EUROPEAN EQUITY UPDATE: Mixed opening with Auto outperforming following Mercedes rally whilst Telecommunication lags after Nokia pullback

STOXX 600: +0.1%

• European equities have opened mixed. Upside can be seen in FTSE 100 (+0.4), AEX (+0.7%), Euro Stoxx 50 (+0.3%) whilst the CAC 40 and DAX are flat


• Earnings from some of the large-cap stocks in Europe saw their respective prices rally, in turn giving European bourses some momentum. Strong earnings from GSK after Co. raised guidance following strong Q3 earnings have given the FTSE 100 (+0.4%) and Euro Stoxx 50 some healthy gains.


• Data this morning includes the Spanish Estimated GDP, which was softer than expected, likely leading to some modest pressure this opening for the IBEX (-0.2%). Other data includes UK BoE consumer credit, which was softer than expected, and UK Mortgage Lending and Approvals, which beat expectations, though this didn't trigger any market reaction.


• Looking ahead for Europe, no notable updates or speakers ahead due to ECB blackout, with the central bank set to announce policy rate tomorrow, whilst the FOMC gears up for their announcement tonight.

Sectors: Mixed/Negative

• European sectors have opened largely mixed but slightly skewed towards the red. The biggest winner thus far has been the Automobiles & Parts sector (+1.8%), driven by gains in Mercedes (+5.4%) following the buyback announcement and Stellantis (+2.8%) after Co. announced collaboration with NVIDIA and Uber to advance robotaxi development.


• Basic resources (+1.4%) and Health Care (+0.7%) have also emerged towards the top. Basic Resources sector has been given a lift by Glencore (+4.9%) due to strong production reports in Q3, as well as rising metal prices, with gold and copper prices strengthening. Healthcare is bolstered by GSK after healthy Q3 earnings.


• At the bottom, is Telecommunications (-0.8%), Insurance (-0.6%) and Travel and Leisure (-0.6) Telecommunication has been pinned down by Nokia after the company’s share pulled back from highs yesterday following the USD 1bln NVIDIA investment, whilst utility has seen some pullback following losses in Fortum.

Movers:

• Neste (+8.5) – Shares rise, giving the energy sector some charge after adjusted EBITDA beat expectation - (EUR): Revenue 4.53bln (Exp. 4.98bln), Adj. EBITDA 531mln (exp. 484.4mln)


• Deutsche Bank (+1.5%) – Shares have risen following strong Q3 earnings. Q3 (EUR) Revenue 8.0bln (exp. 7.75bln), Net Income 1.56bln (exp. 1.3bln), Pre-tax Profit 2.45bln (exp. 2.17bln), FIC Sales & Trading Revenue 2.4bln (exp. 2.24bln, +19% Y/Y), risk provisions for credit losses EUR 417mln. Outlook: On track to deliver FY25 targets. Confirms 2025 Revenue target. Guides end-2025 CET1 essentially flat Y/Y. Sees 2025 Investment Bank Revenue Higher Y/Y. Sees 2025 Private Bank Net Revenue "slightly higher". Sees 2025 Asset Management Net Revenue Higher Y/Y Sees 2025 Corporate Bank Net Revenue essentially flat Y/Y.


• Aston Martin (-4%) - Q3 (GBP): Revenue 285.2mln (exp. 238mln), pretax profit -111.9mln), to take immediate action to further reduce FY25 Capex to around 350mln.


• Adidas (-1.4%) - Q3 (EUR): Net income 485mln (exp. 477mln), North America sales 1.298bln (prev. 1.362bln Y/Y), Greater China sales 947mln (prev. 946mln Y/Y), raises FY25 outlook, operating profit around 2bln (prev. guided 1.7-1.8bln) and double-digit currency-neutral revenue growth. "Environment is volatile with the tariff increases in the US and a lot of uncertainty among both retailers and consumers around the world".

US Equity Futures:

• US equity futures are mixed in the premarket. Upside can be seen in the Nasdaq (+0.3%) and S&P 500 (+0.1%) futures, whilst the Dow Jones (-0.3%) and Russell (-0.3%) futures are lower. Markets are currently assessing a flurry of risk events, including the FOMC announcement and presser to analyse the direction of the Fed's future policies. This comes just before mega-cap earnings from the likes of Meta, Microsoft, Alphabet. News flow overnight includes US-China trade talks advancing with China agreeing to purchase US soybeans again, whilst the US could halve China's fentanyl levy, but all eyes on the Trump-Xi meeting tomorrow.


• Looking ahead: There’s the aforementioned Fed funds Target Rate and Fed Power speech. Other releases include US EIA weekly crude production and USD 30bln 2-year FRN auction. There’s also the BoC rate decision and BoC Macklem and Rogers post-policy announcement shortly after the US cash open.

29 Oct 2025 - 09:55- EquitiesData- Source: Newswires