EUROPEAN EQUITY UPDATE: Healthcare lags on RFK's appointment

STOXX 600: -0.5%

• European bourses began the session on a mostly lower footing, in a continuation of the losses seen on Wall St. in the prior session; a paring of the strength seen in Europe yesterday may also be at play.
• Since the cash opened, sentiment gradually improved and indices now display a mixed picture in Europe.

Sectors: Negative

• European sectors are mixed vs initially opening with a strong negative bias.
• Energy is towards the top of the pile, with Banks and Insurance following just behind; the latter propped up by post-earning strength in Generali.
• Healthcare is by far the clear underperformer, with several heavyweights within the sector seeing notable downside after US President-elect Trump picked vaccine sceptic RFK Jr as HHS Secretary; AstraZeneca (-2.6%), GSK (-2.1%).

DAX 40: U/C

• A flat session for the index thus far.
• Stock-specific stories have been light; Bayer (U/C) is fairly unreactive to reports that shareholders have called on the CEO to make decisive action amid the recent stock rout. Continental (+2.4%) is firmer today, with strength attributed to a UBS note saying that the planned spinoff of Continental’s auto division looks likely.
• Other German cos: Evotec (+20.1%) gains after it received a non-binding takeover offer from Halozyme (HALO) at EUR 11/shr.

Others: CAC 40 -0.1%, AEX -0.6%

• The AEX is modestly weaker, weighed on by losses in Tech names, which is giving back some of the gains seen in the prior session; ASML (-2.8%), BE Semi (-2.4%). Elsewhere, Aegon (+1.9%) edges higher after it raised its FY guidance.
• In the UK, the FTSE 100 is incrementally lower, having posted losses to a larger magnitude earlier. Land Securities (+2.2%) tops the pile after it reported strong results. Burberry (U/C) is flat after soaring roughly 20% in the prior session; the Co. received a broker upgrade at UBS.

US Equity Futures: ES -0.5%, NQ -0.8%, RTY -0.7%

• Futures are entirely in the red, with slight underperformance in the tech-heavy NQ, in a continuation of the negative price action seen in the prior session; which was ultimately sparked by a hawkish-leaning Powell.
• Pre-market movers: Applied Materials (-6.2%) slips after reporting soft revenue guidance, which ultimately overshadows strong Q4 results.