EUROPEAN EQUITY UPDATE: Stocks underpinned but cautious ahead of US-Sino trade talks

STOXX 600: +0.4%

• European bourses opened modestly firmer across the board, and have traded sideways throughout the morning thus far.


• Sentiment this week has been boosted by, a) US-China trade talks on the weekend, b) Reports that US will potentially slash China tariffs to 50% (from 145%) as soon as next week, c) UK-US trade deal breakthrough announced yesterday, d) Trump suggesting “buy stocks now”.


• The European docket has been exceptionally quiet today and this is unlikely to change aside from a couple of BoE speakers (although BoE Governor Bailey added nothing new this morning); a slew of Fed speakers are due throughout the day.

Sectors: Positive

• European sectors hold a positive bias; there is some clear outperformance in Energy, while other sectoral gainers are relatively similar in magnitude.


• Energy takes the top spot, lifted by take-over related reports by BP (discussed below); Utilities follows behind, and top three is completed by Basic Resources. Travel & Leisure and Media sit at the foot of the pile – holding modest losses.

Others: DAX 40 +0.5%, FTSE 100 +0.5%

• The FTSE 100 is on a firmer footing today, in-fitting with peers. In terms of key movers, BP (+2.5%) sits near the top of the index after the FT reported that several energy rivals have run the numbers on a potential takeover of BP. Elsewhere, IAG (+1.0%) gains after reporting a beat on its headline metrics and left its guidance unchanged. The Co. also highlights that it sees good demand for air travel across core markets and brands.


• The DAX 40 is also on a stronger footing today, and notched fresh ATHs. Commerzbank (+2.4%) benefits today after reporting strong Q1 results and maintaining guidance. Autos are broadly firmer today, given the positive risk tone; BMW (+1.7%), Mercedes (+1.5%).

US Equity Futures: ES U/C, NQ +0.2%, RTY -0.4%

• Futures are mixed, with the ES and NQ attempting to hold onto some of the strength seen yesterday, whilst the RTY dips lower.


• US day ahead is light on the data front but very heavy by way of Fed speakers; Kugler, Williams, Waller, Goolsbee and Barr are all set to speak.

09 May 2025 - 09:55- EquitiesResearch Sheet- Source: Newsquawk