Oct 21 ,2025
Synopsis:
European equity markets closed higher, near best levels. Real estate, autos and media were the the best performing sectors; basic resources, food and beverage and chemicals, the big laggards.
Markets latching onto fresh signs of a tamping down in US-China trade tensions. Speaking on Monday, President Trump again voiced optimism of a deal when he meets Xi at APEC summit. Also reiterated threat of additional 100% tariff if no deal by 1-Nov along with other potential actions like cutting off shipments of commercial airline parts.
Europe and Ukraine made significant concession, abandoning demands for full territorial restoration and accepting current line of contact should be the starting point of negotiations (FT). Joint statement by Zelenskyy and nine European leaders marks a major shift from previous insistence on pre-war borders. However, they're drawing a line against Trump's reported demand that Ukraine surrender the entire Donbas region-which would cede even more territory than Russia currently holds.
On the macro front, UK public borrowing came in at £20.2B, the second highest September borrowing on record, after 2020. UK Chancellor Reeves to announce package of measures to cut costs by £6B; will also allow artificial intelligence companies to release new products even if they don't comply with existing rules and regulations. Industry data shows UK construction at 11-year low due to rising costs. Swiss watch exports fell by 3.1% from a year earlier to CHF2B amid impact of US tariffs, the largest market for Swiss watches. On a monthly basis, exports to the US down 55.6%, but strong activity in Asia with exports to Hong Kong up 20.6% and China saw 17.8% increase and Singapore 8.3%. Exports to the UK also increased by 15.2%, bucking trend in Europe. Was second monthly drop in watch exports to the US.
Meanwhile, Bundesbank chief Nagel warned against political influence on central banks.
Busy on the earnings front; out of France, ATOS (ATO.FP) closed (8.9%) lower post weaker Q3 revenue y/y; Eurofins Scientific (ERF.FP) also down post in-line Q3 sales and confirmation of FY25 objectives. Conversely, Edenred (EDEN.FP) closed +19.6% higher after better-than-expected Q3 sales and strategic partnership announcement. In the Nordics, Husqvarna (HUSQ.B.SS) shares closed ~(7%) lower post Q3 numbers that came in below expectations. Tele2 (TEL2.B.SS) also in the red on mixed Q3 earnings and lowered FY25 guidance on capex to sales. Indutrade (INDT.SS) and Getinge (GETI.B.SS) updated investors with latest numbers. Assa Abloy (ASSA.B.SS) shares closed +5.6% higher post solid Q3 results. In the UK, Segro (SGRO.LN) released trading update while Bunzl PLC (BNZL.LN) issued Q3 trading statement with FY guidance unchanged.
In other news, Novo Nordisk (NOVO.B.DC) (1.3%) announced notice to convene an EGM to elect new members of the Board as Chair Helge Lund, Vice Chair Henrik Poulsen and some independent board members will not stand for election. Company proposed to elect Novo Holdings Chair and prior Novo Nordisk CEO Lars Rebien Sørensen as new Chair. Playtech Software Limited (PTEC.LN) closed off (22.5%) after Evolution (EVO.SS) said has learned through discovery that Playtech Software is responsible for commissioning Black Cube to prepare and disseminate 2021 defamatory report targeting Evolution.
On the M&A newsflow, Coca-Cola (KO), Gutsche Family Investments to sell 75% stake in Coca-Cola Beverages Africa to Coca-Cola HBC (CCH.LN). Unilever (ULVR.LN) announces a revision to the timetable for the demerger of The Magnum Ice Cream Company N.V. as a result of the ongoing US federal government shutdown.
