EUROPEAN EQUITY UPDATE: Sentiment higher after optimism around gov’t shutdown looms; Tech the biggest following newsflow from Nvidia news

STOXX 600: +1.2%

• European equities have opened on a strong foot with upsides in DAX (+1.6%), FTSE 100 (+0.7%), CAC 40 (+1.3%) and Euro Stoxx 50 (+1.5%). Sentiment has taken cues from APAC stocks which traded higher amidst improving US-China trade environment and with hopes of ending the US government shutdown as several Democrats supported Republicans to pass a measure through the procedural vote in a rare Senate session on Sunday.


• Not much market moving data this morning, but Norwegian CPI data came out firmer than expected. EU Sentix also came out softer below expectations although this failed to move the market.


• Not much in Europe to look forward to for the rest of the day in terms of speakers and data but BoE Lombardelli was set to speak and there's the German EUR 6bln 3, 6-month T-Bill Auction and UK BoE GBP 775mln Short-term Gilt sale.

Sectors: Positive

• European sectors have opened largely in the green. The biggest this morning are Technology (+2.2%), Travel & Leisure (+2.1%), Bank (+1.9%) and Basic Resources (+1.9%). Technology has been given a boost due to newsflow from NVIDIA's CEO announcing that the Co. has very strong demand for Blackwell chips and asked TSMC (2330 TT) for more wafers to meet strong AI demand. Travel & Leisure's gains this morning have been due to a pullback of some gains following weak performance on Friday's close, where the sector finished at the bottom amidst weaker sentiment. Basic Resources also finds itself near the top due to positive Chinese inflation data, which came out largely firmer and increased metal prices with upsides in gold and copper prices. Gains are seen in Commerzbank (+4.9%) after a broker upgrade and Barclays (+2.0%) after Co is in talks with Samsung to launch a consumer credit card in the US has increased sentiment for the banking sector.


• At the bottom of sectors are, Real Estate (-0.1%) and Telecommunications (-0.4%). This is largely due to the cyclical shift the market is experiencing as sentiment is positive, leading to a subdued performance across defensives.

Others:

• Diageo (+6.8%) - Outgoing GSK CEO Emma Walmsley is being considered as the new CEO, along with other external candidates for the role.


• Commerzbank (+4.6%) upgraded to Buy from Hold at Deutsche Bank


• Siemens (+3.1%) - Co. reportedly favours direct spinoff of stake in Healthineers.


• Hannover Re (+2.7%) - 9M (EUR): Net profit 2.0bln, +7.7% Y/Y; EBIT 2.5bln, +2.1% Y/Y, raises FY25 net income guidance to around 2.6bln (prev. guided 2.4bln) and sees FY26 net income of at least 2.7bln.


• UniCredit (+2.3%) - Co. is planning to appeal to the Council of State, related to its recent ruling regarding the use of its “golden power” that had blocked the takeover of Banco BPM - This has also added to increased sentiment within the banking sector.

US Equity Futures:

• US equity futures are firmer with upside in the ES (+0.9%), NQ (+1;5%), RTY (+1.1%) and YM (+0.4%). Sentiment has heightened amid hopes that the US government shutdown will end soon after several Democrats sided with Republicans to pass a deal aimed at ending the US Government shutdown.


• Looking ahead, US speakers include Fed's Daly (2027 Voter, Dovish) and Fed's Musalem (2025 Voter, Hawkish). There's also earnings from Coreweave and Barrick Mining, and the US USD 58bln 3-year Note Auction.

10 Nov 2025 - 09:55- Fixed IncomeData- Source: Newsquawk