EUROPEAN EQUITY UPDATE: Europe tilts firmer, but tech weakness reverberates from the US

European Equities:

• European Bourses have opened largely firmer (FTSE 100 +0.3%, CAC 40 +0.6%, DAX +0.2% and Euro Stoxx +0.3%), with the only downside being the AEX (-0.39%), as a result of ASML (-2.4%) shares weighing down the Dutch index, with weakness stemming from the US tech sector after reports surrounding the financial challenges of renting out NVIDIA (NVDA) chips, and its impact on margins.


• Furthermore, the US House committee are also considering tighter rules to stop companies like ASML to stop selling to China due to worries that advanced chipmaking gear is being used to strengthen China’s military and tech.


• On the data front, German industrial output fell by -4.3% M/M in August (exp. -1.0%); new orders in the manufacturing sector fell, with overall orders -3.3% M/M ex-large orders, and -2.3% in the three-month comparison, driven mainly by a -6.4% decline in automotive orders; foreign orders dropped 4.1% while domestic orders rose 4.7%; Germany's stats office said the decrease may be explained in part by the combination of annual plant closures for holidays and production changeovers.


• The European data slate is quiet on Wednesday, but features the BoE's Financial Policy Committee record. The NBP is expected to keep rates unchanged at 4.75%; the NBH's September meeting minutes are due for release. The highlight of the US Day is the release of the FOMC's September meeting minutes. Today's central bank speakers' slate is heavy, and includes: Fed's Barr (voter; text expected), Musalem (2025 voter; text expected), Goolsbee (2025 voter), Logan (2026 voter), Kashkari (2026 voter); ECB President Lagarde, ECB's Buch and Tuominen (both supervisory), ECB's Elderson; BoE Chief Economist Pill; Riksbank Governor Thedeen.

European sectors

• European sectors have opened mostly in the green. The biggest winner is Basic Resources (+1.0%), following broker upgrades for some of the biggest companies in the industry like Rio Tinto (+0.9%), Anglo American (+1.7%) and Antofagasta (+2.5%), driving up their share prices and therefore lifting the basic resource sector. Eyes also on gold miners after the yellow metal topped USD 4,000/oz to the upside.


• The Banking sector (+0.8%) is the second biggest winner today, driven by gains in Lloyds (+2.6%) due to the latest motor finance update and Lloyds announcing it is assessing the implications, while some suggested the update is not as bad as feared.


• The biggest losing sector is Automobiles and Parts (-1.6%). Trump’s tariff has weakened sentiment for the sector, and weak BMW (-4.5%) shares following cuts in the 2025 earnings forecast and weaker-than-expected growth in the Chinese market have weighed on the sector.


• Technology (-0.4%) is another loser today due to the aforementioned losses in ASML.

US Futures

• US futures are slightly firmer. NQ +0.2%, ES +0.1% and Dow Jones 0.1%. Newsflow has been light at the macro level. Prices are in a holding pattern after stocks were sold yesterday following reports via The Information that internal data shows the financial challenge of renting out NVIDIA (NVDA) chips and its impact on margins.


• The highlight of the US Day is the release of the FOMC's September meeting minutes alongside several Fed speakers such as Fed's Barr (voter; text expected), Musalem (2025 voter; text expected), Goolsbee (2025 voter), Logan (2026 voter), Kashkari (2026 voter).

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