[MARKET ANALYSIS] European equities are broadly firmer; Basic Resource names lag on the back of tumbling metal prices

European equities have opened mostly on a firmer footing. Strength comes amid a rebound in the DAX 40 (+0.7%) after yesterday's SAP-induced pressure, a narrative added to by strong Adidas (+5.2%) earnings.
European sectors are mostly in the green, leading are Banks (+1.3%), Travel & Leisure (+1.0%) and Technology (+0.8%). Banks have been underpinned by news that Kevin Warsh is likely to be the next Fed Chair, which has bolstered global yields. Furthermore, the sector benefits from gains in Caixabank (+4.0%) after the Co. announced that it expects NII to grow in 2026. For Tech, gains in Hexagon (+4.5%) after the Co. reported strong Q4 earnings. Though it is also worth highlighting that Tech is likely benefiting from a pairing of Thursday's pressure in the sector. At the bottom of sectors are Basic Resource (-3.4%), Energy (-0.6%) and Real Estate (-0.1%). Basic Resources has been weighed down by pressure in metal prices, whilst energy has been pinned down by crude as the complex gives back gains.
Movers this morning include Lloyds (+2.0%), with the UK bank announcing a share buyback program of up to GBP 1.5bln, further underpinning the banking sector. On the downside, a broker downgrade for Antofagasta (-6.9%) adds to the bias from base metals.
In stark contrast to their European counterparts, US equity futures are lower across the board; ES -0.9%, NQ -1.1%. Unlike the strength seen in the USD and yields after the Warsh news, equities have taken a dive. ING noted that Warsh has historically hawkish views, especially when compared to other top picks; see Fixed/FX for more details.
Looking ahead in the US, speakers include Miran, Musalem, Bowman and Waller. M/M PPI data is also set to be released. On an equity-specific level, we expect earnings from SoFi, American Express, Verizon, Chevron, Exxon and Colgate.