EUROPEAN EQUITIES UPDATE: Stocks rangebound ahead of NVIDIA & FOMC Minutes

STOXX 600: +0.1%

• European bourses are trading on either side of the unchanged mark, with trade directionless as traders remain cautious in the lead up to FOMC Minutes and NVIDIA results thereafter.


• The docket today has included; German Import Prices (missed expectations), German Unemployment (Change topped expectations whilst the Rate remained steady), ECB Survey of Consumer Expectations (next 12 month inflation seen higher whilst growth expectations were dire).


• European-specific updates remain light for the rest of the day; BoE's Pill is set to speak in the afternoon, but will be a text release of a speech given last week.

Sectors: Mixed

• European sectors are mixed, in-fitting with the indecisive risk-tone.


• Real Estate leads, with UK homebuilders boosting the sectors (details below). Industrials follows closely behind, and Energy completes the top three.


• Retail posts very narrow losses, with pressure stemming from post-earning downside in Kingfisher (-2.9%). The Co. reported better-than-expected results and affirmed its guidance – it is not entirely clear the reason for today’s downside.

Key Stories: FTSE 100 +0.2%, DAX 40 +0.1%

• UK homebuilders are broadly on a firmer footing today, with sentiment in the sector boosted after reports suggested the UK Government will ease planning hurdles for small housebuilders to support PM Starmer’s goal of 1.5mln new homes.


• Pirelli (+0.1%) is unreactive on reports via Bloomberg which suggested that the US has warned the Co. on possible sale restrictions amid concerns related to its Chinese investors.


• As for Banking; Spain’s government will conduct a further review of BBVA’s (+2.4%) hostile takeover bid for Banco Sabadell (+0.8%). Elsewhere of note for UniCredit (+1.5%), La Repubblica reports that the Italian government is now ready to review its golden power but there still remains doubts regarding loans and Russia.


• In terms of the latest management changes; Stellantis (+0.3%) announced that Filosa is to be the next CEO of the Co.; Elsewhere, Tempelman has been named the new CEO of Signify (+0.8%).

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

• Futures are very modestly in negative territory, taking a breather following the hefty gains seen in the prior session.


• NVIDIA currently trades flat in the pre-market ahead of its much-anticipated earnings after-hours. While attention will be on the quarterly figures and guidance, participants will be cognizant of what is said about China-US relations, chip bans, and the new China chip.


• The day ahead will also include the US Richmond Fed Index, Dallas Survey and the FOMC Minutes.

28 May 2025 - 09:55- Fixed IncomeEU Research- Source: Newswires