Opening
European equities traded in a divergent session on Thursday, with the CAC 40 leading continental gains at +0.75% and the FTSE 100 advancing 0.61% to 10,494.2, while the AEX bucked the trend as the sole decliner, slipping 0.51% to 1,070.0. The euro strengthened to 1.1617 against the dollar, a 0.20% move that stands as the session's most significant development, as a firmer single currency compresses the earnings translation of European multinationals with dollar-denominated revenues and raises the competitive pressure on export-heavy indices. For European investors with cross-border allocations, sustained euro appreciation at these levels warrants close attention to FX hedging costs and the earnings outlook for large-cap industrials and luxury goods groups reporting in the coming weeks.
Brent crude fell 4.75% to $79.22, easing inflationary pressure on European energy-intensive sectors but signalling demand-side concerns that weighed on oil majors including Shell and TotalEnergies. Gold's marginal 0.19% gain to $4,359.70 reflected contained safe-haven demand, suggesting markets have not yet priced in a broader risk-off shift across European equities.
Key stock move
Ericsson (OMX Nordic) led losses across European equities, falling 4.19% to 109.75, while UniCredit surged an equal and opposite 4.17% to €77.68, making the Italian lender and the Swedish telecoms group the session's sharpest movers in either direction.
Macro–Equity Bridge
Brent Crude −4.75% at $79.22 → TotalEnergies (TTE.PA), BP (BP.L): sharp oil slide compresses upstream realised prices, offsetting any refining margin relief EUR/USD +0.20% at 1.1617 → ASML (ASML.AS): dollar-denominated equipment revenues worth less on euro repatriation, amplifying existing −1.91% session loss UniCredit +4.17% → UniCredit (UCG.MI), ING (INGA.AS): market reprices Italian banking profitability as capital return expectations lift sector multiples LVMH +1.50% → LVMH (MC.PA), Kering (KER.PA): CAC 40 outperformance at +0.75% anchored by luxury demand resilience lifting heavyweight consumer discretionary names
What to watch today
Brent crude trades at $79.22, keeping energy stocks in focus ahead of the European open as traders assess demand signals from China's latest industrial output data. The euro holds at 1.1617 against the dollar, a level last sustained in early 2022, which will pressure exporters in the DAX and CAC 40 reporting dollar-denominated revenues. Watch for any divergence in ECB speakers today following last week's rate decision, with the euro's strength complicating the inflation-versus-growth calculus for Frankfurt policymakers.