EUROPEAN EQUITY OPEN: Firmer start ahead of ECB minutes

INDICES: At 08:15BST, Euro Stoxx 50 +0.57% at 3,847; FTSE 100 -0.19% at 7,573; DAX +0.39% at 14,207; CAC 40 +0.68% at 6,543; IBEX 35 +0.28% at 8,506; FTSE MIB 0.00% at 26,673; SMI +0.94% at 12,436. 

OPEN: European equities started the cash trading session on the front foot; futures were paring back the mild downside bias seen overnight in wake of the ‘hawkish’ FOMC meeting minutes, which allude to 50bps increment rate hikes at the coming meetings, though suggested a pace of balance sheet reduction a little below what markets were expecting. In Europe, the ECB’s meeting minutes will be eyed (primer here) for any signs about how rate hike sequencing could play out after asset purchases are concluded in Q3; note, the central bank's next confab is on April 14th. Meanwhile, data this morning showed German Industrial Output rising 0.2% M/M in February, a touch ahead of expectations, although the January data was revised down; in the UK, Halifax House Prices rose 1.4% M/M, though declined Y/Y after the prior month’s data was revised up. Ahead, Eurozone retail sales will be released later in the morning; in the US day, weekly initial jobless claims data and consumer credit data are released. On the speakers docket, Bank of England’s Pill will deliver remarks in the afternoon, while Fed’s Bullard (hawkish dissenter, voter), Fed’s Evans (dove, 2023), and Fed’s Bostic (2024) are on the slate. Our 'Day Ahead' calendar can be accessed here.

STOCK SPECIFICS: Energy names are in focus as the UK launches its new energy strategy, where atomic energy will be at its core, but the government is refusing to set targets, and will continue with North Sea oil and gas; Shell (SHEL LN) to write down USD 5bln in Q1 as it exits Russia, higher than previously expected, but said O&G trading will be boosted from higher energy prices. In deal news, Blackstone (BX) is reportedly looking into a bid for Atlantia (ATL IM); Aareal Bank (ARL GY) waived its one-year blocking period for renewed takeover offers, and Atlantic BidCo is prepared to submit a new offer; 888 Holdings (888 LN) to announce plans for a cash call to fund takeover of William Hill's non-US components. In results, Hella (HLE GY) confirmed its outlook for FY; Vinci (DG FP) purchased the remaining 70% of TollPlus; Entain (ENT LN) gaming revenue picked-up in Q1 as physical retail shop activity returned; Swiss Re (SREN SW) targets ROTE of 14% in 2024, which would be achieved via contributions from L&H Re and cost discipline; Airbus (AIR FP) updated on Q1 deliveries, which were +13% Y/Y. In board room news, Ericsson (ERICB SS) senior VP and head of Managed Services is to leave in August. In health care, EU Commission approves Sanofi's (SAN FP) Dupixent for children aged 6-11 with severe asthma. In broker news, Credit Suisse initiates LSE (LSE LN) and Euronext (ENX FP) with outperform; Julius Baer (BAER SW) upgraded at Deutsche Bank and at Societe Generale. Telia (TELIA SS) was downgraded at Handelsbanken.

NOTABLE MOVERS:

• 888 Holdings (888 LN) +18%: Earnings, reduced capital raise.


• Julius Baer (BAER SW) +3.1%: Upgraded at Deutsche Bank and SocGen.


• Gerresheimer (GXI GY) +1.9%: Earnings.


• Telecom Italia (TIT IM) +1.3%: Apax Enterprises interested.


• Shell (SHEL LN) -0.6%: To write-down more than expected on Russia exit.


• Hella (HLE GY) -1%: Results.

Our full European equity briefings for April 7th can be accessed here and here. Our 'Day Ahead' calendar can be accessed here.

07 Apr 2022 - 08:16- Fixed IncomeData- Source: Newsquawk