EUROPEAN EQUITIES UPDATE: Stocks modestly higher, NOVOB DC falls after Q2 metrics

STOXX 600: +0.2%

European bourses opened modestly firmer across the board and have traded at elevated levels throughout the morning. However, some downticks have been seen in recent trade.
Fresh trade updates have been very light overnight/today, and markets are still awaiting the replacements for Fed's Kugler and the BLS Chief; more focus on a busy earnings slate (discussed below). Elsewhere, an interesting report via Bloomberg suggested that Germany is reading a EUR 100bln fund to invest in strategic assets, as it aims to secure sectors such as defence, critical raw materials and energy.
Docket today has included German Industrial Orders (a little below expectations), EZ Construction PMI (printed a bit below the prior), UK PMIs (significantly missed expectations), EZ Retail Sales were mixed; M/M missed expectations whilst Y/Y was hotter-than-expected. No move in the equities complex following any of these releases.

Sectors: Positive

European sectors hold a strong positive bias, with only really two clear underperformers today.
Healthcare sits right at the foot of the pile, dragged down by post-earning losses in Novo Nordisk. The Danish Ozempic-maker initially opened higher after its Q2 metrics, but then gradually dipped into the red. Most headline metrics were weaker than expected, but Wegovy sales marginally beat expectations. As a reminder, shares sank 20% last week as it reacted to a guidance cut, citing weaker Wegovy growth. Elsewhere, Optimised Personal Care is pressured after Beiersdorf cut FY guidance.
Real Estate is towards the top of the pile, lifted by post-earning upside in Vonovia. Banks are also in the green, with a slew of earnings from within the sector; Commerzbank (-0.3%) reported in-line to marginal beats across headline metrics and raised its FY25 Net Income guidance – it also applied a EUR 1bln share buyback. ABN AMRO (-6%) moves lower after missing on Q2 NII, where it also highlighted a 6mln impairment charge. As for Italian banks, Banco BPM (+1.3%) reported strong results thanks to the Anima acquisition; BMPS (+3%) also reported strong NII and lifted its FY Total Revenue guidance a touch; Bper Banca (+1.9%) saw its profits jump and also raised guidance.
Basic Resources was initially pressured and is the clear underperformer, pressured by losses in Glencore (-3%). The metal giant saw its H1 profits dip and opted against moving its listing to the US.

Majors: DAX 40 +0.4%, FTSE 100 +0.3%

The DAX 40 is firmer today with gains to a similar magnitude as peers. A slew of results for the index today, starting with Vonovia (+5%), the real estate co. reported decent metrics and raised its FY Adj. EBT guidance. Also towards the top of the pile resides Fresenius (+1%), where headline metrics were a little mixed, though FY Organic Revenue growth guidance was lifted. It is worth highlighting that Fresenius Medical Care (-1.4%) moves lower after Fresenius said it will sell shares in the Co. to maintain its stake of around 28.6%. Elsewhere, Beiersdorf (-9%) is the clear underperformer today, dragged after the Co. cut its guidance for the FY; Zalando (-5%) initially opened higher but reversed – overall metrics were quite strong.

US Equity Futures: ES +0.4%, NQ +0.5%, RTY +0.6%

Futures are firmer across the board, with the RTY marginally outperforming vs peers.
AMD is currently lower by 5% in pre-market trade after Q2 sales beat estimates, but adj. EPS missed, and it flagged uncertainty over sales of its Instinct MI308 AI chip in China, complicating its otherwise upbeat outlook.
The US day sees the release of weekly MBA mortgage applications data. Today's speakers include: Fed's Collins (2025 voter), Fed's Cook (voter), and Fed's Daly (2027). President Trump is to make an announcement at 16.30 EDT/21:30 BST at the Oval Office.