EUROPEAN EQUITY UPDATE: Stocks downbeat amid ongoing tariff and growth woes

STOXX 600: U/C%

• European bourses started Friday trade on a cautious note after APAC stocks were pressured on tariff and growth concerns overnight, and ahead of next week’s "Liberation Day", and with markets also bracing for US PCE inflation data later today.


• Before the open, equity futures saw a mild sell-off alongside reports of a 7.7 magnitude earthquake striking central Myanmar, with tremors felt in Thailand, Vietnam and China's Yunnan. Sentiment then stabilised before selling off further.

Sectors: Negative

• Sectors are mostly in the red, led by Banks, with Deutsche Bank down 2% after the departure of their CFO, and Commerzbank (-3.7%) on the back foot, on track for its worst day since November 2024. Real Estate is at the top of the pile, with lower yields aiding the sector.

Indices: Dax (-0.3%), CAC (-0.2%), FTSE 100 (U/C), FTSE MIB (-0.5%), IBEX (-0.2%)

• For the FTSE 100, UK Retail Sales topped expectations, rising 2.2% Y/Y in February, suggesting that consumer confidence is recovering. Meanwhile, Q4 GDP rose +0.1% Q/Q, in line with expectations. Capital Economics said that overall, "while there are some tentative green shoots for February, the big picture of an economy that is struggling under the weight of higher business taxes, heightened global uncertainty and weak consumer sentiment remains."


• In Germany, data showed GfK's gauge of consumer sentiment was little changed at -24.5; while economic and income expectations showed improvements, higher saving tendencies indicated ongoing uncertainty.


• In France, prelim HICP rose by +0.2% M/M in March, lower than expected, with the annual rate unchanged at 0.9%. Within the CAC, Ubisoft (+10.0%) outperforms, after China’s Tencent is set to take a EUR 1.2bln stake in one of the developer’s new spin-offs.


• The FTSE MIB sees Ferrari (+2.7%) at the top, following upgrades from Kepler and Barclays, elsewhere in the index, the tyre maker Pirelli is lower by 1.7%, after postponing earnings to next month.

US Equity Futures ES -0.2%, NQ -0.4, RTY -0.1%, YM -0.2%

• The highlight on today’s data calendar is the US PCE inflation data for February, as well as the final reading of UoM consumer sentiment data for March. Additionally, trade headlines will be in focus, as US President Trump is set to speak with Canada's PM Carney. On that theme, traders' attention will pivot towards the April 2nd 'Liberation Day' next week.

28 Mar 2025 - 10:00- ForexData- Source: Newsquawk