European equities: cautiously positive on the day, but the bull case is tactical and the bear case is structural.
Research published this morning expects a firmer DAX open, pointing to a late-session recovery yesterday from around 25,050 to a 25,304 close on rumors of US-Iran de-escalation that pushed oil lower, plus a run of positive corporate updates. One tactical call puts 25,400 in view at the open.
On banks, a camp of analysts favors select European lenders, citing an improving regulatory backdrop and possible consolidation. A separate published view frames Europe as a potential winner from post-US-midterm rotation, if investors diversify away from US equities.
The contrarian thread is structurally bearish: Europe growing roughly 1-1.5% versus 2.5-3% in the US, lagging in AI, and facing a stronger dollar.
On single names, researchers highlight Adidas after record quarterly sales and profit and raised full-year guidance (full results October 29), Friedrich Vorwerk on a lifted outlook, and Deutsche Börse's strong results as supportive for the index.