EUROPEAN EQUITY UPDATE: Equities trend higher but fresh catalysts remain light thus far

Analysis details (10:25)

Equities in Europe trade with mild gains across the board (Euro Stoxx 50 +1.1%; Stoxx +1.1%) – as the region saw futures drift higher heading into the European cash open in tandem with a recovery in the global market. US equity futures also trend higher with a relatively broad-based performance seen across the majors: ES (+0.6%), NQ (+0.6%), YM (+0.5%) and RTY (+0.5%) as fresh fundamental catalysts remain light ahead of a string of diplomatic meetings. In terms of the geopolitics diary, EU leaders will conduct a summit in Versailles, Russia President Putin and Belarusian President Lukashenko will meet in Russia, US President Biden is to speak later (10:15EST/15:15GMT), the UN Security Council will be conducting discussions on bioweapons, and the three-day Antalya Diplomacy Forum kicked off in Turkey. The Russia-Ukraine war will likely dictate each of these meetings. On that note, Goldman Sachs downgraded the US growth forecast - "to reflect higher oil prices and other drags on growth related to the war in Ukraine”, with the 2022 US GDP forecast lowered to 2.9% from 3.1%. Back in Europe, the majors are firmer to varying degrees as the DAX 40 (+1.3%) is bolstered by relatively broad-based gains across its cyclical heavyweights, whilst the AEX (+0.4%) lags its peers amid losses in a few Dutch large-caps. Delving deeper into sectors, cyclicals are clearly favoured over defensives at the time of writing, with Energy and Retail among the top performers whilst Utilities and Food & Beverages sit at the bottom of the bunch. Tech and Banks meanwhile have been fluctuating and interchanging amid choppy actions in yields. Movers today are largely influenced by the macro environment, but in terms of some individual names, DAX-heavyweight Bayer (+2.2%) is firmer after applying for additional indication of darolutamide in Japan. Telecom Italia (+8.5%) is among the top gainers as sources suggested Co. advisers see the Co's value reaching as much as EUR 27.8bln if its asset separation plans achieve its goal. Leonardo (+11%) shares soar post-earnings and with added tailwinds from its military status. Deutsche Bank (-0.8%) conforms to the sectoral performance as it fails to gain traction from a broker upgrade at Citigroup.

11 Mar 2022 - 10:24- EnergyResearch Sheet- Source: Newsquawk