EUROPEAN EQUITY OPEN: Stocks open on the front foot; US CPI data ahead and lots of ECB speakers

INDICES: At 08:09BST, Euro Stoxx 50 +1.05% at 3,592; FTSE 100 +0.66% at 7,291; DAX +0.61% at 13,618; CAC 40 +1.16% at 6,188; IBEX 35 +0.75% at 8,200; FTSE MIB +0.00% at 25,171; SMI +0.16% at 11,560. 

OPEN: European indices have opened higher on Wednesday following a mixed session on Wall Street, although trading conditions became more constructive overnight amid further speculation of policy easing in Q2, as well as positive signs on the COVID front after there were zero community transmissions in half of Shanghai’s districts. Data overnight showed Chinese CPI inflation rising (higher food and fuel prices, but core was pretty much unchanged), although factory gate inflation cooled. Final inflation data out of Germany this morning were unrevised. Attention will be on the US inflation metrics, released later today, amid an expectation that annual price pressures will ease again. Elsewhere, there is a heavy slate of ECB speakers today, including Elderson, Lagarde, Centeno, Vasler de Cos, Schnabel. Our 'Day Ahead' calendar can be accessed here.

STOCK SPECIFICS: In healthcare, the Biden administration urged SCOTUS to reject a Bayer (BAYN GY) appeal, which could open it up to billions of dollars in lawsuits. Roche (ROG SW) said a study evaluating tiragolumab plus Tecentriq did not meet its co-primary endpoints. AstraZeneca (AZN LN) said new Nirsevimab data reinforces efficacy. In travel and leisure, Air France (AF FP) said it was seeing a revival of business travel in some regions. TUI (TUI LN) expects profitability in 2022 amid travel demand, expects strong summer travel. In corporate earnings, Allianz (ALV GY) to book a provision in Q1 of EUR 1.9bln, will impact net income by EUR 1.6bln after tax. Ahold Delhaize (AD NA) beat expectations in Q1, and raised its FY EPS view. Alstom (ALO FP) profits topped expectations but cash flows were negative. Brenntag (BNR GY) confirmed FY outlook. Eiffage (FGR FP) revenue rose, outlook maintained. Elis (ELIS FP) sales rose, and it affirmed guidance. EON (EOAN GY) core profits declined due to Swedish and Eastern European grid business, backed FY outlook. Evotec (EVT GY) reported higher sales but lower EBITDA, and confirmed its outlook. Continental (CON GY) rising prices weighed on net income, which halved. ITV (ITV LN) reported a robust Q1, adding that ITVX was on track for Q4 launch. K+S (SDF GY) topped estimates in Q1 on higher fertiliser prices. Swiss Life (SLHN SW) reported fee income rising in Q1. Telefonica Deutschland (O2D GY) said Q1 started strongly, and confirmed its outlook. Leoni (LEO GY) EBIT before special items swung to a loss. Pirelli (PIRC IM) reported higher profits, but lowered its margin forecast for the year. Salvatore Ferragamo (SFER IM) Q1 results were hit by China, but CEO promises a quick turnaround. Thyssenkrupp (TKA GY) beat expectations in Q2, lifted its sales view, but lowered its FCF outlook.  In deal news, Activist Bluebell Capital reportedly calls on Saint-Gobain (SGO FP) to reshape its business, replace Chair amid an underwhelming performance. Zurich Insurance (ZURN SW) is reportedly in talks to sell its USD 21bln German life insurance policies to Cinven's Viridium Group. Swedish Match (SWMA SS) confirmed Philip Morris (PM) was to acquire the company for SEK 106/shr in cash. Tesla (TSLA) CEO said it is highly unlikely that it would buy another carmaker, while he did not see merit in combining Tesla, SpaceX, and other operations under one umbrella; separately, Musk said Volkswagen (VOW3 GY) was making the most progress on EVs after Tesla. In buyback news, Iberdrola (IBE SM) launches a share buyback programme. Pershing Square Holdings (PSH NA) announced a USD 100mln share buyback. UniCredit (UCG IM) announced a share buyback programme of up to EUR 1.58bln. In notable broker updates, Credit Suisse (CSGN SW) downgraded at Berenberg, Fortum (FUM1V FH) upgraded at UBS, IAG (IAG LN) reiterated at UBS.

Our full European pre-market equity briefings for May 11th can be accessed here and here. Our 'Day Ahead' calendar can be accessed here.

11 May 2022 - 08:10- Data- Source: Newsquawk