EUROPEAN EQUITY OPEN: Indices open lower as Europe's bank earnings season gets underway; tech titans MSFT and GOOG to report after the US close today

OVERNIGHT: On Wall Street, stocks were mixed on Monday with the Nasdaq-100 underperforming, as the tech sector came under pressure ahead of key earnings later this week (including MSFT, GOOG, META and AMZN), while a soft Dallas Fed Manufacturing survey sparked growth fears. Our full US market wrap can be accessed here. APAC stocks were mostly lower after the mixed performance Stateside; conditions were also thinner than normal amid closures in Australia and New Zealand for ANZAC Day. In Japan, BoJ Governor Ueda repeated that the central bank sees it appropriate to maintain YCC and easy monetary policy given the current economic, price and financial developments. KOSPI failed to hold on to early gains after mixed South Korean GDP data. Hang Seng and Shanghai Comp weakened with Hong Kong pressured by underperformance in tech, although losses in the mainland were stemmed following another firm PBoC liquidity injection and reports that China urged banks to cut deposit rates. See our Daily European Opening News note for more, here.

EUROPEAN OPEN: Earnings are in focus as the European bank reporting season gets underway. On that note, UBS (UBSG SW) reported profits fell over 50% as it increases provisions for RMBS charges in the US, though management reported inflows of USD 42bln in the quarter, with its wealth management unit seeing inflows of USD 28bln. Banco Santander SA (SAN) net profits rose in Europe, offsetting weaker performance in US and Brazil. We recap on the major earnings in our stock specific section, below. Earnings will stay in focus amid a heavy US reporting slate today, where tech giants Microsoft (MSFT) and Alphabet (GOOG) will publish their Q1 metrics after the US close; from the US, figures are also due from DHR, PEP, UPS, GE, RTX, MCD, NEE, VZ, TXN, and V today. More domestically, ECB chief economist Lane gave an interview to French press, where he said current data suggests the central bank needs to continue raising interest rates again at the May meeting and beyond, adding that further hikes will be dependent on data. ECB's supervision chief Enria is due to speak later today. Meanwhile, on the data slate, UK PSNB ex banks widened to GBP 21.530bln in March (exp. 20.0bln, prev. 13.322bln); Pantheon Macroeconomics said that revisions to prior prints left FY borrowing well below the OBR's forecast. For the Scandies, and ahead of this week's Riksbank rate decision (+50bps hike expected on Wednesday), PPI data cooled to 3.5% Y/Y in March (prev. 9.3%).

STOCK SPECIFICS: It has been a very busy morning for European corporate updates; we recap all the major stories in full in our daily European equity briefings, which can be accessed here and here. In financials, UBS Group AG (UBSG SW) net profits fell 52%, missing analyst expectations, as the Swiss bank sets aside USD 665mln to cover costs of US RMBS costs; reported inflows of USD 42bln in the quarter, with its wealth management unit seeing inflows of USD 28bln. Banco Santander SA (SAN SM) net profits rose in Europe, offsetting weaker performance in US and Brazil. In the consumer sector, Nestle SA (NESN SW), which holds the largest weighting in the Stoxx 600 index, said that price hikes helped the Swiss multinational food and drink processing conglomerate to top quarterly sales estimates. Of note for Richemont (CFR SW) and Swatch (UHR SW), Swiss Watch Exports rose +13.8% Y/Y in March (prev. +12.2%). AB Foods (ABF LN) – H1 profits fell, and it maintained FY guidance despite cautious consumer. In autos, Daimler Truck (DTG GY) earnings rose, topping expectations, amid sales surge, with execs noting strong demand. Automakers will also note Hyundai Motor (005380 KS) Q1 profits surged above expectations on a weak KRW and SUVs. In health care, Novartis (NOVN SW) raised FY outlook after higher prescriptions, and said planned Sandoz spin-off on track for H2. Bayer (BAYN GY) reaffirmed its 2023 sales and profits outlook. In materials, Anglo American (AAL LN) Q1 copper production rose 28%, rough diamond production was flat, while steel-making coal production was +59%; keeps copper production guidance unchanged. Akzo Nobel (AKZA NA) net profits fell, though still beat the consensus view, while execs note macro uncertainties.

DAY AHEAD:

25 Apr 2023 - 08:10- Fixed IncomeData- Source: Newsquawk

MSFTUnited StatesCentral BankGOOGECBBen BroadbentAndrea EnriaDataFederal ReservePEPUPSGERTXMCDNEEVZTXNVMETABrentBoJAMZNGross Domestic ProductBanksUBS AGUBSGBanco Santander SASANDHRMSFT.USAKZA.NABAYN.GYAAL.LN005380.KSUS Market WrapABF.LNSAN.SMGOOG.USSAN.USUSDEuropeCopperNestle SANESNCFRSwatch Group AG/TheABFDaimler AGDTGHyundai Motor CoABBVMAAMGNINTCTMUSCVXXOMConsumer Price IndexBoCFranceMicrosoft CorpPBoCMonetary PolicyGovernorEuropean OpeningNovartis AGNOVNBayer AGBAYNAnglo American PLCAALPPIAKZAConfederation of British IndustryBoERiksbankBase RateConsumer ConfidenceConference BoardPurchasing Manager IndexFixed IncomeGOOGLTMOBALLYCATMRKBMYCMCSASPGIUnited KingdomHighlightedEU SessionResearch SheetAsian SessionAZNHong KongGBPAustraliaKRWGermanyEURJapanNew ZealandChina

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