EUROPEAN EQUITY OPEN: Stocks open with modest gains ahead of today's key US CPI data

OVERNIGHT: On Wall Street, stocks trended lower on Tuesday with losses led by the Nasdaq 100, as Technology an underperformed, though stocks were generally lower across the board. Our US market wrap can be accessed here. Fiscal talks between President Biden and Congressional leaders did not yield any significant progress, but talks will continue throughout the week, and Biden will meet leaders again on Friday. In the APAC session, stocks were mostly lower as the region digested a slew of earnings updates and following the weak handover from Wall Street. Aussie shares saw underperformance in financials, energy and telecoms but with losses stemmed by defensives and as participants mulled over the details of the recent federal budget. China stocks conformed to the global downbeat mood, while a report which said Chinese GDP growth was likely to pick up in Q2 due to policy support did little to spur risk appetite. Our Asia wrap is here.

EUROPEAN OPEN: European equities open with mild gains ahead of today’s key US CPI report (our preview is below in the day ahead section). In Europe, German final inflation data for April was unrevised, data released today showed. The ECB speak in premarket trade has leaned somewhat dovish, with the ECB's German representative Nagel suggesting that the central bank's rate hike policy may be moving into the final stretch, even though there is further to go; this theme has been echoed by ECB's Stournaras, who thinks that rate rises will be over this year.

STOCK SPECIFICS: ABN AMRO (ABN NA) saw higher than expected Q1 profits, helped by lending income. Credit Agricole (ACA FP) earnings topped expectations on boost to trading sales. Alstom (ALO FP) sees higher margins ahead, but has delayed mid-term targets. Asos (ASC LN) saw a H1 loss with shoppers retrenching. Continental (CON GY) sees earnings rise 35% on strong quarter for automotive. E.ON (EOAN GY) sees hitting the upper end of its 2023 outlook after strong Q1. Tui (TUI GY) sees summer demand lifting 2023 profits. In M&A, a consortium led by Pierre Lassonde has proposed purchasing Teck Resources’ (TECK) coal unit, with Lassonde saying Teck wants to move forward and have something done in 8-12 weeks; Glencore (GLEN LN) USD 23bln offer was rejected in April, though the company continues to express an interest in the unit. Meanwhile, Software AG (SOW GY) confirmed receipt of another non-binding offer from Bain's Rocket Software, but said it was not a superior offer, and it supports Silver Lake's offer. Our full equity briefings for May 10th can be accessed here and here.

DAY AHEAD:

10 May 2023 - 08:10- Fixed IncomeData- Source: Newsquawk

InflationCentral BankDataFixed IncomeFederal ReserveConsumer Price IndexGermanyUnited StatesECBYannis StournarasWeekly US Earnings EstimatesEconomic CommentaryPresidentEquitiesDiversified BanksBanksBanks (Group)Bank SpeakerEOAN.GYGLEN.LNSOW.GYCON.GYUS Market WrapACA.FPALO.FPEuropeNetherlandsSilverItalyIndustrial OutputRiksbankGiltsFederal CorpBrentDISGoldman Sachs Group Inc/TheYieldGSFOMCABN.NAASC.LNCore CorpDoveRepresentativeGross Domestic ProductABNCredit Agricole SAACAAlstom SAALOContinental AGCONEOANTUI AGGlencore PLCGLENSoftwareEuropean OpeningABN Amro Bank NVAEX 25 IndexUSDAsian SessionHighlightedResearch SheetEU SessionFranceAsiaChinaEURUnited KingdomGBP

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