EUROPEAN EQUITY OPEN: Indices lower following Wednesday's short-squeeze. The busy day ahead features Ukraine/Russia talks, US CPI, ECB, EU meeting

INDICES: At 08:16GMT, Euro Stoxx 50 -1.3%, FTSE 100 -0.7%, DAX 40 -1.1%, CAC 40 -1.1%, FTSE MIB -1.2%, IBEX 35 -0.4%, SMI 0.0%. Sectors are mixed: Real Estate gains, while Energy is lagging. 

EUROPEAN OPEN: European indices opened around the flat mark following Wednesday’s bounce higher, but have subsequently tilted further into the red. Wednesday’s upside was being attributed to a short-squeeze amid some optimism surrounding the Russia-Ukraine war; talks between the Russian and Ukraine foreign ministers in turkey are to get under way around the European cash open, and will likely be the catalyst for price action ahead of this afternoon’s ECB policy announcement (preview here) and US CPI (expected to tick higher again in February, primer here). Remarks from UAE’s energy minister will be encouraging OPEC to raise output further, he said on Wednesday, which also helped ease some of the pressure in crude oil prices – and also resulted in European 5y5y inflation swap forwards coming down after recent highs; European policymakers have been concerned that higher prices due to the pandemic and exacerbated by geopolitics could weigh on consumer demand as the bloc enters the post-COVID recovery phase, which has also led to some concerns about stagflation. There will also be attention on EU meeting in Versailles, where the focus will be on defence and energy. (Full Day Ahead calendar here).

STOCK SPECIFICS: In Russia related updates, Allianz' (ALV GY) Pimco risks losing billions if Russia defaults; Deutsche Bank (DBK GY) and Credit Suisse (CSGN SW) reported limited Russia exposure, while the latter also slashed exec pay last year; Carlsberg (CARLB DC) suspended earnings guidance, is reviewing strategic options for Russia business; Eni (ENI IM) suspended new energy procurement contracts from Russia. In earnings, Hugo Boss (BOSS GY) gave an upbeat view for 2022; Hapag-Lloyd (HLAG GY) reported encouraging results, noted significantly improved freight rates, expects earnings to be very strong in H1, and sees supply chains easing in H2; Vivendi (VIV FP) wrote down Telecom Italia (TIT IM) stake, reported profits doubled. In M&A, Royal Boskalis Westminster (BOKA NA) received a EUR 4.2bln cash offer.

NOTABLE MOVERS:

• Boskalis (BOKA NA) +29.4%: Receives offer.


• BooHoo (BOO LN) +9%: Trading update, expects to meet guidance.


• Eurazeo (RF FP) +6.7%: Results.


• Balfour Beatty (BBY LN) +4.2%: Results.


• Vivendi (VIV FP) +2.1%: Results, profits doubled.


• Hapag-Lloyd (HLAG GY) +1.4%: Results, outlook.


• Hugo Boss (BOSS GY) -3.2%: Results.


• Hannover Re (HNR1 GY) -3.2%: Results.

NOTE: Our full European equity briefings for March 10th can be accessed here and here.

10 Mar 2022 - 08:17- EquitiesData- Source: Newswires