European Equities Expected to Open Lower Amid Uncertain Economic Prospects

Strategic Insights -

European equities are set to open lower, with investors awaiting the release of eurozone trade balance data and UK economic growth figures. The US Federal Reserve's Beige Book suggested little change in economic growth in October, but the outlook for future growth is uncertain, with mixed prospects across regions.

The US Federal Reserve's Beige Book, released in October, showed that economic activity changed little since the previous report in September, with three Districts reporting slight to modest growth, five reporting no change, and four noting a slight softening. The outlook for future economic growth varied by District and sector, with some contacts expecting an uptick in demand over the next 6 to 12 months. However, many others continued to expect elevated uncertainty to weigh down activity.

Key Takeaways:

  • The US Federal Reserve's Beige Book suggests little change in economic growth in October, but the outlook for future growth is uncertain.
  • The eurozone trade balance data and UK economic growth figures are expected to influence European equities in the near future.
  • The US Federal Reserve is urging investors to be cautious, citing mixed prospects across regions.
  • US President Donald Trump has authorized covert CIA action against Venezuela and is considering strikes against alleged drug cartels.
  • The Trump administration is expected to lay off thousands of federal workers during the government shutdown.
  • US Treasury Secretary Scott Bessent has slammed Beijing's rare earth export curbs as "China versus the world," vowing that Washington and its allies will "neither be commanded nor controlled."
  • BlackRock, Nvidia, and Microsoft are acquiring data centre specialist Aligned Data Centers from Macquarie for approximately USD40 billion.
  • Johnson & Johnson faces legal action from thousands of people who claim the company knowingly sold asbestos-contaminated talcum powder in the UK.
  • Salesforce.com has announced its new long-term revenue target, expecting earnings above USD60 billion by 2030.
  • EssilorLuxottica has acquired Ikerian, a health technology company, operating under the RetinAI brand.
  • United Airlines expects to report record fourth-quarter operating revenue after third-quarter earnings beat expectations.
  • Santos has reported strong financial and operational performance for the third quarter of 2025, though down year-on-year.

Statistics:

  • USD40 billion: The approximate value of the acquisition of Aligned Data Centers by BlackRock, Nvidia, and Microsoft.
  • 10%: The predicted compound annual growth rate of Salesforce.com revenue from 2026 to 2030.
  • 4.5%: The Australian unemployment rate in September, the highest level since November 2021.
  • 0.6%: The increase in the Commonwealth Bank of Australia's household spending insights index in September.
  • 4.2%: The rise in Vinci Airports traffic in the third quarter of 2025 compared to a year ago.
  • USD1.13 billion: The revenue of Santos in the third quarter of 2025, down 11% from last year's USD1.27 billion.
  • 89-91 million barrels: Santos' revised full-year production guidance.

Sources:

  • (Alliance News)
  • (US Federal Reserve's Beige Book)
  • (Washington Post)
  • (Federal News Agency)
  • (CNBC)
  • (Fortune)
  • (Bloomberg)
  • (Journal of Commerce)
  • (Reuters)