EUROPEAN EQUITY UPDATE: Europe's solid start to Q4 continues

STOXX 600 +0.7%, DAX 40 +1.2%, CAC 40 +1.1%, FTSE 100 -0.1%, SMI +0.6%, IBEX 35 +0.1%, FTSE MIB +0.3%

• European bourses are trading mostly higher as the region's solid start to the quarter continues. The FTSE 100 is the main outlier, trading lower after yesterday's healthcare and energy-led gains. From a macro perspective, it is very much a case of more of the same as incremental drivers remain light aside from the overhang of the US government shutdown. However, this is much more of a US-specific issue than a global one and even then, it is not having any obvious impact on the performance of US equities (see section below for details)

Sectors: Mostly firmer

• Sectors are mostly firmer with outperformance in Tech following the strength seen yesterday stateside. Other notable gainers include Autos with Stellantis (+7.2%) shares surging after its latest US sales figures, whilst Ferrari (+2.8%) shares are benefitting from a broker upgrade at HSBC. Luxury names are also on the front foot thanks to post-earnings gains in Brunello Cucinelli (+3.1%), which is also boosting the likes of LVMH (+3.2%) and Kering (+1.4%). To the downside, Utilities is the laggard, dragged lower by SSE (-2.0%) after 6-month results disappointed.

Individual movers

• Tesco (+3.9%) shares are higher after raising guidance alongside H1 results


• Wizz Air (+2.7%) higher post its September update


• Siemens (+2.6%) shares are on the front foot following a Bloomberg report that the Co. is said to be studying a spinoff of a large part of its stake in Siemens Healthineers


• Novo Nordisk (+2%) shares are benefitting from a broker upgrade at HSBC


• Continental (+1.7%) shares are firmer after confirming 2025 FCF guidance despite warning that Q3 margins at its tyres division seen closer to lower end of FY target range


• Orange (-1.4%) shares are on the backfoot after a broker downgrade at Oddo

US Equity Futures: ES +0.2%, NQ +0.3%, RTY +0.4%

• US equity futures are building on yesterday's gains, which were driven by a dovish repricing of Fed easing best post-ADP and outperformance in the heavyweight tech sector. From a macro perspective, the narrative is dominated by the US government shutdown, which could reduce GDP growth by 0.1–0.2 ppts per week. However, it is not having any obvious impact on the US equity space at this stage. That being said, the longer the shutdown goes on, the more tier 1 US data will be delayed and thus the less visibility the Fed will have on the US economy. For now, markets are increasingly confident that the FOMC will carry on its rate cutting path with a 25bps reduction later this month now fully priced.


• In terms of pertinent newsflow, Apple (+0.3% pre-market) is halting its planned Vision Pro headset revamp to prioritise development of AI smart glasses aimed at competing with Meta, Bloomberg reports. Starbucks (U/C) has raised its quarterly dividend to 0.62/shr (prev. 0.61). JPMorgan raised its price target for Alibaba’s (ADR +2.9% pre-market) Hong Kong shares by nearly 45% to HKD 240, a street high, Bloomberg reports.

02 Oct 2025 - 10:15- EquitiesData- Source: Newsquawk