EUROPEAN EQUITY UPDATE: European bourses broadly lower in the aftermath of the Fed and large cap results

STOXX 600: -0.3%

• 
  European bourses has opened negative with downside in DAX 40 (-0.2%), FTSE 100 (-0.6%), CAC 40 (-0.5%) and Euro Stoxx 50 (-0.4%).


• Sentiment for UK equities are weak due to anticipation of the UK budget and the Telegraph announcing that Chancellor Reeves is considering a 2p income tax. CAC 40 has been pulled down by large French companies like Stellantis, Credit Agricole, and Schneider Electric which have seen some pressure in shares after earnings.


• A number of key data points to keep traders busy, including; French GDP (beat exp.), Spanish inflation (slightly hotter-than-expected), German GDP (no growth Q/Q, whilst Y/Y beat exp.), State CPIs (point to cooler than exp. Y/Y print for the Nationwide figure, but perhaps to a lesser magnitude than expected). National figure due later.


• Today will be a relatively busy day with much to look ahead to. The ECB will also announce the deposit rate which is expected to stay at 2%. We will also get post-policy comments from ECB Lagarde.

Sectors: Negative

• 
  European sectors have opened largely in the red. The only upside this morning is Technology (+0.4%) and Healthcare (+0.1%). Tech seemingly boosted by the Trump-Xi readout and following strong Google results, though Meta/Microsoft was not so good.


• At the bottom we have Media (-1.5%) which has been heavily pulled down by WPP (-11.9%) after weak q3 revenue, missing expectations whilst cutting outlook. Basic Resources (-1%) also find itself near the bottom due to downward pressure from base metals such as copper, Aluminium, zinc etc. Telecommunications (-1%) and Automobiles & parts (-0.9%) are also companies that find themselves near the bottom. Newsflow for Telecommunication is light though Nokia (-2.8%) seems to still be weighed down after a broker downgrade yesterday, pulling down the Telecommunication sectors whilst losses in Stellantis (-4.8%) due to the company estimating net tariff expense of approx. EUR 1bln as well as the company announcing additional charges in H2 has driven losses down for the Auto sector.

Movers:

• Lufthansa (+3.6%) - Q3 (EUR): Adj. EBIT 1.33bln (exp. 1.3bln), EPS 0.81 (exp. 0.59), Revenue 11.2bln (exp. 11.2bln).


• ING Group (+2.7%) - Q3 (EUR): Net income 1.79bln (exp. 1.41bln), NII 3.82bln (exp. 3.81bln), raises FY25 total income to around 22.8bln and ROE greater than 12.5% (prev. around 12.5%).


• AB InBev (+1.1%) - Q3 (USD): Revenue 15.13bln (exp. 15.2bln, prev. 15.04bln Y/Y), Adj. EBIT 4.21bln (exp. 4.16bln), Underlying Profit 1.97bln (prev. 1.97bln Y/Y), Organic Adj. EBITDA +3.3% (exp. +0.84%). Co. announced a USD 6bln share buyback.


• Schneider Electric (-3.1%) - Q3 (EUR): Revenue 10bln (exp. 9.78bln). North America up +15%, led by systems business in the US. Asia Pacific – India & Australia up double-digit, China up low-single digit. Confirms 2025 targets. (Schneider Electric).

US Equity Futures: ES -0.2%, NQ -0.2%, RTY +0.1%

• 
  US equity futures are mixed, (ES -0.2% NQ -0.2% RTY +0.1%), with slight outperformance in the RTY as it attempts to pare back some of the underperformance seen in the prior session. In terms of key pre-market movers; Meta (-7.8%, mixed results with focus on AI costs), Microsoft (-3%, strong results potentially overshadowed by Q2 rev. guidance), Google (+7.9%, beats forecasts).


• Looking ahead, we have Fed Bowman and Logan speaking. We also have earnings from Amazon, Apple, Coinbase, Reddit, MicroStrategy, Cloudflare, Riot Platforms, Eli Lilly, Merck, Comcast, Roblox, Mastercard.

30 Oct 2025 - 10:05- EquitiesData- Source: Newswires