EUROPEAN EQUITIES UPDATE: Stocks mostly lower, BARC LN loses court challenge re. motor finance

STOXX 600: -0.4%

• European bourses began the session entirely in the red and for the most part have resided in negative territory throughout the European morning, but have attempted to edge a little higher in recent trade, with some indices managing to climb incrementally into the green.


• EZ data today saw the release of the German Ifo metrics, which further confirmed the dire situation in Germany; figures which had little impact on the equities complex. The ZEW figures thereafter, painted a more optimistic picture, but again indices were little moved.

Sectors: Negative

• European sectors are almost entirely in the red, given the slip in risk sentiment in today’s session thus far.


• Tech is marginally in positive territory, alongside Consumer Products and Services; there does not seem to be a clear driver for the upside.


• Energy is the clear underperformer joined by Basic Resources, attributed to the losses seen in underlying commodity prices today.

European indices: FTSE 100 -0.7%, DAX 40 U/C, CAC 40 +0.1%

• The FTSE 100 is the worst performing index in Europe today, as traders trim their bets for more cuts in the coming year following today’s hot jobs reports, with particular focus in the wages components which surpassed the top end analyst expectations. In terms of stock specifics, Bunzl (-5.3%) finds itself at the foot of the pile, after the Co. noted of a slight impact on its 2024 profits due to persistent deflation. Elsewhere, mining/energy names are on the backfoot, given losses in underlying commodity prices.


• Barclays (BARC LN) has lost the UK court challenge re. motor finance; Barclays was attempting to appeal the ruling that it failed to fairly treat customers when purchasing a used car. A ruling which sparked immediate pressure in the likes of Barclays (BARC LN), Lloyds (LLOY LN) and Close Brothers Group (CBG LN).


• The DAX 40 is trading on either side of the unchanged mark, and with index-specific newsflow light today. As a reminder, in the prior session German Chancellor Scholz lost the no-confidence vote, paving the way for snap elections (as expected). Outside of the DAX 40, ThyssenKrupp Nucera (+6.8%) shot higher at the open after the co. reported a mixed set of results, with its EBIT Loss shallower than expected.


• Key broker moves; Deutsche Bank upgrades Airbus (+1.4%) and Safran (+1%).

US Equity Futures: ES -0.3%, NQ -0.1%, RTY -0.1%

• Futures are modestly in negative territory, in-fitting with the losses seen in Europe and the general risk tone; a slight turn in fortunes in comparison to the gains seen in the prior session.


• The North American day sees the release of US retail sales, which are expected to rise +0.5% M/M in November (see below for primer). US manufacturing output and industrial production are both expected to rise in November. The NAHB’s housing market index is seen rising 1 point in December to 47.

17 Dec 2024 - 10:20- EquitiesData- Source: Newsquawk