EUROPEAN EQUITY UPDATE: Choppy trade since firmer opening

STOXX 600: -0.1%

• European equities are softer after initially opening with upside. European market sentiment has failed to follow APAC and Wall Street where sentiment was higher after confirmation of Xi and Trump meeting. There’s been no clear macro driver for the recent losses.


• Data this morning includes UK retail sales which were higher than expected for MM and YY. German flash PMIs was also higher across the board beating expected levels across Manufacturing, Composite and Service PMI. EZ flash PMI for service and manufacturing also beat expected figures whilst French PMI was more mixed due to Services PMI missing expectations, but manufacturing PMI above expectation.


• Looking ahead: We have potential rating reviews due from Moodyʼs on France (currently Aa3), DBRS on the European Union (AAA), and S&P on Belgium (AA). On the speakers' slate, the European Council meeting continues and concludes today. ECB's Nagel is scheduled to make remarks.

Sectors: Negative

• European sectors have opened slightly negative this morning. Technology (+0.9%) takes the top spot, with sentiment boosted by post-earning strength in Intel. Financial Services (+0.7%) is in second place driven by gains in LSEG (+4.3%) after a broker upgrade from JP Morgan saw their shares increase following yesterdays’ solid win. Whilst Travel and Leisure (+0.6%) is in third driven by gains in Accor (+5.6%) after the company announced that they will be increasing guidance.


• At the bottom is Real Estate (-1.2%), which has been weighed down by losses in Unibail (-1.7%) after the company reported a lower than expected nine months proportionate turnover. Telecommunication (-0.9%) and Utilities (-0.8%) also find themselves near the bottom, though newsflow has been light to determine the driving force behind the downtick.

Others:

• Natwest (+2.3%) - Q3 (GBP): Pre-tax operating profit 2.18bln (exp. 1.82bln), NII 3.27bln (exp. 3.21bln), raises FY income ex-items, ROTE guidance, expects ROTE greater than 18% (prev. guided 16.5%).


• Sanofi (SAN FP) - Q3 (EUR) EPS 2.3 (exp. 2.26), Revenue 12.4bln (exp. 12.7bln), Business EPS 2.91 (exp. 2.65); guidance unchanged. Dupixent sales: 4.2bln (exp. 3.985bln). Pharma launches increased sales by 57.1%. (Sanofi)


• Heineken (-1.8%) - Co. says any shift in production to mitigate US tariffs would be some time away, US tariffs hurting US profitability as they cannot raise prices vs local competitors. May close some more breweries in Europe, while investing in others. Unlikely to sell any brands in the portfolio, but may let some fizzle out.


• Vinci (-3.4%) - 9M (EUR): Total Revenue 54.25bln (prev. 52.30bln Y/Y), Order Intake 46.9bln (prev. 48.4bln Y/Y).

US Equity Futures: -XX%

• US equities are firmer in the pre-market with upside in ES (+0.2%), RTY (+0.2%) and NQ (+0.3%). The confirmation of a meeting between Trump and Xi has continued to fuel market sentiment since the close in Wall Street where stocks finished higher.


• Looking ahead, the highlight on today's data docket is the US September CPI report, which comes ahead of the Fed's policy meeting next week. We will also get US Flash PMI October and the University of Michigan Final data for October. No speakers today.

24 Oct 2025 - 10:20- EquitiesData- Source: Newsquawk