EUROPEAN EQUITIES UPDATE: Stocks wane after initial positivity whilst Flash PMIs printed mixed

STOXX 600: +0.2%

• The STOXX 600 began the week on a firmer footing before trimming opening gains after a mixed APAC handover, which saw the Hang Seng close higher by almost 1% ahead of BYD earnings, the company holding a 2.8% weighting in the index, and other indices uneventful.


• Sentiment in Europe remains capped by ongoing geopolitics, with Russia-US talks in Ukraine ongoing in Riyadh, while Israel increases its offensive in Gaza and Lebanon.


• Flash PMIs from Europe this morning were mixed, with France topping expectations across the board, whilst Germany saw its Services miss forecasts (albeit still in expansion), and the UK saw Services beat and Manufacturing miss. The common denominator across the PMIs was uncertainty regarding US tariffs.


• The rest of the European day is light in terms of data, with US PMIs and BoE Governor Bailey, who is set to speak on UK growth.

Sectors : Mixed

• Sectors are mixed, after opening almost entirely in the green. Healthcare is the clear underperformer, led by losses in Bayer, which is down -7.4% at the time of writing.


• Specifically, the Co. was ordered to pay some USD 2.1bln to a plaintiff amid claims Bayer's RoundUp caused his cancer.


• Turning to the positive side, the best performing sector is Basic Resources, after JPMorgan gave a “Double Upgrade" to the Mining sector, which sees the likes of London-listed Antofagasta and Anglo American up 2.6% and 3.7% respectively.

US Equity Futures ES +1.0%, NQ 1.1%, YM +0.7%, RTY 1.1%

• US equity futures are entirely in the green, each firmer by around 1%. This comes as risk sentiment improves amid the weekend’s tariff reports. Specifically, US President Trump has reportedly planned his “Liberation Day” with a more targeted push, set up to exclude some nations, or Blocs, according to Bloomberg.


• Looking ahead, the US day sees a fresh PMI release, and Fed speakers including Barr and Bostic. Of course, participants will also be looking for any response from the US Admin, after these Tariff related reports over the weekend.

24 Mar 2025 - 10:05- ForexEU Research- Source: Newsquawk