EUROPEAN EQUITIES UPDATE: A sea of green in Europe amidst catalyst thin trade

STOXX 600: +0.6%

• European bourses began the European session mostly in the positive territory, and sentiment continued to improve as the morning progressed, to display a sea of green in Europe.


• In recent trade, some of the upside has subsided, but with bourses generally near best levels as it stands.


• The European docket has been light thus far, and will continue to remain light for the remainder of the session; a scheduled speech from ECB's Cipollone proved to be a non-event; Panetta is due later.

Sectors: Positive

• European sectors hold a strong positive bias, with only a handful of industries in negative territory.


• The top of the pile is populated by Banks, Travel & Leisure and Tech. The latter is buoyed by gains in heavy-weight ASML (+2.1%) after the co. noted that the impact of export restrictions will fall within its existing outlook and will not have a direct material impact on business in 2024. Real Estate is the laggard today, joined by Optimised Personal Care.

European indices: FTSE 100 +0.6%, CAC 40 +0.7%, DAX 40 +0.5%

• The FTSE 100 is on a firmer footing, with performance in-line with peers. Mining names are stronger across the board, benefiting from gains in underlying metals prices given the risk tone, and amidst a broader pullback in the Dollar; Glencore (+2.4%), Rio Tinto (+1.2%). More broadly in the UK, Barclaycard's November consumer spending fell 0.5% Y/Y; and the BRC Retail Sales was also poor.


• The CAC 40 is one of the better performers in today’s session, following the prior day's underperformance given the political unrest surrounding the country. On that, France is to examine the no-confidence motion at 3pm London on Wednesday. Luxury names are towards the top of the pile, with LVMH (+1.7%) and Kering (+1.4%) both posting gains. Airbus (+1.1%) is firmer today after Reuters sources said November jet deliveries soared 25% M/M.


• In Germany, the DAX 40 is posting gains generally in-fitting with peers. BASF (+1.7%) is towards the top of the pile, benefiting from a broker upgrade at Baader, whilst Mercedes Benz (-1.9%) suffers from a downgrade at Barclays.

US Equity Futures: ES +0.1%, NQ U/C, RTY U/C

• Futures are essentially flat and trading on either side of the unchanged mark, and unable to benefit from the positive momentum seen across the pond.


• The highlight of the US day is the JOLTS data for October, where job openings are seen ticking up to 7.475mln from 7.443mln prior. On the speakers' slate, Fed Governor Kugler (voter) will speak on the labour market and monetary policy, and Fed's Goolsbee (2025 voter) will deliver remarks on "the changing landscape for agricultural inputs".


• RBC S&P 500 outlook: raises Communication Services to Overweight from Marketweight; cuts Healthcare to Marketweight from Overweight; cuts Materials to Marketweight from Overweight.

03 Dec 2024 - 10:20- EquitiesEU Research- Source: Newsquawk