EUROPEAN EQUITY UPDATE: A slow start to the final session of the week

Analysis details (09:29)

European equities (Eurostoxx 50 -0.2%), trade with little in the way of firm direction following an equally mixed lead from Asia. Despite the minor pullback for European stocks, the Eurostoxx 50 remains on track to close the week out with gains of around 0.6% with incremental macro newsflow relatively light for the session thus far. Stateside, futures are a touch softer (ES -0.2%) after the S&P 500 and Nasdaq notched a fourth consecutive win streak yesterday. Focus ahead for the session will fall upon the June NFP report whereby the rate of payrolls growth is expected to cool again in June, but once again, traders will be paying close attention to the wage metrics within the data to help shape expectations about whether the Fed will raise rates by either a 50bps or a 75bps increment at the July FOMC meeting. Additionally, NY Fed’s influential President Williams is also due to speak today; he will be participating in a monetary policy discussion, but will likely discuss the jobs data too. Sectoral performance in Europe is mixed with outperformance in Energy names following yesterday’s strong performance in underlying crude benchmarks. To the downside, Basic Resources names lag as metals prices retreat from yesterday’s advances which were spurred by reports that the Chinese Finance Ministry is set to allow local governments to borrow a further USD 220bln via special bonds in H2 to boost infrastructure spending. In terms of individual movers, EDF (+5.4%) sits at the top of the Stoxx 600, whilst Leonardo (+4.2%) shares have been bolstered by a broker upgrade at Oddo Securities. To the downside, TAG Immobilien (-12.2%) is the laggard within the Stoxx 600 after resolving a EUR 200mln capital increase whilst Uniper (-5.6%) continues to be plagued by concerns over Russian supplies of gas to Europe. Finally, Citi has refreshed its highest conviction ideas list whereby it has added “Buy-rated AB-InBev, Bayer, Compass and DSV and Sell-rated Terna.”

08 Jul 2022 - 09:27- Fixed IncomeImportant- Source: Newsquawk