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.

06 Aug 2025 - 10:15- EquitiesEU Research- Source: Newsquawk