.

13 Dec 2024 - 10:00- EquitiesData- Source: Newsquawk