EUROPEAN EQUITY OPEN: Stocks rise after the open following positive leads from Wall Street and overnight APAC trade

INDICES: At 08:12GMT,  Euro Stoxx 50 +0.18% at 3,933; FTSE 100 +0.22% at 7,493; DAX +0.35% at 14,523; CAC 40 +0.18% at 6,671; IBEX 35 +0.22% at 8,506; FTSE MIB +0.00% at 26,822; SMI +0.27% at 12,236. 

OPEN: Shares opened on the front foot, although futures have been edging off highs seen in the premarket, after positive leads on Wall Street and in the overnight APAC session. European shares are seen printing a sixth straight day of gains, and some desks note that there has been a feeling that, amid the global bond sell-off (as the Fed is expected to aggressively raise rates and tighten policy this year), investors have been taking money out of bonds and into equities. Once again, there are no signs of any geopolitical breakthroughs in the Russia-Ukraine war; President Biden will be in Europe on Thursday to meet with regional partners. Elsewhere, inflation data released in the UK showed an upside surprise, and will likely continue compelling the MPC to tighten policy ahead; BoE Governor Bailey is due to speak around midday where he will have a chance to respond; the UK Spring Statement is expected at 12:30GMT. Elsewhere, it is another heavy day of central bank speak, with everyone’s favourite hawk – Fed’s 2022 voter Bullard – to give further remarks. The ECB’s newswire regular Lagarde will also give another set of comments today. Data-wise, EU consumer confidence metrics are released in the afternoon, while the DoE will announce weekly energy inventory data (a private inventory survey Tuesday reported Crude -4.3mln, Cushing +0.6mln, Gasoline -0.6mln, Distillate -0.8mln). On the supply front, the US will auction 20-yr debt. Full Day Ahead here.

STOCK SPECIFICS: Big tech will be in focus today as the EU unveils its Digital Markets Act. In energy, BP (BP/ LN) expected to Friday announce an additional GBP 1bln for new EV charging points in the UK. French government reportedly seeing backlash after allowing Renault (RNO FP) to continue operations in Russia. In deal news, UK reportedly moving closer to approving takeover of Ultra Electronics (ULE LN) by PE-owned Cobham; Rio Tinto (RIO LN) may need to raise its offer for Turquoise Hill, according to Macquarie. Elsewhere, Swissmedic temporary approval of MorphoSys' (MOR) Minjuvi.

NOTABLE MOVERS:

• Umicore (UMIB BB) +2.6%: Upgraded at Citi.


• Morphosys (MOR GY) +2.6%: Swissmedic temporary approval of Minjuvi.


• DiaSorin (DIA IM) +2.1%: Upgraded at Jefferies.


• BP (BP/ LN) +1.6%: Expected to announce additional funds for new UK EV charging points.


• Air Liquide (AI FP) +1.5%: Buyback news.


• Beazley (BEZ LN) -1.4%: Downgraded at HSBC.


• Reckitt Benckiser (RKT LN) -2.6%: Downgraded at Jefferies.


• Lanxess (LXS GY) -2.6%: Downgraded at Goldman Sachs.

Our full European equity briefings for March 23rd can be accessed here and here.

23 Mar 2022 - 08:12- EquitiesResearch Sheet- Source: Newsquawk