EUROPEAN EQUITY OPEN: Stocks open constructively ahead of ECB policy announcement

INDICES: At 08:10BST,  Euro Stoxx 50 +0.29% at 3,839; FTSE 100 -0.24% at 7,563; DAX +0.11% at 14,092; CAC 40 +0.37% at 6,567; IBEX 35 +0.24% at 8,638; FTSE MIB +0.00% at 26,973; SMI +0.14% at 12,396.  

OPEN: European indices mixed/generally higher on the front foot ahead of a busy day, before market closures on Friday and Monday for Easter (Newsquawk desk schedule here, for your information). Russia-Ukraine progress remains elusive. The focus in Europe will be on the ECB policy announcement; the press conference will offer Lagarde an opportunity to provide a stock-take on how the EZ is responding to the Ukraine crisis. Traders will be mindful of any hints of an early end to APP and a potential 2022 rate hike (preview here). There is also a CBRT rate announcement today (primer here). Elsewhere, in the afternoon, US retail sales, weekly initial jobless claims, prelim University of Michigan Sentiment, import/export prices, business inventories; Canada manufacturing sales, wholesale trade. Full day ahead calendar here.

STOCK SPECIFICS: In banking, Barclays (BARC LN) reportedly facing scrutiny around pension schemes, could take an early GBP 1.25bln hit. In deal news, Blackstone (BX) and Benettons offer to acquire Atlantia (ATL IM) for EUR 23/shr (vs prior close 21.89); Credit Agricole (ACA FP) reportedly has no plans to gain control of Banco BPM (BAMI IM); Voestalpine (VOE AV) sold majority stake in Voestalpine Texas to ArcelorMittal (MT NA); TotalEnergies (TTE FP) and Eneos study sustainable aviation fuel production at Eneos Negishi; Balfour Beatty (BBY LN) was awarded a USD 698mln US Army contract. In industrials, Mercedes Benz (MBG GY) EV vehicle broke the 1,000km mark on a single charge. In corporate updates/results, Ericsson (ERICB SS) earnings missed on contract delays and Russia provisions, and warns of possible fine over Iraq scandal; TomTom (TOM2 NA) reported a slightly wider-than-expected loss though confirmed FY22 guidance; Ashmore (ASH LN) affirmed FY22 outlook. Hays (HAS LN) reiterates FY operating profit guide; Hermes (RMS FP) sales topped expectations; Publicis (PUB FP) topped expectations by noted uncertainties ahead; National Grid (NG/ LN) sees FY underlying EPS modestly higher than previous guidance; Wizz Air (WIZZ LN) flags wider FY22 net loss. In health care, Genmab (GMAB DC) and AbbVie (ABBV) announced topline results for Epcoritamab, companies to engage global regulatory authorities to determine next steps; Sanofi (SAN FP) announced positive results from a study evaluating rilzabrutinib; UK approves Valneva's (VLA FP) COVID vaccine. In broker updates, Bunzl (BNZL LN) downgraded at Berenberg, Adyen (ADYEN NA) initiated with Overweight at Piper Sandler, Repsol (REP SM) upgraded at Goldman Sachs.

NOTABLE MOVERS:

• Hermes (RMS FP) +4.3%: Results.


• Wizz Air (WIZZ LN) +4.1%: Trading statement.


• Voestalpine (VOE AV) +2.9%: sold majority stake in Voestalpine Texas.


• Publicis (PUB FP) +2.2%: Results.


• TomTom (TOM2 NA) +2.2%: Results.


• Barclays (BARC LN) -0.5%: Scrutiny around pension schems.


• Banco BPM (BAMI IM) -1.2%: Credit Agricole (ACA FP) has no plans to gain control.


• Ericsson (ERICB SS) -4%: Results, scandals.

Our full European equity briefings for April 14th can be accessed here and here. Our 'Day Ahead' calendar can be accessed here.

14 Apr 2022 - 08:11- Research Sheet- Source: Newsquawk