EUROPEAN EQUITY UPDATE: Headwinds from Wall Street pressure European equities, Technology underperforms

STOXX 600: -0.4%

• European equities have opened on the backfoot this morning with losses across all major indexes with downside in DAX (-0.8%), FTSE100 (-0.14%), CAC 40 (-0.3%) and Euro Stoxx 50 (-0.7%). Headwind emanated from Wall Street where US stocks closed weaker with NVIDIA and Palantir slipping, weighing down the tech sector - sentiment which reverberated to Europe.


• This morning the Riksbank unsurprisingly kept the policy rate unchanged at 1.75%. On the European data front, Spanish and Italian service PMI beat expectations whilst Germany, France and EU, UK Services and Composite PMIs was revised higher. However, this has failed to move European bourses. The morning also saw earnings from Novo Nordisk, BMW, Marks & Spencer and Pandora (See below for more details on those earnings).


• Looking ahead: In absence of official US data, today's ADP jobs report for October will garner much attention, with the consensus looking for 28k jobs to be added (vs -32k in September). the US ISM services PMI is seen inching up to 50.8 from 50.0. On the speakers' slate, Riksbank's Jansson will deliver a post-meeting press conference, ECB's Nagel, BoE's Breeden (not expected to comment on policy) and BoC Governor Macklem are due.

Sectors: Negative Tilt

• European sectors are negative/mixed. At the bottom: Technology (-1.0%), Healthcare (-0.6%) and Banks (-0.7%). Technology has taken cues from Wall Street where the Tech sector underperformed due to losses in Palantir and NVIDIA on valuation concerns. Health Care also finds itself near the bottom due to Novo Nordisk missing on forecasts and trimming the top end of its guidance. Novo Nordisk stocks initially fell by 2% but have rallied marginally after the choppy trade and are now up +1.9% at the time of writing, although sentiment continues to lag for the healthcare sector despite Novo Nordisk bounce back.


• At the top is Automobile & Parts (+0.7%), Chemicals (+0.4%) and Construction & Materials (+0.3%). Newsflow has been light for Chemicals and Construction, however gains in BMW (+1.6%) after Co. announced stronger profit margin for Q3 and stronger demand in 2026 has increased sentiment for the Auto sector.

Movers:

• Siemens Healthineers (-6.7%) - Q4 (EUR): Revenue 6.322bln (exp. 6.451bln), adj. EBIT 1.098bln (exp. 1.128bln), proposes FY25 dividend of 1.00/shr (prev. 0.95/shr Y/Y), expects FY26 comparable revenue growth to between 5-6%.


• Pandora (-2.6%) - Q3 2025 (DKK): Sales 6.27bln (exp. 6.35bln), EPS 6.30 (exp. 6.74). FY Guidance: LFL growth 3-4% (prev. guided 4-5%), network expansion 4% (prev. guided 3%), EBIT margin "around" 24% (maintained), organic growth 7-8% (maintained). CEO says, "We are well-geared for the upcoming holiday period and set to reach our targets for the year


• Marks & Spencer (-0.6%) H1 2025 (GBP): Revenue 7.94bln (exp. 6.51bln), PBT 184.1mln (exp. 114.5mln), Food Sales +7.8% Y/Y, Fashion, Home & Beauty Sales -16.4%; consumer environment remains uncertain heading into H2

US Equity Futures: ES (-0.1%) NQ (-0.3%) RTY (+0.1%)

• US equity futures are mixed. Upside is seen in RTY (+0.1), YM is flat whilst the NQ and ES are down. NQ has continued to be pinned down by weighing risk sentiment in the Tech sector following weaker performance from Palantir and NVIDIA.


• Looking ahead in the US, data includes the ADP National Employment data, Quarterly Refunding Announcement, ISM service PMI and EIA weekly crude production. All eyes will also be on the Supreme Court Tariff hearing. Earnings include US Robinhood, AppLovin, AMC, Arm, Snap, Figma, Doordash, McDonalds, Humama.

05 Nov 2025 - 10:05- EquitiesData- Source: Newswires