EUROPEAN EQUITY UPDATE: Stronger sentiment, following positive NVIDIA earnings and guidance.

STOXX 600: +0.8%

• European bourses have opened firmer across the board following tailwinds from APAC, which saw stocks surge following Nvidia's solid earnings and guidance while CEO Huang dismissed concerns of an AI bubble, stating, “We see something different".
• Data this morning includes German producer prices, with the annual rate slightly firmer than expected. Otherwise, newsflow is light as the market digests earnings from the Mega tech giant Nvidia.
• Looking ahead, highlights include EZ Consumer Confidence Flash (Nov), and speakers include BoE’s Dhingra and Mann.

Sectors: Positive

• European sectors have opened largely in the green. To no surprise the Technology (+1.2%) sector is one of the leading sectors after strong earnings and guidance from Nvidia has charged up sentiment in the Tech sector. Other sectors leading the way are Industrial Goods & Services (+1.3%) and Energy (+1.2%). Gains in BAE Systems (+2.4%) after Co. said it will collaborate with Global Foundries on semiconductors for space, whilst rising crude prices have raised sentiment for the Energy sector.
• At the bottom of sectors is Automobiles & Parts (-0.9%), Chemicals (-0.5%) and Media (-0.8%). Losses in media are likely due to some pull back after yesterday's high where the sector was the outstanding performer, whilst losses in Johnson Matthey (-4.6%) after operating profit was way below the previous level has dragged down the Chemical sector. 

Movers

• Halma (+11.2%) - H1 (GBP): Revenue 1.24bln (prev. 1.07bln Y/Y), EBIT margin 22.8% (prev. 20.7% Y/Y), Board has proposed a 7% increase in interim dividend to 0.0963. Expects FY adj. EBIT margin around 22%.
• BNP Paribas (+5.7%) - Co. has announced a new EUR 1.15bln share buyback programme for November 2025. The Co. has raised its target CET1 ratio to 13% by 2027 and confirms the ROTE target of 13% by 2028.
• Londonmetric (-1.4%) - H1 (GBP): Net rental income 221.2mln (prev. 193.1mln Y/Y), EPRA earnings 148.6mln (prev. 135.4mln Y/Y).
• JD Sports (-1.9%) - Q3 Trading Statement: Co. is on track to generate strong FCF and complete GBP 200mln of share buybacks in FY26. Expects FY26 pretax profit to be within the lower end of current market expectations. LFL sales in North America have improved in Q3, however group LFL and North America Q3 sales are down 1.7%. (JD Sports)

US Equity Futures:

• US futures are stronger across the board. Upsides in ES (+1.2%), NQ (+1.6%), YM (+0.5%) and RTY (+0.7%) after strong NVIDIA earnings. Following earnings, CEO Huang said there has been a lot of talk about an AI bubble, but "we see something different", whilst the CFO said the Co. will continue to cooperate with China.
• Other news overnight includes reports that US President Trump is considering an executive order to preempt state AI laws.
• Looking ahead is the US Philly Fed Business Index, US jobs data for September and weekly jobless claims. Speakers' slate includes Fed's Miran (Voter, Dove), Barr (Voter, Neutral), Cook (Voter, Neutral), Goolsbee (2025 Voter, Neutral), Hammack (2026 Voter, Hawk), Paulson (2026 Voter, Neutral)