EUROPEAN EQUITIES UPDATE: Stocks trade modestly higher, SHEL LN has "no intention" of making offer for BP

STOXX 600: +0.3%

• European bourses are generally modestly firmer across the board, following a mixed and choppy APAC session overnight. Though it is worth noting that price action (aside from the DAX 40) has been quite choppy and within a tight range so far.


• EZ docket and geopolitical updates have been lacking today; more focus on overnight reports that Trump is looking to bring forward his announcement of Fed Chair Powell’s replacement.

Sectors: Positive

• European sectors hold a positive bias, in-fitting with the broadly positive mood in European indices.


• Basic Resources takes the top spot, lifted by strength in metals prices following positive commentary from Chinese Premier Li and the State Planner; the latter said that with policy implementation and introduction, they are confident in minimising adverse effects from external shocks.


• Retail is found in the second spot, buoyed by post-earning strength in H&M (+5.2%). The Co. reported a slight beat on Op Profit whilst Revenue was a touch light in Q2; the Swedish retailer did highlight that negative external factors that increased the cost of purchasing in H1 are turning positive in H2.


• Autos marginally underperforms, joined closely by Consumer Products and Services.

Others: FTSE 100 +0.1%, DAX 40 +0.7%

• The FTSE 100 is modestly firmer today and trading similarly to European peers. The key story for the index today has been for two oil giants, BP and Shell. The latter is reported to be in early talks with BP, according to the WSJ. Although Shell unequivocally said it has no intention of making an offer for BP. This publication triggers Rule 2.8 of the UK Takeover Code, which therefore means Shell is prohibited from making an unsolicited offer for BP for a six-month period.

US Equity Futures: ES +0.3%, NQ +0.2%, RTY +0.3%

• Futures are modestly higher across the board, as traders await a slew of US data and Fed speak, futures benefitting on the potential dovish implications of the Fed Chair report, though gains somewhat limited with credibility/independence considerations in focus.


• Pre-market movers; Micron (+2%, beat Q3 estimates and issued an above-expectation outlook for Q4), Jefferies (-2.5%, Q2 profit fell, as geopolitical and economic uncertainty weighed on investment banking and capital markets).


• Focus for the day shifts to a slew of US data; final US GDP stats for Q1 are expected to see the headline unrevised at -0.2%, deflator unrevised at 3.7%, core PCE prices unrevised at 3.4% (NOTE: May PCE data is due on Friday). Weekly initial jobless claims are seen little changed at 245k, while continuing claims (which coincide with the BLS survey window for the May jobs data) are seen rising a touch to 1.95mln from 1.945mln. The US advanced goods trade deficit is expected to widen slightly to USD 88.5bln (prev. 87bln). Some Fed speakers are also scheduled.

26 Jun 2025 - 10:15- ForexData- Source: Newsquawk