EUROPEAN EQUITY UPDATE: Sentiment weighed down as market awaits Nvidia earnings

STOXX 600: -0.2%

• European equities have opened slightly lower this morning. Sentiment remains pinned down due to news over the weekend where US President Trump said he does not think that further tariff rollback will be necessary, which also saw APAC stocks trade lower. Furthermore, markets also remain on edge, awaiting earnings from Tech giant Nvidia on Wednesday.


• This morning there was speak via ECB's de Guindos, who spoke on economic uncertainty in the Eurozone. Data this morning includes Italian Final CPI which was unrevised.


• Morgan Stanley's (MS) 2026 European equity sector outlook: Telecoms downgraded to Equal Weight from Overweight. Business Services downgraded to Equal Weight from Overweight. Semiconductor upgraded to Equal Weight from Underweight. Metals and mining upgraded to Equal Weight from Underweight.


• Looking ahead, speakers include ECB's Lane, Cippolone and BoE's Mann.

Sectors: Mixed/Negative

• European sectors have opened mixed/negative. Leading the way are Utilities (+0.4%), Energy (+0.4%) and Real Estate (+0.2%). Macro newsflow is light to explain the marginal uptick in those sectors, although lower yield prices in gilts could help explain the uptick in real estate.


• At the bottom of sectors is Retail (-0.9%), Chemicals (-0.8%) and Automobiles & Parts (-0.8%); however, macro newsflow is also light.

Movers:

• WPP (+2.5%) - Co. is reportedly drawing takeover interest from rival Havas (HAVAS NA); talks have been at a high level, according to sources.


• Heidelberg (+1.9%) upgraded to Overweight from Equal Weight at Barclays.


• Airbus (+1.3%) - Co. is nearing a deal to sell around 100 A312NEO and several dozen 737 Max jets to Flydubai, according to Reuters’ sources. In other news, an executive states that its Middle East’s regional aircraft fleet is expected to grow to 3,700 by 2044.


• Societe Generale (+1.2%) - Co. has announced an additional share buyback programme of EUR 1bln, to start on November 19th.


• Azimut (-1.3%) downgraded to Hold from Buy at Deutsche Bank.

US Equity Futures:

• US equity futures are posting modest gains with upsides in ES (+0.5%), NQ (+0.8%), YM (+0.2%) and RTY (+0.3%). Upside which carries on from the slight momentum seen on Friday's close where some stocks paired some losses after initially opening and trading softer.


• All eyes this week will be on Nvidia earnings and FOMC minutes on Wednesday. There's also potential for the jobs data to be released following the end of the government shutdown, although no date has been confirmed.


• Looking ahead in the US, speaker dockets include Fed's Williams, Jefferson, Kashkari and Waller. Just up North in Canada, markets will be keeping an eye out on Canadian CPI as well as BoC Kozicki who is set to speak at a press conference.

17 Nov 2025 - 10:05- ForexData- Source: Newsquawk