Oct 07 ,2026
Synopsis:
European indices have ended in negative territory, except for Denmark and Swizterland. French asset selloff the big ongoing development today with country's stocks and bonds under pressure. Far-right 2027 presidential candidate Le Pen's pledged government spending cuts prompted relief in OATs after yields hit multi-decade highs yesterday. However, Le Pen's proposal viewed as challenging to deliver among analysts and the press. At same time, Finance Minister Lescure said government ready to bypass Parliament if budget talks stall, with red lines at a 5% of GDP deficit cap and no growth-damaging measures. Bank of France chief played down need for ECB intervention, but said situation for French bonds is serious. Middle East headlines remain mixed with focus on improving flows, surging costs and pickup in kinetic activity (Iran, Houthis). Houthi attacks damaged Saudi airports. Also some notable pickup in Ukraine and Russian tensions with both striking each other's energy facilities
On the macro-front, German industrial production beat expectations, up 2% m/m. UK house prices stalled in September versus a 0.1% gain expected. Also in UK, Chancellor Healey eyes £1B bill rebate as January energy cap threatens to erase VAT cut. In trade developments, EU weighing China hybrid-car import cap
In corporate news, energy stocks in focus, with Repsol (REP.SM) reporting Q3 upstream production numbers, while Shell (SHEL.LN) and Equinor (EQNR.NO) releasing Q3 updates ahead of results. Amongst automakers, Porsche (P911.GR) presented its strategy 'Sportwagenschmiede '35' focusing on medium-term ambitions at CMD today, aiming for group sales of €41-45B in the medium term. Elsewhere, Pennon Group (PNN.LN) announced a strategic update with a detailed operational reset from its new CEO, a ~£550M fully underwritten rights issue, and a rebased dividend. In M&A, NLFI announced a fifth trading plan to further reduce its stake in ABN AMRO (ABN.NA)
Digest:
Sectors - STOXX Europe 600:
Outperformers: Health Care +1.80%, Telecom +1.52%, Persnl & HHold Goods +0.63%, Food & Beverage +0.44%, Chemicals +0.03%, Media +0.01%, Retail (0.20%), Autos & Parts (0.33%), Oil & Gas (0.44%), Insurance (0.75%), Real Estate (0.82%), Travel & Leisure (0.95%), Utilities (0.96%)
Underperformers: Banks (3.31%), Construct & Mtls (2.19%), Ind Goods & Svcs (2.03%), Basic Resources (1.97%), Technology (1.89%), Financial Svcs (1.63%)
Macro:
EU seeks to cut trade deficit with China in talks with Beijing (Reuters)
France's Battered Bonds Are Starting to Tempt Bargain Hunters (BBG)
France and Germany say diesel promise to Trump won't require new stock release (Politico)
Musk welcomes German backing for Tesla driver assistance tech as group chases EU approval (Reuters)
Bill for new Italian election law passes confidence tests before final vote (Ansa)
What we know about the suspected plague case in Russia (FT)
Company news:
Notable Gainers
+14.8% AVON.LN (Avon Technologies £21.65, +2.82) -- FY trading update
+13.0% ENRO.SS (Eniro Group SEK34.30, +3.95) -- SEK 2.50/sh extraordinary divi and new distribution policy
+10.2% NNIT.DC (NNIT DKK37.30, +3.45) -- weighs divestment of sub SCALES A/S
+5.7% NKR.NO (Nekkar NOK14.85, +0.80) -- initiated buy at Pareto
+5.6% NCC.B.SS (NCC SEK186.20, +9.70) -- divests Industry business area at an EV of SEK8.2B
+5.3% ALK.B.DC (ALK-Abello DKK219.00, +11.00) -- Nordea upgrade
