EUROPEAN EQUITIES UPDATE: Stocks modestly lower in holiday-thinned conditions

STOXX 600: -0.1%

• European bourses are broadly modestly lower across the board and with price action fairly muted, given parts of Europe are off today on account of Whit Monday. On holiday: Switzerland, Norway, Hungary, Greece & Cyprus.


• Trade updates over the weekend have been non-incremental aside from US President Trump suggesting they are very far advanced on a China deal ahead of high-level talks in London on Monday. On which, the US and China will resume trade talks in London, focusing on rare-earth minerals and advanced technology, aiming to ease tensions following a recent phone call between Presidents Trump and Xi, AP reports.


• Docket today has been and will continue to remain very light; only ECB’s Elderson is due. Though, focus will also be on a speech from NATO Secretary General Rutte at 15:45 BST, where he is reportedly to call for a 400% increase in air and missile defence spending.

Sectors: Mixed

• European sectors mixed and with the breadth of the market exceptionally narrow, given the holiday-thinned conditions for some parts of Europe.


• Real Estate leads given the relatively lower yield environment in Europe; Travel & Leisure follows closely behind.


• Towards the bottom of the pile is Technology, amid the subdued risk environment in Europe, whilst Banks and Industrials follow behind.


• On EU-China relations; Autos are little moved on commentary via the Chinese Ministry of Commerce, which said it is willing to establish a “green channel” for export license applications – it hopes the EU will also take reciprocal measures to promote trade.

Others: FTSE 100 -0.1%

• The FTSE 100 is a little lower today, trading similarly to European peers. For the UK more broadly, UK Chancellor Reeves is to announce a transformative GBP 86bln in the Spending Review to turbo-charge the fastest growing sectors. As for stock specifics; Anglo American (+0.2%, is set to begin the formal sale process for its 85% stake in De Beers, via Bloomberg), Rio Tinto (+0.1%, is seeking a multibillion-dollar government bailout for its Tomago aluminium smelter amid rising energy costs, AFR reports). Outside of the index but for AlphaWeave, Co. shares soar 22% after Qualcomm agrees a takeover purchase of 183p/shr.


• Other key stories: Porsche SE reportedly considering moving final assembly to US, but was pushed back by a spokesperson. For BNP Paribas, it is to cut 200 branches by the end of 2026 to kick off retail revamp, via Bloomberg.

US Equity Futures: ES +0.1%, NQ U/C, RTY +0.6%

• Futures are mixed with the ES/NQ ultimately trading on either side of the unchanged mark, ahead of what is a very quiet day in terms of scheduled events. The RTY is the clear outperformer today, building on the post-NFP upside seen in the prior session.


• US Employment Trends for May, and Wholesale Sales data for April are due. NOTE: The Fed is now on blackout ahead of its June 18th confab.


• Citi raises S&P 500 Y/E price target to 6300 (prev. exp. 5800) (prev. close 6000)

09 Jun 2025 - 09:50- ForexEU Research- Source: Newsquawk