EUROPEAN EQUITY UPDATE: Mixed trade in stocks with newsflow light after the Wall Street selloff yesterday

STOXX 600: +0.2%

• European bourses are mixed vs an entirely negative open; sentiment gradually improved as the morning progressed, paring some of the early-morning losses following a negative APAC handover.


• On the data front, German GDP Detailed figures were unrevised. The ECB Euro Area Indicator of Negotiated Wage Rates for Q4 slowed to 4.12% from 5.43%, but ultimately had little impact on price action. On the central bank front, ECB's Nagel noted that inflation outlook is fairly encouraging but the ECB should not rush more cuts as persistent core/services inflation warrants caution. Ahead; speak from ECB's Centeno & Schnabel.

Sectors: Mixed

• European sectors are mixed vs opening mostly lower.


• Healthcare tops the pile, with Novo Nordisk (+4%) shares on the front foot, bringing its 5-day performance to over +15%; Banks follow behind with Telecoms completing the top three.


• Tech is the clear underperformer today, after Bloomberg reported that US President Trump's team is seeking to tighten chip controls on China; it was also said that US officials reportedly met with Japanese and Dutch counterparts to restrict Tokyo Electron and ASML engineers from maintaining semiconductor equipment in China.

Others: FTSE 100 +0.2%, DAX 40 -0.1%

• The FTSE 100 is a little firmer; Smith & Nephew (+9%) tops the pile after it reported strong FY results and provided optimistic commentary for 2025. Croda (-1.5%) is a little lower after it reported mixed results; beating on Adj. Operating Profit whilst Sales was a touch soft. Unilever (-2.4%) dips on news that its CEO is to step down; nonetheless, the co. confirmed its FY25 guidance.


• The DAX 40 is on the backfoot; Rheinmetall (+2.3%) tops the pile amid reports via Bloomberg which suggested that Germany is discussing EUR 200bln in emergency defence spending. Fresenius Medical Care (+2%) gains after its Q4 results, where it beat on profit estimates. Heidelberg Materials (U/C) is little moved after its results, where results were in-line.

US Equity Futures: ES -0.2%, NQ -0.4%, RTY U/C

• Futures are mixed, with the RTY holding afloat whilst peers are in the red and as the NQ underperforms a touch. Sentiment for the tech sector has been hit amid reports that US President Trump's team is seeking to tighten chip controls on China with the US said to be pressing Japan and Netherlands to align on China restrictions and weighs tighter controls on Nvidia (-1%) chip exports to China, via Bloomberg.


• BofA says the beginning of the year has been a record start for their private clients; they note that last week, for a fourth consecutive week, clients were buying the dip in US equities, where the SPX fell 1.7%.


• Pre-market movers include; Him & Hers (-17%, gross margin missed expectations and said may stop selling weight-loss drugs). Crypto names are seen falling 4-5% after Bitcoin dips below USD 90k.


• The US data slate includes weekly RedBook sales data, monthly house price indices from the FHFA and Case Shiller, the Conference Board's gauge of February consumer confidence (seen at 103.0 from 104.1 prior), and the Richmond Fed's monthly indicators for February. In later trading, the Fed's Discount Rate minutes will be released. Fed’s Barr is due to speak.

25 Feb 2025 - 10:15- EquitiesData- Source: Newsquawk