EUROPEAN EQUITIES UPDATE: Stocks in Europe slip and US Liberation Day looms

STOXX 600: -1.1%

• European Bourses have begun the week lower ahead of month & quarter end, the looming April 2nd ‘Liberation Day’, and ongoing geopolitics.


• Over the weekend, US President Trump confirmed plans for broad reciprocal tariffs, including the 25% levy on all imported vehicles and parts, set for April 2nd. Trump is also said to be pushing for more aggressive tariff actions, including possible universal tariffs applying to most imports.


• In terms of geopolitics, Trump is reportedly becoming frustrated with Russian President Putin, and has threatened "secondary tariffs" on buyers of Russian oil if Putin refuses to agree to a ceasefire with Ukraine. Additionally, he threatened to bomb Iran if the country does not agree to negotiate a new nuclear deal.


• Ahead, markets are expecting national German CPI metrics following relatively mixed regional CPIs. Today's speakers slate include Norges Bank's Longva and Borsum, and Riksbank's Breman.

Sectors: Negative

• Sectors are broadly in the red, with Basic Resources at the bottom of the pile, and Autos following.


• Basic resources have failed to lift amid demand/growth concerns, despite gold prices surging to USD 3,100/oz for the first time. Chinese PMIs inched higher, though CapEco sees slower Chinese GDP growth in Q1, driven by weak services and a soft labour market.


• Specifically for energy, Wood Group (-25%) identified significant accounting adjustments and material weaknesses in its financial culture, and will delay FY24 results, potentially leading to a share suspension; it added that ongoing talks with Sidara could result in a cash offer for the company.


• For Autos, April 2nd remains the driver, with the sector in Europe down 1.5% at the time of writing, US Trade Adviser Navarro said auto tariffs could raise USD 100bln, with other tariffs generating USD 600bln annually. In stock specifics, Stellantis (-2%) remains the worst performer due to its exposure to Mexican and Canadian manufacturing. In contrast, Volkswagen posts the shallowest losses, with some desks noting that its Tennessee plant provides a buffer against the tariffs.


• In the consumer sector, Associated British Foods (-5%) announced that Primark’s Chief stepped down with immediate effect following a behavioral probe.


• In healthcare, Novo Nordisk's (+1%) STRIDE trial found Ozempic (1 mg) improved walking distance by 13% in adults with type 2 diabetes and symptomatic PAD, outperforming the placebo without treatment-related deaths.

US Equity Futures ES-0.8%, RTY-1.1%, NQ-1.2%

• US futures are entirely in the red, with the tech Heavy Nasdaq underperforming on reports that test samples for NVIDIA’s (-3%) GB300 may not be sent until the end of 2025, meaning it is likely that mass production will be delayed until next year. It was also reported that some large cloud customers are reportedly slowing down their spending on AI services through cloud providers such as Microsoft (MSFT), Google (GOOG) and Amazon (AMZN) as prices of AI drop, according to The Information.


• The US data docket is thin ahead of a big week for macro data, with only the Chicago PMI and Dallas Fed manufacturing surveys due today.

31 Mar 2025 - 10:00- ForexEU Research- Source: Newsquawk