EUROPEAN EQUITIES UPDATE: Europe trades mixed whilst US futures drift higher ahead of key data

Analysis details (10:11)

Equities in Europe have trimmed the modest broad-based downside seen at the cash open in the run-up to the US CPI metric and Fed speak. The post-CPI pricing of another 75bp move by the FOMC in September will likely drive the stock market, whilst Fed commentary will also be eyed to see how high the Fed is willing to go, and for how long - full Newsquawk preview available here. US equity futures have been gaining since the European cash open, in summer conditions, and with no major headlines this morning to drive the price action. Back in Europe, it is worth being mindful of the low water levels in Germany’s Rhine River from a trade flow perspective. Reports suggested that the Rhine River will be effectively impassable at a key point on August 12th – which will likely hinder large flows of diesel and coal at a time Russian gas flows are uncertain, and after flows via the southern arm of the Druzhba pipeline were halted. In terms of the broader stocks performance, Europe sees a mixed picture (Euro Stoxx 50 +0.2%; Stoxx 600 Unch.) and sectors are now mostly firmer with no overarching theme. Insurance, Travel & Leisure, and Energy lead the charge while Healthcare and Food & Beverages reside as the current laggards – in turn pressuring the Swiss SMI (-0.5%). In terms of individual movers, Royal Mail (-2.3%) is softer as strikes would be materially loss-making for the Co. within the UK for FY22-23. Sika (-1.4%) declined at open as the UK CMA decided to conduct an in-depth examination in the UK market related to Sika’s planned acquisition of MBCC Group. Meanwhile, ABN AMRO (+2.7%), Vestas Wind Systems (+9.9%), Aviva (+8.3%), Ahold Delhaize (+7.1%), Tui (+0.9%), and Evotec (-9.9%) are all moving on the back of earnings. 

10 Aug 2022 - 10:11- Fixed IncomeData- Source: Newsquawk