EUROPEAN EQUITIES UPDATE: Stocks mixed in quiet newsflow, STLAM IM upgraded at Jefferies, BAB LN +11% after results

STOXX 600: +0.2%

• European bourses opened mostly and modestly firmer and have traded choppily throughout the morning. More recently, some selling pressure has been seen taking a few indices modestly into the red.


• Geopolitical updates have been fairly limited today, with both Iran-Israel seemingly respecting the ceasefire so far. On the trade front, reports suggest the Trump team is close to announcing several deals, and highlighted progress on Japan, South Korea and Vietnam.


• Traders now look for updates out of the Hague, where NATO leaders are meeting to discuss ongoing support for Ukraine amid Russia’s war and push for higher defence spending, with the US pressing allies to raise budgets to 5% of GDP. Right now, there are some clear differences in defence spending across Europe – notably Spain, which said it will stick with its current plans of 2.1% of GDP on military spending.


• US President Trump has already spoken at the summit, on Article 5, he said "we are with them all the way". Also in focus will be on if there will be any mention of Russia; elsewhere, US President Trump is set to meet his Ukrainian counterpart on the sidelines of the summit.


• Docket has been very quiet today; French Consumer Confidence a little shy of expectations; Spanish GDP Finals unrevised.

Sectors: Positive

• European sectors hold a positive bias, and aside from the top performer, the breadth of the market is fairly narrow.


• Autos is the clear outperformer today, lifted by strength in Stellantis (+4.5%) after the co. received an upgrade at Jefferies. Analysts write that data suggests the recent earnings slide is about to turn, and believes that operating issues are fixable. Elsewhere, Porsche AG (U/C) was initiated Sector Perform at RBC.


• Telecoms is found at the foot of the pile, joined closely by Food Beverage & Tobacco; though losses which are modest by nature.

Majors: FTSE 100 +0.2%, CAC 40 +0.1%

• The FTSE 100 is modestly firmer and performing about as well as peers. In terms of stock specifics; Babcock (+11%) tops the index after it reported strong FY25 results and announced a GBP 200mln share buyback – the Co. also upgraded its guidance, targeting op. margin of at least 9% (prev. 8%). Aviva’s (+0.5%) investment arm is seeking a partner to raise about EUR 150mln to expand its Spanish rental housing portfolio, via Bloomberg. Elsewhere, WPP (-1.2%) is pressured after receiving a downgrade at Barclays.

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

• Futures are incrementally lower/flat, taking a breather from the hefty upsides seen on Tuesday, which saw the NDX gain 1.5%.


• Pre-market movers; FedEx (-5.9%) moves lower after it guided Q1 adj. EPS below expectations, citing tariff uncertainty and weak demand. BlackBerry (+8.5%) gains after reporting better-than-expected Q1 results and raised guidance.


• The US Day sees the release of several housing-related data points. In central banks, the Fed will hold an open meeting on its supplementary leverage ratio (SLR) standards; policymakers will discuss easing the SLR rules for large banks, aiming to ease capital requirements on safe assets and support lending and Treasury market functioning, under its new regulatory chief, Governor Michelle Bowman. Fed Chair Powell will deliver his semi-annual testimony to the Senate, which will largely be a copy-and-paste of his Tuesday testimony to the House.

25 Jun 2025 - 10:20- ForexGeopolitical- Source: Newsquawk