EUROPEAN EQUITY UPDATE: Scandi stocks outperform after strong earnings, US equity futures continue to build on ATHs

STOXX 600: +0.4%

• Stocks began the session with gains after constructive APAC and US sessions, and have since extended, helped by strong quarterly reports, mostly from Scandi-listed companies.


• On the week, both the Euro Stoxx 50 and broader STOXX 600 are set to finish the week in the green.


• Macro drivers are light, with no updates on the EU/US trade front as we approach the August 1st deadline.


• OMX Stockholm outperforms after a number of company reports this morning. Most notably, SAAB +12.2% after it beat on revenue and operating Profit, whilst upping its FY targets. Also, bearing manufacturer SKF trades higher by 5.0% on strong earnings, maintained guidance and a new cost-saving program, offsetting expenses related to its planned separation.


• Elsewhere in Scandinavia, Vestas (+11.5%) surged after an upgrade at JPMorgan, who noted good progress on V236 turbines in the offshore segment and highlighted improved price and cost management.


• Also doing well is the CAC 40, buoyed by reports Bollore Group is required to file a proposed takeover bid and subsequent withdrawal of shares the Co. does not already hold within Vivendi (+10.7%) within six months. Also of note, Kering was said to be considering strategic operations for its fashion brand Valentino, a report which Mayhoola CEO denied.


• Over in the UK, the FTSE 100 lags after GSK’s (-5.5%) Blenrep failed to win FDA panel support.


• The agenda today is thin, but includes more Fedspeak (via dovish Waller), as well as earnings reports from RF, TFC, MMM, SLB, AXP, HBAN, SCHW, ALV, ALY.

Sectors: Mostly Positive

• Sectors opened almost entirely in the green, and retain this bias.


• The only sector in the red is Healthcare, which has been dragged lower by the aforementioned news from GSK.


• Posting the top gains is Energy, helped by the aforementioned Vestas broker move. Also helping the sector is second-largest constituent BP (+1.7%), who agreed to sell its US onshore wind business to LS Power.

Individual Movers

• Senior +9.2% - Sales of Aerostructures business and a GBP 40mln buyback.


• Vivendi +10.7%: Bollore required to file within six months a proposed takeover bid and withdrawal of shares the Co. does not already hold within Vivendi.


• Vestas +11.5%: Upgraded at JPMorgan, Wins 527 MW order in USA.


• SAAB +12.2%: Rev. and op. Profit beat; ups FY targets.


• Burberry +4.7%: Sales & rev. better than feared; sees 2026 margin improvement


• Reckitt +0.8%: To divest Essential Home for an enterprise value of USD 4.8bln, retains 30% stake.


• GSK -5.5%: Blenrep fails to win FDA panel support.

US: ES -0.1%, NQ -0.1%, RTY -0.1%

• ES and NQ are looking to marginally extend on fresh record highs, after gains in the prior session led by firm data.


• On the data slate, the US Day sees the release of building permits for June, and housing starts. The University of Michigan preliminary sentiment data for July is expected to rise (exp. 61.5 from 60.7), though conditions are seen easing (to 63.9 from 64.8) as are expectations (exp. 55.0 from 58.1); last time out, the 1yr inflation expectation was at 5.0%, while the 5-10yr gauge was at 4.0%. In wake of today’s US data, the Atlanta Fed will update its GDPnow tracker, which was on Thursday revised down to 2.4% in Q2 from 2.6% prior. On the speakers' slate, Fed Governor Waller (voter) is due to speak on Bloomberg TV at 13:00BST/08:00EDT; overnight, he said the Fed should cut interest rates by 25bps this month to support a weakening labour market, adding that with inflation near target and limited upside risks, action was needed before the labour market deteriorates further. In afternoon trade, Baker Hughes will publish its weekly rig count data.

18 Jul 2025 - 10:05- EquitiesResearch Sheet- Source: Newsquawk