EUROPEAN EQUITIES UPDATE: Stocks grind higher as Trump exempts smartphones/electronics from reciprocal tariffs

STOXX 600: +2.2%

• European bourses are entirely in the green, following a mostly positive APAC session as traders react to the latest trade-related updates.


• To break down those updates; the US “exempted” a number of electronic-related devices from reciprocal tariffs. However, US President Trump posted on Sunday that there was no tariff exception announced on Friday and that these products are subject to the existing 20% fentanyl tariffs and are just moving to a different tariff bucket. The President added that a tariff rate for semiconductors will be announced over the week.


• This has helped to lift sentiment across the equities complex. Price action today has been fairly rangebound, with the Euro Stoxx 50 opening higher by around 2% and has been trading sideways at highs throughout the morning.


• The EZ docket has been exceptionally quiet today and is unlikely to pick up later in the day. The focus will be on a potential readout from a meeting between EU Trade Commissioner Sefcovic and US officials; several Fed speakers and the NY Fed SCE are also due. LVMH earnings are due after Monday's close.


• Goldman Sachs cuts Stoxx 600 forecast for next 12 months to 520 (prev. 570, current 497.50)


• Barclays European Equity Strategy: Quality stocks upgraded to positive; Value stocks downgraded to neutral from positive.

Sectors: Positive

• European sectors hold a strong positive bias, in fitting with the risk tone; some of the sectoral movers today are attributed to the weekend’s tariff updates.


• Tech is one of the best-performing sectors today, lifted by a number of semiconductor names after US President Trump’s administration exempted items from reciprocal tariffs including smartphones, storage devices and some other electronics. The likes of Infineon (+1%) and ASML (+3%) both gain.


• Pharma stocks are also broadly higher on the latest Trump updates, with Commerce Secretary Lutnick suggesting that pharmaceutical tariffs could be coming in the next month or two.

Others: FTSE 100 +1.9%, DAX 40 +2.4%, CAC 40 +2%

• The FTSE 100 is firmer today and posting gains to a similar magnitude as peers; currently trading around 8,110. Stock specifics for the index have been relatively light today; banking names are broadly stronger, with mining names also benefiting from the risk tone. Outside of the UK’s top index; Wood Group (+10.2%) jumped at the open after the Co. received a fresh GBP 242mln takeover from Dubai’s Sidara.


• At a stock-specific level; BNP Paribas (+4.2%) said it expects to complete the purchase of Axa Investment Managers in July – BNP said it expects a -35bps impact on its CET1 ratio. Elsewhere, Ageas (+2.4%) has acquired Esure for GBP 1.295bln.

US Equity Futures: ES +1.4%, NQ +1.8%, RTY +0.6%

• Futures are entirely in the green, benefiting from the risk tone as traders digest the latest Trump tariff updates.


• In JPM’s latest Equity Strategy, analysts write that the current volatility is not done yet – but continue to see the Bank being buyers of equities at some point in the second half of the year. Although for now, analysts believe trade uncertainty will keep them “light on equity risk”.


• In the pre-market; Apple (+5%) amongst a number of other large-cap tech stocks are moving higher after Trump’s latest electronics-related “exemptions”.


• Citigroup downgrades US equities to Neutral from Overweight; upgrades Japanese equities to Overweight from Underweight; downgrades EM equities to Underweight from Neutral.

14 Apr 2025 - 09:50- EquitiesEU Research- Source: Newsquawk