Digest:
Sectors - STOXX Europe 600:
Outperformers:
Real Estate +1.33%, Autos & Parts +1.24%, Media +1.06%, Ind Goods & Svcs +0.68%, Insurance +0.63%, Travel & Leisure +0.55%, Technology +0.53%, Construct & Mtls +0.37%, Utilities +0.24%, Retail +0.24%
Underperformers:
Basic Resources (1.29%), Food & Beverage (0.64%), Chemicals (0.14%), Health Care (0.09%), Financial Svcs +0.02%, Banks +0.06%, Telecom +0.08%, Oil & Gas +0.09%, Persnl & HHold Goods +0.15%
Macro:
ECB:
Bundesbank's Nagel stresses data integrity as foundation for ECB decision-making (Bloomberg)
Geopolitics:
Ukraine and allies call for peace deal based on current front lines (FT )
Budapest venue for Trump-Putin talks sparks outrage in Europe and Kyiv (FT)
EU allies mobilize frozen assets support for Ukraine post-Trump pressure (FT)
Trump questions Kyiv's prospects in prolonged Russia conflict (Bloomberg)
Berlin and Oslo team up to secure massive Canadian submarine deal (Bloomberg)
UK:
UK Chancellor Reeves targets regulatory overhaul to ignite economic revival (Bloomberg)
Britain bolsters defenses with drone shoot-down authority at key bases (Bloomberg)
UK's building sector crashes to lowest point in over a decade (Bloomberg)
Reeves unveils regulatory purge to slash £6bn in business costs annually (FT)
France:
BlackRock, State Street funds avoid French bond sales with rule change (Bloomberg)
Germany:
Company news:
Notable Gainers
+19.6% EDEN.FP (Edenred €24.92, +4.09) -- Q3 earnings; company and Visa announce a strategic partnership
+19.0% VH2.GR (Friedrich Vorwerk Group €100.40, +16.00) -- prelim Q3 earnings
+17.9% LIME.SS (Lime Technologies SEK355.00, +54.00) -- Q3 earnings
+12.7% HMS.SS (HMS Networks SEK501.00, +56.40) -- Q3 earnings
+10.5% SF.SS (Stillfront Group SEK5.97, +0.57) -- Cantor Fitzgerald upgrade
+9.5% AERO.SW (Montana Aerospace CHF28.35, +2.45) -- Zürcher Kantonalbank upgrade
+9.5% MBB.GR (MBB €184.40, +16.00) -- prelim Q3 earnings
+9.3% FABG.SS (Fabege SEK89.10, +7.60) -- Q3 earnings
+8.2% GMS.LN (Gulf Marine Services £0.16, +0.01) -- 9M earnings
+8.2% INDT.SS (Indutrade SEK258.80, +19.60) -- Q3 earnings
+7.1% TXT.IM (TXT e-Solutions €34.90, +2.30) -- initiated buy at Kepler Cheuvreux
+6.8% YSN.GR (secunet Security Networks €208.00, +13.20) -- initiated buy at Berenberg
+6.3% TOM.NO (Tomra Systems NOK128.40, +7.60) -- to initiate a share buyback program of up to 400k shares
+6.3% ROVI.SM (Laboratorios Farmaceuticos Rovi, S.A. €64.05, +3.80) -- to collaborate with Roche for the manufacture of a new medicine currently in clinical development
+6.3% IOT.IM (SECO SpA €3.46, +0.21) -- initiated buy at Equita
+6.0% ITM.LN (ITM Power £0.83, +0.05) -- lunches ALPHA 50
