EUROPEAN EQUITIES UPDATE: Stocks opened mixed but now hold a downward bias as the risk tone dips

STOXX 600: -0.2%

• European bourses opened modestly mixed and on either side of the unchanged mark; since, price action has featured a slight downward bias, as the general risk tone gradually deteriorated.


• Fresh macro/trade updates have been relatively light today; focus is on White House economic adviser Hassett, who said the administration has more than 20-25 deals on the table with deals close to being finalised and when President Trump returns, he will announce the next deal, according to a Fox interview.


• The data docket has included; final German/Spanish inflation metrics, which were unrevised. From an EU perspective, focus will be on commentary from ECB’s Cipollone in the afternoon.


• Goldman Sachs lifts its Stoxx 600 target for the next 12-months to 570 (prev. 520).


• Barclays raises its 2025 year-end price target for STOXX 600 to 540 (prev. 490, currently 545.09).


• Barclays European Equity Strategy downgrades Consumer Staples to Underweight; upgrades Consumer Discretionary to Market Weight (prev. Underweight).

Sectors: Mixed

• European sectors opened mixed and with no clear theme or bias, and with the breadth of the market fairly narrow.


• Real Estate takes the top spot, joined closely by Telecoms and then Utilities to complete the top three.


• Consumer Products sits at the foot of the pile, largely driven by losses in Compass (-3.5%) – the Co. reported a slight earnings beat and confirmed its guidance. Elsewhere, Burberry (+6.7%) jumped at the open after it reported better-than-expected results, with China figures also topping expectations; the Co. also said its cost-saving measures may lead to job cuts of around 1,700 people.


• Autos sit towards the foot of the pile, driven by post-earning weakness in Daimler Truck (-1.1%). The Co. marginally topped on its Adj. EBIT figure but cut its Op. Profit forecast, citing North American uncertainty. Elsewhere, Porsche SE (+0.4%) is a little firmer after the Co. reported slightly better than expected results.

Individual movers:

• GSK (+0.6%) is to purchase Boston Pharmaceutical unit for USD 2bln; will pay USD 1.2bln upfront and USD 800mln in milestone payments.


• Hapag Lloyd (+4.5%) beat on its Q1 Revenue figure and affirmed its guidance.


• Alstom (-16%) sees softer cash flow after reporting a beat on its Q1 results.


• ABN AMRO (+8%) reported better-than-expected Net Profit, whilst other figures were in-line.

US Equity Futures: ES U/C, NQ U/C, RTY -0.2%

• Futures are flat/modestly lower, attempting to hold onto the gains seen yesterday, strength which was in-part spurred by the plethora of deals announced/reported on during the Saudi event.


• The data releases docket is light today, with an absence of Tier 1 releases. Weekly US MBA mortgage applications data. On the speakers' slate, remarks are due today from the Fed's Waller (Voter, Dove), Fed Vice Chair Jefferson and Fed's Daly (2027 voter).

14 May 2025 - 09:55- ForexEU Research- Source: Newsquawk