[MARKET ANALYSIS] European equities are mostly firmer, with the CAC 40 outperforming amidst gains in EssilorLuxottica

European equities are generally stronger today, with the CAC 40 seeing notable gains, particularly due to a broker upgrade for EssilorLuxottica.

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[MARKET ANALYSIS] European equities are mostly firmer, with the CAC 40 outperforming amidst gains in EssilorLuxottica

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  • European equities have opened mostly firmer, not much macro news driving the upside. However, the CAC 40 (+0.5%) outperforms, boosted by EssilorLuxottica (+2.4%) following a broker upgrade at HBSC.
  • European sectors are mixed/positive. Leading sectors are Utilities (+1.1%), Health Care (+0.9%) and Construction (+0.7%). Utilities has found itself at the top amidst an uptick in Engie’s (+1.2%) as well as pull back gains from prior day losses where the sector finished near the bottom pile. Healthcare has been underpinned by an uptick in Orion (+10.6%) after the Co. provided strong FY26 guidance. Near the bottom of the pile, Media (-1.0%), Energy (-0.5%) and Travel (-0.5%) lag, with the latter underpinned due to losses in Air France (-3.5%) and Lufthansa (-2.2%) due to broker downgrades.
  • Movers this morning include Diploma (+1.5%) after a positive 2026 trading update. AstraZeneca (+2.0%) has seen upside in its shares after the Co. announced plans to acquire Modella AI, further giving the healthcare sector a boost. On the downside Vistry (-7.8%) has seen its shares slide after house sales drop in 2025.
  • US equity futures are mostly lower in the pre-market, but the Russell 2000 (+0.2%) mildly outperforms vs peers. In tech, the US approved Nvidia (NVDA) selling H200 AI chips to China, subject to sufficient US supply, security assurances and non-military use; it was later reported that China's authorities reportedly told customs agents this week that Nvidia's H200 chips are not allowed to enter China.
  • Looking ahead, highlights include US PPI (Nov), Retail Sales (Nov), Atlanta Fed GDP, Fed's Beige Book. Fed speakers include Paulson, Kashkari, Williams, Miran, Bostic and earnings from Wells Fargo, Citi, Bank of America. 
Context

The mixed sector performance highlights a positive shift in utilities and healthcare, with momentum potentially building as key U.S. data releases approach, including PPI and retail sales, which may influence market sentiment ahead.

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