+3.9% BOWL.LN (Hollywood Bowl Group £2.59, +0.10) -- FY trading update
+3.9% VITR.SS (Vitrolife SEK94.95, +3.60)
+2.2% CLAS.B.SS (Clas Ohlson SEK436.40, +9.60) -- Sep sales
+2.2% FRVIA.FP (Forvia €9.91, +0.21) -- JV agreement with Anand Group; BofA upgrade
+0.3% P911.GR (Porsche €42.37, +0.14) -- presents its strategy 'Sportwagenschmiede '35' focusing on medium-term ambitions at CMD today; aims for group sales of €41-45B in medium term
Notable Decliners
-20.1% PNN.LN (Pennon Group £3.67, -0.91) -- strategic update; £550M fully underwritten rights issue
-9.2% HSW.LN (Hostelworld Group £0.93, -0.09) -- Q3 tradin statement
-8.7% ALVIO.FP (Valerio Therapeutics €0.51, -0.05) -- H1 earnings
-8.5% BESI.NA (BE Semiconductor Industries €175.80, -16.30) -- UBS downgrade
-7.2% WAWI.NO (Wallenius Wilhelmsen NOK165.20, -12.80) -- private placement of 17.2M-shares at NOK 168/sh
-6.8% FME.GR (Fresenius Medical Care €40.51, -2.75) -- CEO Helen Giza to step down
-6.1% INCH.LN (Inchcape £6.50, -0.42) -- UBS downgrade
-5.8% IFX.GR (Infineon Technologies €60.84, -3.73)
-4.5% STAN.LN (Standard Chartered £21.63, -1.02) -- partecipates in OKX Hong Kong FinTech fundraise
-4.4% ABN.NA (ABN AMRO Bank €40.91, -1.86) -- NLFI announces fifth trading plan to further reduce stake
-4.4% HSBA.LN (HSBC Holdings £14.14, -0.64) -- FT articles
-2.7% DWNI.GR (Deutsche Wohnen €15.40, -0.42) -- Kepler Cheuvreux downgrade
-2.7% FUM.LN (Futura Medical £0.00, -0.00) -- Eroxon "Intense" Home User Test results
-2.1% MBG.GR (Mercedes-Benz Group €39.83, -0.87) -- Q3 sales
-1.6% EQNR.NO (Equinor NOK403.50, -6.50) -- releases update ahead of Q3 results: Q3 MMB result expected to be above guidance of $400M
-1.5% FIA1S.FH (Finnair €4.37, -0.07) -- Sep traffic
-0.5% AVOL.SW (Avolta CHF42.90, -0.20) -- Avolta's Hudson secures new 20-year duty-free contract at Seattle-Tacoma International
-0.4% REP.SM (Repsol €28.69, -0.12) -- trading statement
-0.1% SHEL.LN (Shell Plc £36.47, -0.03) -- Q3 update note
EU companies reporting tomorrow:
Earnings:
DACHs: Suedzucker (SZU.GR), Agrana Beteiligungs (AGR.AV)
France: Wallix Group (ALLIX.FP)
Nordics: Admicom (ADMCM.FH)
UK: Tesco (TSCO.LN), Volution Group (FAN.LN), Next 15 Group (NFG.LN)
Trading Update:
Benelux: Fagron (FAGR.BB)
France: GenSight Biologics (SIGHT.FP)
Nordics: TGS-NOPEC Geophysical Co. (TGS.NO), Kid (KID.NO)
UK: UNITE Group (UTG.LN)
CMD/Events: Schouw & Co (SCHO.DC), Verbio (VBK.GR), doValue (DOV.IM), Faron Pharmaceuticals (FARN.LN) R&D Day, Vodafone Group (VOD.LN) business update call, IG Group Holdings (IGG.LN) business update call
Macro-economic updates expected tomorrow:
Germany Aug trade balance, Finland Aug industrial production, UK Sep house price balance - RICS, Ireland Sep CPI
Data:
Economics:
Germany Aug Industrial Production +2.0% m/m vs consensus +0.5% and prior (1.1%)
UK Sep Lloyds (formerly Halifax) House Price Index 0.0% y/y vs consensus (0.2%) and prior (0.4%)
France Aug Trade Balance (€6.1B) vs consensus (€6.5B) and prior revised (€6.6B) from (€6.7B)
Norway Aug Manufacturing Production (0.4%) m/m vs consensus +0.1% and prior +0.7%
Sweden Sep Preliminary CPI +1.1% y/y vs consensus +1.3% and prior +0.3%
Markets:
WTI Crude (Nov 26): +$0.05 or +0.06% to $89.49
€-$ (0.0072) or (0.64%) to 1.1188
£-$ (0.0066) or (0.50%) to 1.3209
€-£ (0.0012) to 0.8470
S&P 500 (0.41%)
Performance year-to-date
FTSE 100: +5.31%
DAX: +2.51%
CAC: (4.67%)
MIB: +11.19%
Stoxx 600: +6.43%
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