+5.9% PACT.SS (Proact IT Group SEK93.70, +5.20) -- to acquire Consular for an initial consideration of DKK65M
+5.9% PLNW.FP (Planisware €21.40, +1.20) -- Q3 revenue
+5.6% ASSA.B.SS (Assa Abloy SEK362.50, +19.30) -- Q3 earnings
+5.5% SSH1V.FH (SSH Communications Security €4.24, +0.22) -- completes direct share issue to Leonardo initiating the strategic cooperation agreement between the two companies
+4.5% BPE.IM (BPER Banca €9.98, +0.43) -- contract
+4.4% EMBLA.DC (Embla Medical hf DKK32.90, +1.40) -- Q3 earnings
+4.3% SQZ.LN (Serica Energy £1.86, +0.08) -- notes production at Triton FPSO resumed in line with expectations at a limited level shortly after an issue on 8-Oct
+3.9% EPEN.SS (Ependion SEK122.60, +4.60) -- to acquire a minority stake in the UK-based software company RazorSecure Ltd. for £2.7M
+3.8% XPP.LN (XP Power £10.38, +0.38) -- Q3 trading update
+3.6% EXM.BB (Exmar NV €10.46, +0.36) -- shareholders to vote on 21-Nov on shareholder SAVEREX's proposals that company pays an extra dividend
+3.5% PHAR.LN (Pharos Energy £0.21, +0.01) -- commencement of Vietnam drilling programme
+3.4% SRC.LN (SigmaRoc £1.16, +0.04) -- Q3 trading update
+2.9% SGRO.LN (Segro £6.92, +0.19) -- trading update
+2.8% CINPHA.SS (Cinclus Pharma Holding SEK15.66, +0.42) -- notes FDA didn't raise concerns about its proposed strategy
+2.7% GETI.B.SS (Getinge SEK222.80, +5.90) -- Q3 earnings
Notable Decliners
-22.5% PTEC.LN (Playtech £2.67, -0.78) -- issues response to statement by Evolution Ab
-20.3% OVH.FP (OVHCloud €8.92, -2.27) -- FY earnings; changes its governance structure by reuniting the roles of Chairman and CEO; transferred hold at Stifel
-17.3% HPUR.NO (Hexagon Purus NOK1.77, -0.37) -- Q3 earnings
-14.2% INWI.SS (Inwido SEK154.10, -25.60) -- Q3 earnings
-13.3% TRLS.LN (Trellus Health £0.01, -0.00) -- issues update on cash runway, contract negotiations and fundraising discussions
-12.7% BULTEN.SS (Bulten SEK46.55, -6.75) -- Q3 earnings
-10.3% ARB.LN (Argo Blockchain £0.04, -0.00) -- expects LSE delisting to become effective from 8:00 GMT on 9-Dec-25
-10.0% CMCOM.NA (CM.com €4.00, -0.45) -- Q3 earnings
-8.9% ATO.FP (ATOS SE €51.74, -5.06) -- Q3 revenue
-7.1% HUSQ.B.SS (Husqvarna SEK47.83, -3.63) -- Q3 earnings
-5.9% GLPG.NA (Galapagos €27.88, -1.74) -- to wind down cell therapy business and pursue new transformational business development transactions with its available cash resources; anticipated to impact ~365 employees
-4.9% WJG.LN (Watkin Jones £0.30, -0.02) -- FY trading update
-4.7% SAVE.SS (Nordnet SEK274.20, -13.40) -- Q3 earnings
-4.0% RATO.B.SS (Ratos SEK37.60, -1.58) -- Q3 earnings
-3.4% GMAB.DC (Genmab DKK1,918.00, -68.50) -- commences tender offer for all outstanding common shares of Merus N.V.
