EUROPEAN EQUITY UPDATE: Downsides in all indices; FTSE 100 the biggest loser as political uncertainty continues to brew

STOXX 600: -0.9%

• European bourses have opened largely on the back foot with all major European indices in the negative. Sentiment have reverberated from Asia which saw APAC stocks pressured following the sell-off stateside, where tech was hit on valuation and China AI race concerns, while sentiment was also not helped by recent hawkish-leaning Fed rhetoric and mixed Chinese activity data.


• Main macro newsflow this morning has been in the UK with widespread reports that PM Starmer and Chancellor Reeves are reportedly ditching budget plans to increase income tax rates, pressuring the FTSE 100 (-1.2%) even further.


• The EZ GDP and Employment figures did little to shift prices, whilst ahead, the speaker's slate includes ECB’s Buch (Supervisory) Elderson & Lane.

Sectors: Negative

• European sectors have opened largely negative. The only two sectors in the green are Energy (+1.0%) and Consumer Products & Services (+0.7%), with the latter given a boost by Richemont (+8.0%) after Co. posted higher than expected revenue and profit in H1. In Energy, sentiment is high due to elevated crude prices due to geopolitical headlines, which saw a Ukrainian drone attack an oil depot in the Russian Black Sea port of Novorossiysk. Additionally, strong earnings from Siemens Energy (+9.9%) bolstered the sector after the Co. raises financial guidance for 2026 and Q4 revenue beat expectation.


• At the bottom of sectors is Technology (-2.7%), Banks (-2.0%) and Basic Resources (-2.0%). Technology has taken cues from the US after the Nasdaq declined over the US position in the AI race against China. Mixed Chinese activity data, which saw industrial output below expectation, has reduced sentiment for the Basic Resource sector. The banking sector has been particularly weighed down by large UK banking companies due to political unrest in the UK following reports on the government U-turn. UK banking stocks like HSBC (-2.8%), Lloyds (-3.4%) and Barclays (-2.8%) have opened with losses this morning, pulling down gains for the sector.

Movers:

• Bechtle (+15.7%) - Q3 (EUR): Net income 57.52mln (exp. 58mln), EBIT 83.48mln (exp. 81.2mln), confirms FY25 forecasts.


• Aston Martin (+3.2%) – Co.’s Chair is reportedly explored a buyout of the carmaker with Saudi's PIF. However, Aston Martin said the co. was not in talks with PIF about being taken private. (FT) PIF holds around a 20% stake in the Co.


• Allianz (+1.0%) – Q3 (EUR): Operating profit 4.43bln (exp. 4.28bln), core net income 2.9bln (exp. 2.66bln), sees FY25 operating profit outlook in the upper-end of FY outlook range at least 17bln.


• ThyssenKrupp (-2.2%) - The USTR is to seek Mexico review of alleged denial of workers' collective bargaining rights at the co.'s plant.


• Deutsche Bank (-2.8%) - Reports are that, CEO Christian Sewing is expected to raise profitability targets while maintaining his existing strategy of retail cost cuts and selective investment bank spending, with a new three-year plan due on Monday. This has added further pressure to the banking sector.

US Equity Futures:

• US equities are lower in the pre market with modest losses seen in ES (-0.2%), NQ (-0.5%), YM (-0.1%) and RTY (-0.3%). Tech continues to lag due to valuation concerns.


• News overnight in the US includes US senior officials saying talks with Switzerland on Thursday were very positive, and if the deal was accepted by US President Trump, they would see a reduction of tariffs on Swiss imports. The White House also announced it had signed a deal with South Korea which includes USD 150bln of Korean investment in the shipbuilding sector approved by the US and USD 200bln of additional Korean investment committed pursuant to an MOU on strategic investments


• Looking ahead in the US, the data docket is light but today's speakers' slate includes: Fed's Schmid (2025 voter, hawkish), Fed's Logan (2026 voter), Fed's Bostic (2027 voter).

14 Nov 2025 - 10:25- EnergyGeopolitical- Source: Newsquawk