EUROPEAN EQUITY UPDATE: Stocks hold modest gains, UK FTSE outperforms post-CPI

STOXX 600: +0.3%

• European bourses generally opened modestly firmer, and have trudged a little higher as the morning progressed. The DAX 40 & FTSE 100 outperform vs peers.


• The EZ data docket has included Final French/Spanish inflation metrics (the latter saw a slight revision higher to its M/M metric). For Germany, Wholesale Price Index printed at 0.1%; the FY GDP (2024) figure printed in-line with expectations at -0.2%. Ultimately, the metrics had no significant impact on price action.


• ECB's de Guindos noted that "the disinflation process is well on track"; and reiterated the ECB's meeting-by-meeting approach.

Sectors: Positive

• European sectors hold a strong positive bias, with only a couple of industries residing in the red/flat.


• Real Estate is the outperformer today, buoyed by gains in UK homebuilders after the cooler-than-expected inflation figures out of the region. Retail follows closely behind, with Telecoms completing the top three.


• Consumer Products is the slight laggard today, joined by Food Bev & Tobacco and Healthcare.

Majors FTSE 100 +0.7%, DAX 40 +0.5%, CAC 40 +0.2%

• The FTSE 100 is the best performer in Europe after a couple of days of underperformance and following the cooler-than-expected UK inflation report. On the data, UK Services CPI printed below consensus and below the BoE forecast; the figures can ultimately help to alleviate some fiscal headroom-related fears – this optimism has been seen in Gilts, where it gapped higher by circa 75 ticks. In terms of stock specifics, UK Homebuilders are broadly on a firmer footing; Vistry (+7.5%) and Persimmon (+3.4%) both top the pile; the former provided a positive trading update whilst Persimmon received a broker upgrade – the dovish shift in BoE market pricing has also helped to lift sentiment in the index. Anglo American (-1.4%) and Antofagasta (-0.4%) both edge lower after being downgraded at RBC.


• The CAC 40 is a little firmer today. Sanofi (+1.7%) gains after its Executive said it "doesn't expect things to be incrementally negative in the change in the US administration, but it may be chaotic for a time". Outside of the main index, Bureau Veritas (+3.7%) gains on reports that it is in talks to combine with SGS (-3.5%). For the gaming name Ubisoft (+3%), Bloomberg reported that Tencent and the Guillemot family are mulling a Ubisoft asset JV.

US Equity Futures: ES +0.1%, NQ +0.1%, RTY +0.1%

• Futures are very modestly in positive territory, as traders await the day’s key US CPI print.


• On that, the annual rate of headline inflation is seen rising, though the core measure is expected to be unchanged (preview below). Elsewhere, US corporate earnings will get into full swing as key financials publish Q4 metrics today. Fed speakers include Williams, Fed’s Goolsbee (2025), Fed’s Kashkari (2026), and Fed’s Barkin (2027 voter).

15 Jan 2025 - 10:15- Fixed IncomeData- Source: Newsquawk