-3.2% DGV.IM (Digital Value €28.80, -0.95) -- OEP Capital Advisors agrees to acquire a controlling interest (not lower than 57.81%) in company for €29/share
-3.0% UHR.SW (Swatch Group CHF171.70, -5.30) -- Sep Swiss watch data
-2.2% SINT.SS (SinterCast SEK109.00, -2.50) -- production update
-2.2% PON1V.FH (Ponsse €26.70, -0.60) -- Q3 earnings
-2.2% ERF.FP (Eurofins Scientific €62.50, -1.40) -- Q3 revenue
-1.7% BNP.FP (BNP Paribas €67.93, -1.17) -- Mediobanca downgrade
-1.3% NOVO.B.DC (Novo Nordisk DKK354.95, -4.85) -- to convene an EGM to elect new members of the Board of Directors; proposes new Chair
EU companies reporting tomorrow:
Earnings:
Benelux: Akzo Nobel (AKZA.NA), Randstad (RAND.NA)
DACHs: SAP (SAP.GR), VEF (0TX.GR), BAWAG Group (BG.AV)
France: Verallia (VRLA.FP), Icade (ICAD.FP), Amplitude Surgical (AMPLI.FP), Bastide Le Confort Medical (BLC.FP)
Norway: DNB Bank (DNB.NO), Aker BP (AKRBP.NO), Storebrand (STB.NO), Borregaard (BRG.NO), Norwegian Air Shuttle (NAS.NO),
Sweden: Svenska Handelsbanken (SHB.A.SS), Boliden (BOL.SS), Thule Group (THULE.SS), Alleima (ALLEI.SS), SSAB (SSAB.A.SS), Vimian Group (VIMIAN.SS), JM (JM.SS), MIPS (MIPS.SS), Bergman & Beving (BERG.B.SS), Arjo (ARJO.B.SS), Swedencare (SECARE.SS), HEBA Fastighets (HEBA.B.SS), Elanders (ELAN.B.SS), Midsona (MSON.B.SS), Corem Property Group (CORE.A.SS), B3 Consulting Group (B3.SS), Logistea (LOGI.A.SS), MAG Interactive (MAGI.SS), Viaplay Group (VPLAY.A.SS)
Denmark: Ringkjøbing Landbobank (RILBA.DC),
Finland: OLVI (OLVAS.FH), Relais Group (RELAIS.FH), WithSecure (WITH.FH)
Southern Europe: Saipem (SPM.IM), CIE Automotive (CIE.SM), Global Dominion Access (DOM.SM), The Navigator Co. (NVG.PL)
UK: Barclays (BARC.LN), Softcat (SCT.LN)
Other: Icelandair Group (ICEAIR.IR)
Trading Update:
Benelux: Heineken (HEIA.NA), Econocom Group (ECONB.BB)
DACHs: u-blox Holding (UBXN.SW)
France: Hermes (RMS.FP), Kering (KER.FP), Cie Generale des Etablissements Michelin (ML.FP), Carrefour (CA.FP), Ipsen (IPN.FP), Klepierre (LI.FP), Covivio (COV.FP), VusionGroup (VU.FP), Exail Technologies (EXA.FP), Voltalia (VLTSA.FP), Fnac Darty (FNAC.FP), Synergie (SDG.FP), Groupe Crit (CEN.FP), Verimatrix (VMX.FP)
Nordics: BioGaia (BIOG.B.SS)
UK: Reckitt Benckiser (RKT.LN), Fresnillo (FRES.LN), Aberdeen Group (ABDN.LN), Quilter (QLT.LN), Hochschild Mining (HOC.LN), International Personal Finance (IPF.LN), PensionBee Group (PBEE.LN)
CMD/Events: Rieter Holding (RIEN.SW), Rank Group (RNK.LN), Kainos Group (KNOS.LN), System1 Group (SYS1.LN)
Data:
Economics:
Finland Sep Unemployment Rate 9.1% vs consensus 9.1% and prior 9.3% (1:00ET)
Switzerland Sep Trade Balance CHF4.07B vs consensus CHF5.22B and prior revised CHF3.88B from CHF4.01B
Sep Swiss Watch Exports (3.1%) to CHF2.0B
UK Sep Public Sector Net Borrowing £20.20B vs consensus £20.5B and prior £17.96B
September Swiss Watch Exports (3.1%) to CHF2.0B
Markets:
WTI Crude (Nov 25): +$0.43 or +0.75% to $57.95
€-$ (0.0029) or (0.25%) to 1.1613
£-$ (0.0027) or (0.20%) to 1.3379
€-£ (0.0006) to 0.8678
S&P 500 +0.05%
Performance year-to-date
FTSE 100: +15.34%
DAX: +22.21%
CAC: +11.90%
MIB: +24.75%
Stoxx 600: +12.94%
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