EUROPEAN EQUITY UPDATE: Stocks indecisive as markets digest latest tariffs

STOXX 600: U/C

• European bourses are mixed and trading on either side of the unchanged mark, continuing the indecisive mood in APAC trade overnight. In recent trade, downside has picked up a touch.


• Markets are digesting the latest tariff updates, in which US President Trump signed proclamations to reimpose a 25% tariff on steel and aluminium imports and declared there are no exceptions or exemptions, effective March 12th. Trump also said they are looking at tariffs on cars, pharmaceuticals and chips and will hold meetings over the next four weeks, while they will do reciprocal tariffs over the next two days. Trump also commented that tariffs on metals could go higher and he does not mind if other countries retaliate.


• The EZ-specific docket has been very thin. Focus has been on speak via EU Officials; Commission Presider von der Leyen said unjustified tariffs on the EU will not go unanswered; they will trigger firm and proportionate countermeasures – though sparked little move in the complex at the time.


• Citi European Equity Strategy - Downgrades: Basic Resources to Neutral; Luxury to Neutral; Food Beverage & Tobacco to Underweight. Upgrades: Healthcare to Overweight; Financial Services to Overweight; Chemicals to Neutral.

Sectors: Mixed

• European sectors are mixed and with the breadth of the market relatively narrow (ex-Basic Resources).


• Media takes the top spot, joined closely by Energy; the latter is buoyed by strength in underlying oil prices.


• Consumer Products was initially the outperformer, lifted by post-earning strength in Kering (+2.2%) – but the upside has since mostly pared. The Gucci-parent sales declined 12% in Q4 (in-line with expectations), with the CEO seeing stabilisation; the CFO noted of Sequential improvement of mainland China sales of around 6ppts in Q4.


• Basic Resources sit as the laggard after US President Trump signed proclamations to reimpose a 25% tariff on steel and aluminium imports.


• Travel & Leisure is hit by shares in Entain (more below).

Others: FTSE 100 U/C, FTSE MIB -0.1%,

• The FTSE 100 is a little firmer today, with the index lifted by higher oil prices and the relatively lower GBP – but with gains capped by some individual movers. Firstly, BP (-0.1%) is a little lower after its Q4 results missed expectations, with a USD 1.75bln share buyback failing to impress investors. Entain (-9%) slumps after its CEO departed the firm (in turn dragging on the Travel & Leisure sector) Mining names are broadly on the backfoot given the weakness in metals prices; Anglo American (-2.2%), Antofagasta (-1.5%).


• The FTSE MIB is trading on either side of the unchanged mark; for the index, UniCredit (-3.2%) sits at the foot of the pile after beating across its headline Q4 metrics; downside stems from reports that Delfin is looking to sell its stake in the co. Elsewhere, Mediobanca (+1.4%) gains after it reported strong figures across the board.

US Equity Futures: ES -0.2%, NQ -0.2%, RTY -0.4%

• Futures are modestly lower across the board, giving back some of the upside seen in the prior session; the RTY modestly underperforms.


• US President Trump is expected to sign executive orders on Tuesday at 15:00EST/20:00GMT.


• The US Day sees the release of the NFIB Business Optimism Index for January, and the weekly Redbook data. On the speakers' slate, Fed Chair Powell will deliver his semi-annual testimony to the Senate – a slew of other Fed speakers are due.

11 Feb 2025 - 09:55- MetalsResearch Sheet- Source: Newsquawk