EUROPEAN EQUITY UPDATE: Choppy trade for equities as markets seek the next catalyst

Analysis details (09:20)

A choppy session thus far across equities as the region looks for direction following the mixed APAC handover and after the post-ISM losses seen on Wall Street which resulted in the SPX closing just under 4,000. The calendar is light for today with macro developments also quiet thus far in the European morning. US equity futures move between mild losses and mild gains in search of the next catalyst, with a relatively broad-based performance seen across the ES (+0.2%), NQ (+0.2%), YM (+0.2%), and RTY (+0.1%). Back in Europe bourses are mixed (Euro Stoxx 50 Unch; Stoxx 600 -0.1%) with the breadth of the market narrow. Analysts at Citi say “Markets have recovered and European traditionals have re-rated from c8.5x to 12x. This is in line with the historical average, but we see risks to the downside, given weak fundamentals… Despite weak flows, asset managers have been helped by the market recovery and AuM has risen by +10% in US$ terms (vs -11% in 3Q22).” Sectors in Europe are mostly lower with a slight defensive tilt – with Utilities, Media, Telecoms, Food & Beverages and Optimised Goods in the green, whilst Energy, Autos, Retail and Financial services reside at the foot of the bunch, albeit with the breath of the market again narrow. In terms of individual movers, Credit Agricole (-0.9%) will no longer finance new oil and gas extraction projects. Elsewhere, Credit Suisse's (-3.0%) Chair has been out again reassuring investors that the bank is "definitely stable". In health care, Fresenius Medical (-1.2%) CEO Carla Kriwet will be replaced after just two months in the role due to "strategic differences," CFO Helen Giza to take the CEO role. In telecoms, Vodafone (-1.0%) shareholder Xavier Niel calls for the company to streamline and offload assets to cut debt. In cyclicals, EssilorLuxottica (+0.3%) and Swarovski announced a 10-year licensing agreement.

06 Dec 2022 - 09:20- Research Sheet- Source: Newsquawk