EUROPEAN EQUITIES UPDATE: Stocks mixed as traders await US CPI

STOXX 600: U/C

• European bourses opened almost entirely in the red, but now display more of a mixed picture as sentiment gradually improves in the complex. Price action has been modest in nature, with traders mindful of the looming US CPI.


• Ahead of the cash open, Reuters reported that China's top policymakers are considering allowing the Yuan to weaken in 2025 as Trump tariffs loom; this sparked some slight pressure in futures, but with magnitudes modest in nature.

Sectors: Mixed

• European sectors opened with a strong negative bias, but sentiment has improved a touch as the morning progressed to display a mixed picture.


• The breadth to the upside is fairly narrow; Optimised Personal Care tops the pile alongside Media, the latter buoyed by strength in Publicis after receiving a broker upgrade at JPMorgan.


• Retail is by far and away the clear underperformer in Europe, hit by a double whammy of losses from Inditex and Zalando. The former dragged by poor 9m results, whilst the latter targets an M&A deal.

Others: FTSE 100 -0.2%, DAX 40 +0.1%, IBEX 35 -1%

• The FTSE 100 is on the backfoot, with mining heavyweights largely doing much of the pulling, given the weakness in underlying metals prices in today’s session; Glencore (-0.9%), Anglo American (-0.9%). Ashtead (-4.6%) continues to add to the losses seen in the prior day, after it cut guidance; a downgrade at Goldman Sachs is also not helping. Towards the top of the pile, Reckitt (+1.1%) gains after it received an upgrade at HSBC. Finally, British American Tobacco (+0.4%) is relatively unmoved by its trading statement, where it confirmed FY24 delivery was in line with guidance.


• The DAX 40 is incrementally firmer; Adidas (-1.8%) slips after tax authorities raided several Adidas locations, including its HQ in Germany; Adidas told Bloomberg that it had been in contact with authorities for several years, and is providing the relevant documents. Elsewhere, Zalando (-6.8%) sank at the open after the co. offered to buy About You for EUR 6.50/shr.


• The IBEX 35 is the worst-performing index in Europe thus far, with the index hampered by losses in Zara-owner, Inditex (-5.9%). The Co. reported its 9m results, where it missed across the board, but did reaffirm its guidance.

US Equity Futures: ES +0.1%, NQ +0.2%, RTY U/C

• Futures are mixed, with the NQ outperforming slightly, attempting to pare back some of the losses seen in the prior session.


• In terms of pre-market movers; GE Vernova (-2.8%) slips after its results, where it narrowed its FY24 adj. EBITDA outlook. Elsewhere, according to The Information Google (+0.4%) reportedly asked the FTC to block Microsoft’s exclusive cloud deal with OpenAI.


• Day Ahead: The highlight is the US CPI data for November, which will help shape expectations over near-term Fed policy. Across the Northern border, The Bank of Canada is expected to cut rates by 50bps, but there are risks of a smaller 25bps reduction.

11 Dec 2024 - 09:55- EquitiesData- Source: Newswires