EUROPEAN EQUITY OPEN: Contained open marginally differing from a firmer handover/indication from futures, all eyes on multiple key risk events ahead

INDICES: At 08:10GMT, Euro Stoxx 50 -0.1%, FTSE 100 -0.1%, DAX 40 -0.2%, CAC 40 -0.3%, FTSE MIB +0.2%, IBEX 35 -0.1%, SMI Unch.

Sectors are mixed, with magnitudes only slightly wider than cash bourses themselves. At the top-end, lies Basic Materials and Tech while Financials lag modestly and Energy is impaired as crude benchmarks ease from highs.

OPEN: European cash bourses are essentially unchanged, differing modestly from the marginally firmer lead from European futures after APAC gains on the back of strong Wall St. handover with focus firmly on geopolitics ahead of key events. The session comes amidst the backdrop of markets awaiting the call between US President Biden and Chinese President Xi at 09:00EDT/13:00GMT. Ahead of which, US Secretary of State Blinken said that US President Biden is to make it clear to Chinese President Xi that China will bear responsibility for any actions it takes to support Russia's aggression. From a Chinese perspective, Global Times, citing an official, writes China will never accept US threats/coercion, will urge the US to fulfil President Biden's commitment not seeking a new Cold War, changes in China's system, a stronger alliance against China. Furthermore, progress in calls between Ukraine and Russia seems lacking whilst recent reports note that Russia has set up a no-fly zone over the Donbass region of Ukraine. On the speakers front, we have Fed voters Bowman and Waller speaking in addition to non-voters Barkin and Evans. Reminder, today is quad witching – full schedule for the session available here.

STOCK SPECIFICS/MOVERS:

• 
  Ted Baker (TED LN) +16.5%: Sycamore has confirmed source reports that it is mulling a possible cash offer for Ted Baker


• 
  Wendel (MF FP) +3.2%: post-earnings, which lifted YY.


• 
  Anglo American (AAL LN) +1.7%: Partnership with EDF, for renewable energy. Also on the back of broader strength in Basic Materials.


• 
  BP (BP/ LN) -0.9%: Moving with the easing in crude benchmarks from highs.


• 
  Deutsche Lufthansa (LHA GY) -1.2%: Downgraded to ExaneBNP


• 
  EDF (EDF FP) -1.8%: Easing in crude benchmarks from highs; announced a share capital increase for over EUR 3.1bln. Reminder, Co. saw upside yesterday amid further commentary from French officials around potential nationalisation, EDF was not specifically mentioned though.

Our full European equity briefings for March 18th can be accessed here and here.

18 Mar 2022 - 08:15- EquitiesResearch Sheet- Source: Newsquawk