EUROPEAN EQUITY OPEN: Stocks open on the front foot as banking fears continue to abate; Swiss bank UBS (UBSG SW) is getting a new CEO, while chipmaker Infineon (IFX GY) raised its guidance

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  OVERNIGHT: On Wall Street, stocks were sold on Tuesday, with much of the downside led by large caps, as Tech and Communications underperformed amid rising yields (see here). In Asia, stocks were mostly positive albeit with most of the major indices rangebound following the uninspired lead from Wall St, amid a lack of fresh macro drivers and heading into quarter-end (see here). Hong Kong markets significantly outperformed as tech stocks surge on Alibaba’s plan for a six-way split, which spurred speculation that other tech peers could follow suit. US-Sino relations remain fraught, with tensions over Taiwan President Tsai’s planned transit through the US, and after the Biden administration added five Chinese companies to the entity list for allegedly aiding China's repression of Uyghurs. In Australia, CPI data showed a sharp slowdown in February, to 6.8% Y/Y from 7.4%, beneath the consensus 7.1%, which will leave the bias to the downside within the more widely-viewed Q1 CPI data, and could even see the RBA pause when it meets next week.


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  EUROPEAN OPEN: European equities open on the front foot, which is still being framed in the context of easing fears around the global banking sector, though many analysts continue to caution about the outlook while recession fears are building. Data from Germany showed consumer sentiment rising in April to -29.5 from -30.6, slightly above the consensus -29.0; the breakdown showed that willingness to buy and income expectations rose in the latest survey, though the business cycle expectations slipped, which resulted in Gfk suggesting that a full recovery was not in sight anytime soon. Meanwhile, French consumer confidence pared to 81.0 in March, in line with the consensus, and down one point vs February.


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  STOCK SPECIFICS: In stock specifics, Swiss Re (SREN SW) Chairman Sergio Ermotti will return to the helm of UBS (UBSG SW), and has been appointed new group CEO, effective April 5th; Credit Suisse (CSGN SW) bankers and clients are reportedly being courted by other Swiss rivals. Chipmakers are in focus after Micron (MU) said inventory issues have peaked, while Germany's Infineon Technologies (IFX GY) raises its Q2 revenue guidance. In deals, Nestle (NESN SW) proposes BRL 1.7bln acquisition of Brazil's BRF's pet food division, below the BRL 2bln being sought for the unit. In autos, Mercedes-Benz Group (MBG GY) third largest holder KIA is reportedly looking to sell 20mln shares at a discount vs Tuesday's close, which would lower its stake to 5% from 6.8%, while Volvo Car's (VOLCARB SS) CEO noted the challenges of the US Inflation Reduction Act. In retail, Next (NXT LN) saw profits rise in the quarter, but its outlook remains cautious. Our full equity specific briefings for March 29th can be accessed here and here.

DAY AHEAD:

• Our full interactive calendar can be accessed here; a pdf version can be accessed here.


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  EUROPEAN DATA/SPEAKERS: There is little on the data slate of note. From the UK, monthly consumer credit and mortgage data is due from the BoE. BoE hawk Mann will also be delivering remarks today, although she has spoken a couple of times already in wake of the recent MPC meeting. From the ECB, the markets head Schnabel is due to make remarks at the NABE on “orienting policy”.


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  NORTH AMERICAN DATA/SPEAKERS: Fed’s supervisory chief Barr will attend a second day of testimonies on Capitol Hill on the regulatory response to the recent bank failures, today appearing before the House Financial Services Committee. On the data front, pending home sales data for February will be released. For the BoC watchers, the Canadian central bank’s deputy governor Gravelle will speak.


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  ENERGY: Data from the API reportedly showed a surprise draw for crude stocks, according to Citi: Crude -6.1mln (exp. +0.1mln), Cushing -2.4mln, distillates +0.55mln (exp. -1.5mln), gasoline -5.9mln (exp. -1.6mln).


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  SUPPLY: The US Treasury will conclude this week’s note supply with a sale of USD 25bln of 7yr notes, and will also issue USD 25bln 2yr FRN. The Portuguese will sell between EUR 0.75-1.0bln of 2032 and 2035 debt.

29 Mar 2023 - 08:10- EquitiesData- Source: Newsquawk