EUROPEAN EQUITIES UPDATE: Stocks mostly firmer whilst DAX and Euro Stoxx 50 outperform amid Siemens and ASML

STOXX 600: +0.4%

• European bourses hold a positive bias, with only a couple of indices residing in the red; there is hefty outperformance in the DAX 40 and Euro Stoxx 50 after constructive updates from heavyweights Siemens and ASML.


• Indices opened mixed/modestly firmer and sentiment gradually improved into the morning; indices reside at highs.

Sectors: Positive; Top: Tech, Industrials, Energy Bottom: Healthcare, Basic Resources, Retail

• European sectors hold a positive bias vs initially opening mixed.


• Tech is by far the clear outperforming, lifted by strength in ASML after it reiterated its 2030 sales outlook. Industrials is in second spot, buoyed by post-earning strength in Siemens.


• Healthcare resides at the foot of the pile, with Merck weighing on the sector. Basic Resources is also incrementally in negative territory, with underlying metals prices hit by the continued strength in the Dollar.

DAX 40: +1.3%

• The index is on a strong footing and outperforming vs peers, owing to strong results from Siemens (+7%), which has lifted its shares. The Co. beat on headline metrics, and proposed a FY dividend raise from the prior year. Deutsche Telekom (+2.5%) also gains after its results, albeit to a lesser degree; the Co. significantly beat on Adj. Net Income, whilst other metrics were fairly in-line.


• Merck (-2.5%) is found at the foot of the pile after the Co. reported generally strong headline results, but cut its FY Revenue to the lower half of its previously guided range.

Others: Euro Stoxx 50 +1.2%, FTSE 100 +0.1%, CAC 40 +0.7%

• The Euro Stoxx 50 is one of the better performers in Europe, thanks to gains in the aforementioned Siemens as well as strength in ASML (+5.3%). The Dutch chip-maker benefits after the Co. reaffirmed its 2030 sales outlook, and noted that “The annual semiconductor market growth rate is anticipated to be approximately 9% during the period 2025-2030”. Analysts at Bank of America maintained their Buy rating on the co. following this update.


• The FTSE 100 manages the remain afloat, but is underperforming vs peers; B&M European (+3.6%) benefits post-earnings, as does Insurance name Aviva (+3.3%).


• Outside of the FTSE 100, but remaining in the UK; luxury maker Burberry (+14%) soared at the cash open and continued to edge higher after its results beat expectations and after the CEO announced a cost savings programme. Burberry shares are down 40% YTD
  


• Luxury names in France initially opened on the backfoot, but sentiment gradually improved as Burberry shares rose to session highs; French peers such as LVMH (+0.6%), Hermes (+0.8%) both gain.

US Equity Futures: ES +0.1%, NQ +0.1%, RTY +0.4%

• Futures are modestly firmer across the board, but with slight outperformance in the RTY as it attempts to pare back the hefty losses seen in the prior session.


• Pre-market movers includes, Cisco (-3.5%) and the its guidance topped analyst expectations; analysts may have been looking for a stronger report, with the sales figure only incrementally topping expectations.

14 Nov 2024 - 09:55- Equities- Source: Newsquawk