EUROPEAN EQUITIES UPDATE: Stocks move lower, Chemicals lag after poor results from Akzo Nobel & Givaudan

STOXX 600: -0.3%

• European bourses opened mostly lower and sentiment continued to deteriorate as the session progressed - downside which followed a mixed APAC session, where indices failed to sustain early upward momentum.


• The docket today has been fairly light thus far, with some focus on the ECB Bank Lending Survey, which highlighted that “corporate credit demand is weak but rose in Q2 and is expected to rise further in Q3” – indices were little moved.


• Traders will be mindful of the looming August 1 trade deadline between the EU and US. Reporting late Friday and Monday has intensified the possibility of a no-deal between the two regions; no additional sources seen today. (Please check the Newsquawk Primer “US-EU Trade Talks: Where we stand” on the headline feed). On trade, White House Press Secretary Leavitt said they could see more tariff letters for August 1st.


• Looking ahead, attention turns to the BoE’s Bailey, who is to speak with the Treasury Select Committee; ECB President Lagarde is also due in the afternoon, whilst Fed Powell will likely not comment on monetary policy amid the Fed's blackout period.

Sectors: Mostly negative

• European sectors hold a slight negative bias, with only a handful of industries managing to stay afloat.


• The Utilities sector takes the top spot, joined closely by Basic Resources and then Travel & Leisure to complete the top three. For the latter, Evoke is driving much of the upside; it reported a 5% revenue climb, as retail performance returns to growth.


• Chemicals sit at the foot of the pile, with two of the top 10 industry constituents reporting today; Givaudan reported weak sales and Akzo Nobel missed across its headline figures, alongside a cut to its FY Adj. EBITDA view.


• Tech is also on the backfoot today, thanks to the risk tone and also as European peers react to NXP Semiconductor results; the Co. is currently lower by 5.5% in pre-market trade after its outlook failed to impress investors; ASML (-1.5%), ASM International (-1.5%).

Majors: FTSE 100 -0.1%, CAC 40 -0.4%, SMI -0.4%

• The FTSE 100 is marginally lower today, but faring a little better vs peers seemingly thanks to gains across miners, which continue recent outperformance; Antofagasta (+4.7%) / Fresnillo (+3.6%). In terms of movers, Compass (+4.6%, excellent Q3 results and upgraded FY25 guidance), Centrica (+4%, Buys 15% stake in Sizewell with GBP 1.3bln funding), AstraZeneca (+0.2%, to invest USD 50bln in the US by 2030).


• The CAC 40 is posting modest losses; key stories today include: Sanofi (U/C, Acquires Vicebio for USD 1.15bln upfront), Safran (-0.6%, acquires Collins Aerospace). Outside of the CAC 40, Sartorius Stedim Biotech (-6.7%) sank at the open after the Co. reported mixed H1 results, with Net Income significantly missing expectations.


• The SMI is also lower and trading broadly in-line with European peers; Givaudan (-5%) moves lower after reporting a weak Sales figure, which the Co. said was affected due to the stronger CHF. Elsewhere, Julius Baer (-2.1%) is hampered following its H1 metrics, where it reported a 35% decline in Net Income, though AuM did beat expectations. Finally, Lindt (-5.5%) is in the red despite reporting strong H1 metrics and raising its FY sales guidance. Analysts have highlighted lower margins, and the recent rally in shares has dampened expectations for further upside.

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

• Futures are flat/mixed and ultimately trading on either side of the unchanged mark. The docket is void of any pertinent Tier 1 data releases (Richmond Fed Index is due), but earnings will pick up with the likes of Intuitive, Coca Cola, Lockheed Martin, Philip Morris, RTX, DR Horton, Northrop Gruman, Danaher, MSCI, and Pulte all set to report.


• Fed Chair Powell (voter) and Fed Governor Bowman (voter) will appear at the Fed's financial stability conference, though are not expected to make remarks on monetary policy or the economic outlook, given that the Fed is in blackout ahead of its July 30th confab.


• Interestingly, the Nasdaq 100 has gone 61 consecutive days without closing below its 20DMA average, the longest streak since 1999.

22 Jul 2025 - 09:55- Fixed IncomeEU Research- Source: Newsquawk