EUROPEAN EQUITY UPDATE: Stocks climb higher in quiet European trade

Analysis details (09:35)

• European equities (Eurostoxx 50 +0.4%) trade marginally firmer in what has once again been a light start to the session in terms of macro catalysts for the region. As such stocks have followed suit to the modest pick-up in US stocks after the European close yesterday. Equity sectors in Europe are a mixed bag with the Industrial Goods & Services sector top of the leaderboard thanks to gains in Schneider Electric (+5.9%) after the Co. released its medium-term targets. Capping gains for the sector though is Airbus (-1.6%) after Q3 earnings fell short of expectations and the Co. warned that the operating environment is expected to remain challenging. To the downside, the Travel & Leisure sector is by far the biggest laggard with losses in excess of 3% amid post-earnings downside in Flutter Entertainment (-11.6%) with the Co. accounting for around 25% of the index. Adyen (+28%) is comfortably the best performing stock in the Stoxx 600 with Q3 results undoing some of the heavy pain caused in August by its H1 earnings report; note, rival Nexi’s (+4.9%) shares are also supported by its own earnings release. Finally, AstraZeneca (+2.8%) shares are on the front foot after the Co. raised guidance alongside its Q3 results amid strong demand for cancer drugs.


• APAC stocks traded mostly firmer following a similar lead from Wall Street with most major APAC markets in the green although Chinese markets saw more of a muted performance. ASX 200 (+0.3%) saw its upside supported by Health and Financials, with the latter as NAB rose post-earnings, although the IT and Energy sectors lagged. Nikkei 225 (+1.3%) was firmer from the start as the recent JPY weakness lent exporters a hand and the index eventually topped 32,500. Hang Seng (-0.3%) and Shanghai Comp (Unch.) were mixed with Mainland China flat/firmer whilst the latest Chinese inflation metrics painted a picture of a fragile economy as the nation fell back into deflation. Hong Kong underperformed as the Property sector dragged the index lower.


• US equity futures (ES & NQ Unch., RTY +0.2%) are mixed, with the RTY holding onto gains, after bearing heavy losses in the past two sessions. As has been the trend in the past week, it will be yet another day, light on the data front (US IJC the notable release) and heavy with Fed speak, including Bostic, Barkin and Chairman Powell who is the last to speak at 19:00 GMT / 14:00 ET. Whilst five members were due to speak yesterday, only one spoke on monetary policy. Today is unlikely to be as much of a disappointment, with Barkin and Bostic both appearing in a Q&A, so some monetary policy remarks could be expected. In terms of stock stories to know, Nvidia (NVDA, +0.8%) is reportedly planning to unveil three new chips for China, via Star Market Daily citing sources and this is to be announced as soon as November 16th. Sticking with Big Tech, Apple (AAPL, -0.4%) is seeing some downside following news that the EU court advisor has backed the EU's USD 14bln tax order to the Co. 

09 Nov 2023 - 09:35- EquitiesResearch Sheet- Source: Newsquawk