EUROPEAN EQUITY OPEN: Shares modestly firmer as key geopolitical meetings get underway; Flash PMIs and heavy central bank slate ahead

INDICES: At 08:11GMT, Euro Stoxx 50 +0.26% at 3,879; FTSE 100 +0.14% at 7,471; DAX +0.29% at 14,325; CAC 40 +0.35% at 6,604; IBEX 35 +0.40% at 8,362; FTSE MIB 0.00% at 26,569; SMI +0.06% at 12,107. 

OPEN: Following a cautious APAC session, European equities have started the day constructively as key NATO talks get underway (primer here), and as Biden’s third trip to Europe as US President gets going. Russia’s invasion of Ukraine has now entered its fourth week, and the prospects of peace remain distant despite the sides continuing to talk (EU diplomat Borrell said Russia seeks to isolate Ukraine from the sea and has no interest in negotiating until then; we therefore keep a close eye on developments in the strategicially important Mariupol area). Biden will formally announce new sanctions today. Aside from geopolitics, there will be a focus on central banks, with the SNB (preview) and Norges Bank (preview) rate decisions, while the SARB and Banxico will also announce policy updates (previews for these can be found in our week ahead). The morning will also see flash PMI data for March released. The US day will see weekly initial jobless claims data, final GDP data for Q4 and durable goods. The Fedspeak schedule is once again pretty heavy, with the hawkish Governor Waller due, 2023 voter and dove Kashkari, 2023 voter and dove Evans, and 2024 voter Bostic (who seems hawkish on normalisation, but relatively dovish on rate hikes). Other speakers include ECB’s Schnabel and Elderson, BoE's Mann. The US will sell 10yr TIPS in the afternoon. Full Day Ahead here.

STOCK SPECIFICS: In deal news, Qatar SWF is selling its USD 1.1bln Glencore (GLEN LN) stake; Casino (CO FP) reportedly mulls offloading part or all its 73% GreenYellow stake. In results/updates, Next (NXT LN) cut guidance due to the outlook abroad; Daimler Trucks (DTG GY) adj. EBIT rose significantly. In corporate updates, AstraZeneca (AZN LN) CALLA Phase III trial for Imfinzi did not achieve statistical significance. In broker moves, British American Tobacco (BATS LN) upgraded at JPMorgan, IAG (IAG LN) downgraded at Deutsche Bank, Rightmove (RMV LN) upgraded at RBC, Enel (ENEL IM) upgraded at Jefferies.

NOTABLE MOVERS:

• Daimler (DTG GY) +4.1%: EBIT up significantly.


• Enel (ENEL IM) +1.6%: Upgrade at Jefferies.


• Casino (CO FP) +1.0%: Mulls offloading GreenYellow stake.


• AstraZeneca (AZN LN) flat: Imfinzi update.


• L’Oreal (OR FP) -1.3%: PT cut at Jefferies and Berenberg.


• Glencore (GLEN LN) -3.2%: Qatar SWF exiting stake.

Our full European equity briefings for March 24th can be accessed here and here.

24 Mar 2022 - 08:12- EquitiesData- Source: Newsquawk