EUROPEAN EQUITY OPEN: Stocks start the week with very modest gains

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  OVERNIGHT: On Wall Street, Stocks and bonds finished lower Friday after the weaker-than-expected retail sales, stronger-than-expected bank earnings, and amid Fedspeak (US Market Wrap can be accessed here). Overnight, APAC stocks were mostly higher though some gains were capped in the absence of any major macro catalysts from over the weekend, and as participants brace for key data (including activity data) and earnings this week; China's PBoC maintained its MLF rates, which analysts took as a sign of confidence in the economy, helping lift the mood in some pockets; ING said this was an important signal that Q1 GDP data due Tuesday will not be too soft, although the Dutch bank does not expect it to be particularly strong either (see APAC wrap here).


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  EUROPEAN OPEN: European indices start the week with modest gains following a catalyst-light weekend, and ahead of a week with key data releases and earnings reports. M&A is in focus, with parts of Teck Resources (TECK) being eyed by Materials industry peers. In the video gaming sector, Sega (SGAMY) is to acquire Angry Birds creator Rovio (ROVIO HE). John Wood Group PLC (WG LN) has agreed to enter talks with Apollo, pressing for a firm offer. Meanwhile Aliaxis Group of Belgium has made a USD 2bln offer for Finland’s Uponor (UPN HE). (Our full European equity briefings for April 17th can be accessed here and here). The day ahead is light for data, but there are a few speakers of note, while some of the smaller, regional banks in the US will report earnings. G7 Foreign ministers are meeting in Japan.

DAY AHEAD:

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


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  EUROPEAN DATA/SPEAKERS: The data slate is thin, with only final Italian inflation data for March due. On the speaker's slate, ECB President Lagarde will speak on the theme of international economics, with a text to be released. BoE's Cunliffe will speak at a global summit on innovation in finance, with a text to be released. On the supply front, the EU will sell EUR 2bln of 2029 and EUR 2bln of 20233 bonds; Germany, France and Netherlands will sell bills; BoE will conduct its medium-term Gilt sale operation.


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  NORTH AMERICAN DATA/SPEAKERS: The Empire Fed manufacturing report for April will help shape initial expectations of what the more widely followed ISM data will look like when it is released early May; the consensus expects the NY Fed gauge to improve at the headline level, but there will of course be a lot of focus on the sub-components too. On the housing front, the NAHB Housing Market Index for April will be released after the open. Fed 2024 voter Barkin will speak at the Richmond Association for Business Economics; his remarks last week were a little more hawkish than expected, noting that although the peak of inflation was in the rear-view, there was still more work to do to bring inflation down. House Speaker McCarthy will speak at the NYSE on the Debt Limit; WaPo reported that he and other Republicans are moving toward a framework that could raise the debt ceiling into 2024, and allow for USD 2tln in spending. On the close, the monthly TIC flow data for February is due. 


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  US CORPORATE EARNINGS: Some of smaller banks will be reporting today, with M&T Bank Corp. (MTB), Charles Schwab (SCHW), and State Street (STT) on deck; our full earnings expectation sheet can be accessed here. Notable companies reporting this week include: JNJ, BAC, GS, LMT, PLD, NFLX on Tuesday; ASML, ELV, ABT, MS, TSLA, IBM on Wednesday; BX, TSM, T, PM, AXP, UNP on Thursday; PG on Friday; our full Weekly US Earnings Estimates can be accessed here.


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  ENERGY: WTI May 2023 options expire.


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  WEEK AHEAD: The week ahead includes CPI data from Canada, Japan, NZ, UK; PBoC LPR, China activity data; Minutes from the ECB, RBA. Our week ahead preview can be accessed here.

17 Apr 2023 - 08:10- Fixed IncomeData- Source: Newsquawk