EUROPEAN EQUITY UPDATE: Tech sentiment boosted with NVIDIA to resume China shipments

STOXX 600: +0.2%

• European bourses hold onto opening gains, with tech giant ASML lifting the AEX after NVIDIA announced it would resume sending H20 chips to China.


• On the tech/trade front, NVIDIA said it will resume H20 AI chips to China after applying for US licences, with deliveries expected soon, it also launched a new RTX Pro GPU tailored for China, fully compliant with export rules. As such, tech names are being boosted this morning, ASML +2.5%.


• FTSE 100 is the underperformer in Europe, after being the sole gainer on Monday. The index today is being weighed down by homebuilder Barratt Redrow (-8.0%), after it reported FY25 home completions below expectations due to weak investor, and international demand. On UK specifics, BoE’s Bailey and Chancellor Reeves will speak at Mansion House tonight. Recent reports suggest Reeves will announce a permanent mortgage guarantee scheme and increased home loans for lower-income buyers, following the market turbulence after her welfare reform U-turn and teary parliamentary appearance.


• Across the Channel, the CAC also underperforms, though to a lesser degree than the FTSE, with the Nation’s fiscal problems in focus. Prime Minister Bayrou will unveil a plan to reduce the country’s budget deficit by around EUR 40bln in 2026 via spending cuts and tax hikes, aiming to shrink the Eurozone’s largest budget gap, but risks sparking a parliamentary battle and potential government instability.


• Over in Sweden, the OMX Stockholm shows gains despite losses in Ericsson (-3.4%), after it posted lower than expected earnings.

Sectors: Mostly Positive

• Sectors hold onto the positive bias made at the open, with Tech and Comms retaining their respective top and bottom spots.


• Tech is being boosted by the aforementioned NVIDIA-China chip story, with top constituent ASML firmer by +2.5%, Prosus +2.3% and Infineon +1.3%.


• Also towards the top is Media, on speculation that Accenture (U/C pre-market) and WPP (+4.9%) had discussed a potential M&A deal, with press suggesting there has been high-level contact between the two companies.


• Comms is being weighed on after Ericsson’s (-3.4%) Q2 sales missed expectations, with the company flagging US tariff hits. Deutsche Telekom (-0.8%), Orange (-1.3%)

Individual Movers

• WPP +4.9%: Said to have had M&A talks with Accenture


• ASML +2.0%, Prosus +2.3%, Infineon +1.3%: NVIDIA to resume chip sales to China


• TomTom +2.3%: Upgrades FY rev. guidance


• Barratt Redrow -8.0%: FY home completions miss exp.


• Ericsson -3.4%: Sales miss exp., Cloud Software growth exp. to be broadly similar to 3-year average seasonality


• Orsted +8.4%: Upgraded at Morgan Stanley


• Experian +4.1%: Q1 Revenue growth firmer than exp.


• L'Oreal -0.7%: downgraded at Barclays


• Henkel +0.5%: upgraded at Barclays

US: ES +0.3%, NQ +0.6%, RTY U/C

• Stateside, equity futures are mixed into US CPI and Fed speak, with outperformance in NQ after the aforementioned tech news; NVIDIA +4.2% & US listed Chinese firms BABA +6.4%, NIO +2.6%, PDD +2.5%.


• Ahead, we expect earnings from BlackRock (+1.2%), Bank of New York Mellon (U/C), JPMorgan (+0.3%), Wells Fargo (U/C) and Citigroup (+0.4%). (Prices Premarket)


• On the data front, the highlight of the day is the CPI report for June, where the headline and core annual rates are seen rising. (Full primer on the Newsquawk feed), also on the docket are a number of Fed speakers including Fed’s Bowman (The main focus), who will speak after the release of inflation data, as a reminder, her recent commentary suggested that she supported a July rate cut, we look for any further colour on this, especially with money markets not pricing any decent chance of a July rate cut. Elsewhere on the speakers front, Barr will speak on financial inclusion, Barkin on data forecasting and finally, Collins will speak at a NABE conference.

15 Jul 2025 - 10:20- EquitiesResearch Sheet- Source: Newsquawk