EUROPEAN EQUITY UPDATE: Momentum for European bourses continues; Auto and Banks are the standout sectors, whilst optimised products & services continuously lag

STOXX 600: +0.5%

• European bourses have opened largely firmer, once again carrying on the positive momentum displayed over the last two days. The FTSE 100 underperforms with sentiment in the region hit amidst fears that PM Starmer's leadership is "vulnerable".


• Key data this morning includes German CPI, which was in line with expectations and Italian Industrial Output, which came out higher than expectations.


• Looking ahead, speak from ECB's Schnabel. Other speakers in the ECB include de Guindos and Buch; elsewhere, comments from BoE's Pill.

Sectors: Positive

• European sectors are also largely in the green. The biggest winners thus far today are Utilities (+1.1%), Banks (+1.1%) and Automobiles & Parts (+1.3%). Uptick in Ferrari (+2.0%) following broker upgrade has boosted the Autos sector; gains in Infineon (+3.6%) after Co. raises 2026 sales target amid booming AI power supplier demand has lifted Tech. Banks have been given a boost by ABN AMRO (+3.6%) after beating Q3 profit forecasts and announcing an agreement with Blackstone to buy NIBC for approximately EUR 960mln. Utilities has been charged by gains in RWE (+3.4%) after nine month profit beats forecast and SSE (+11.4%) after Co. announces a series of big investments, which include GBP 2bln in fresh equity raise to finance network upgrades for a GBP 33bln 5-year investment plan.


• At the bottom of sectors is Retail (-0.3%), Travel & Leisure (-0.5%) and Optimised Personal Care Drug and Grocery Store (-0.8%). Macro newflows remains light to explain the downticks in those sectors but optimised products and drugs continue to lag with losses in large UK supermarkets such as Tesco (-2.3%) and Sainsbury (-1.5%).

Movers:

• Brenntag (+5.0%) - Q3 (EUR): Revenue 3.72bln (exp. 3.765bln), Operating EBITA 947mln (prev. 281mln Y/Y), sees FY25 operating EBITA guidance towards the lower end of 0.95-1.05bln range.


• Bayer (BAYN GY) - Q3 (+4.3%): Sales 9.66bln (exp. 9.79bln), Adj. EBITDA 1.51bln (exp. 1.29bln), Core EPS 0.57 (exp. 0.33). Confirms FY Outlook. CEO said “Overall, in a pivotal year, we’re in a strong position to deliver the 2025 Group guidance we upgraded last quarter”


• Iberdrola (+1.3%) - Fitch affirms the co. at ‘BBB+’, with outlook stable.


• Experian (-1.6%) - H1 (USD): Revenue 4.06bln (exp. 4.01bln), pretax profit 0.98bln (exp. 1.042bln), sees FY26 revenue growth at the top end of its guidance range.


• Edenred (-9.9%) - Co. sees FY26 organic EBITDA decline between 8-12% notes financial impact of new regulatory framework for mean and food vouchers in Brazil.

US Equity Futures:

• Heading over to the Atlantic, US equity futures are broadly modestly firmer with some outperformance in the NQ. Reports are that the House Democratic caucus will meet at noon on Wednesday in Washington, with the market currently on edge regarding government shutdown updates.


• Today sees a high count of speakers, which includes Fed's Williams, Paulson, Waller, Bostic, Miran and Collins and Treasury Secretary Bessent. Additionally, heading further North to Canada, all eyes and ears will be on the Canadian BoC minutes. OPEC MOMR is also scheduled for later.

12 Nov 2025 - 10:00- EquitiesData- Source: Newsquawk