EUROPEAN EQUITY OPEN: Softer start after similar APAC/Wall St. leads, Chinese CPI below exp. before US inflation

Analysis details (08:05)

European bourses have commenced the mid-week open with a negative bias, Euro Stoxx 50 -0.4%. Pressure is broad based, no standout outperformer/laggard. For reference, US futures are under modest pressure, ES -0.2%, but remain well within Tuesday’s parameters as the complex and markets broadly await the US inflation print. Back to Europe, sectors are pressured with tech underperforming given the US read across, while some of the more defensively inclined names are firmer – though, no overt bias is present. Action which follows a largely subdued APAC session which took impetus from a pressured US handover where tech stocks in particular lagged after the Micron update in European hours; as such, NQ -1.2% underperformed (currently, -0.2%). As mentioned, for the session ahead focus is primarily on US CPI though we also look to commentary from BoE’s Pill (spoken recently) and 2023 Fed voters Evans & Kashkari who are both due to speak after the inflation print and thus will be closely scrutinised for a snap reaction and any fresh guidance around September. Newsquawk CPI preview is available here.

10 Aug 2022 - 08:05- Research Sheet- Source: Newsquawk