EUROPEAN EQUITY OPEN: Equities shrug-off downbeat pre-market mood, trade higher ahead of lots of central bank speak

INDICES: At 08:12, Euro Stoxx 50 +0.4%, FTSE 100 +0.2%, DAX +0.6%, CAC 40 +0.3%, IBEX 35 +0.4%, FTSE MIB +0.6%, SMI -0.2%.

OPEN: European shares are higher after the Tuesday open, with futures rebounding from the downbeat pre-market mood, which followed further hawkish commentary from Fed Chair Powell on Monday, and continuing tensions between Russia/Ukraine, where the prospect of any breakthrough in peace talks appears slim, for now. Sentiment is perhaps being supported after a constructive APAC session. Oil prices continue to the upside, with major benchmarks adding around USD 2/bbl. In terms of the day ahead geopolitical developments will be eyed ahead of US President Biden’s visit to Europe on Thursday. There are a lot of central bank speakers today, including Fed bigwig Williams (permanent voter), Daly, Mester; money markets now see rates rising to 2.00-2.25% by the end of this year in wake of the hawkish Powell; the Fed last week forecast a rise to 1.75-2.00%. ECB heavyweights are also on the slate, with Chief Economist Lane and President Lagarde due to make remarks (money markets are now pricing 50bps worth of rate tightening through the end of this year). Elsewhere, the Hungary Central Bank rate decision will be eyed for EMFX traders, and supply from Germany for the debt traders. Full Day Ahead here. 

STOCK SPECIFICS: Qatar Airways denied it owed Airbus (AIR FP) USD 220mln after failing to accept deliveries of A350s. In deal news, Carrefour (CA FP) is said to be in talks to sell its Taiwanese unit for USD 1.9bln; Ipsos (IPS FP) is to take 20% minority share in CIESMORI. Just Eat (JET LN) and McDonald’s (MCD) announce long-term global strategic partnership; Leonardo (LDO IM) will reportedly sell its communications unit for USD 450mln. In energy news, Rolls Royce (RR/LN) and EDF (EDF FP) are in focus as UK aims to speed up a shift towards nuclear power; Shell (SHEL LN) is reportedly reconsidering its decision to withdraw investment from the Cambo oil field. In results, Kingfisher (KGF LN) profits jumped, helped by the pandemic but has seemingly failed to impress investors; Adidas (ADS GY) will be eyed after a solid report from competitor Nike (NKE), which rose 5.3% after US hours following top- and bottom-line beats; Air Liquide (AI FP) announced a new strategic plan for 2025, where it aims for an acceleration in annual sales growth by 5-6%. Elsewhere, Orpea (ORP FP) defends itself against new "damning" claims.

NOTABLE MOVERS:

• Bechtle (BC8 GY) +2.5%: Upgraded at Stifel.


• Just Eat Takeaway (JET LN) +2.3%: Long-term partnership with McDonalds (MCD).


• Adidas (ADS GY) +2.1%: Sympathy with Nike (NKE) results.


• Leonardo (LDO IM) +2%: Reportedly to sell comms unit for USD 450mln.


• Partners Group (PGHN SW) +1.7%: Results.


• TP ICAP (TCAP LN) +1.6%: Upgraded at Shore.


• Marks & Spencer (MKS LN) -2.6%: Downgraded at BNP.


• ITV (ITV LN) -1%: Downgraded at BNP.


• Kingfisher (KGF LN) -9.9%: Results.

Our full European equity briefings for March 22nd can be accessed here and here.

22 Mar 2022 - 08:16- Fixed IncomeResearch Sheet- Source: Newsquawk