EUROPEAN EQUITY UPDATE: Europe sees varying gains whilst NQ outperforms stateside ahead of a risk-packed week

Analysis details (10:05)

• European equities kicked off the week with gains across the board (Euro Stoxx 50 +1.4%; Stoxx 600 +1.2%) as the region catches up to the Wall Street rally on Friday, where Tech gains were spearheaded by Apple (+0.8% pre-market) post-earnings. US equity futures trade with a positive bias following some choppiness heading into the European open, but nonetheless, the NQ (+0.6%) remains the relative outperformer vs the ES (+0.2%), RTY (+0.3%) and YM (Unch) heading into month-end and a risk-packed week which consists of several Fed speakers (alongside ECB and BoE), ISM PMIs and the US jobs report. Back in Europe, bourses see gains to varying degrees with the AEX (+1.7%) outpacing amid gains in ASML (+4.3%) which takes impetus from the broader semiconductor rally following Friday’s Tech performance state-side. The CAC 40 (+0.9%) and DAX 40 (+1.3%) similarly see its STMicroelectronics (+2.4%) and Infineon (+3.3%) topping their respective indices. Conversely, the UK’s FTSE 100 (+0.3%) sees its gains capped by underperformance in Basic Resources as base metals falter, with Rio Tinto (-2.3%), Anglo American (-2.1%) and Glencore (-0.8%) among the biggest losers. On that note, FTSE traders should keep an eye on Anglo-Russian after the UK threatened Russian oligarchs in the event of an invasion into Ukraine; Russia hit back by stating threats could backfire as British firms are shareholders in several Russian companies. European sectors are mostly positive with the aforementioned Basic Resources the laggard whilst Tech outperforms, and no real overarching theme at present. Banks are supported by Italy, with Italian banks' index rising to the highest since May 2018 after President Mattarella was re-electe, removing near-term uncertainty. In terms of induvial movers, Vodafone (+3.9%) is firmer after reports Cevian Capital has built an undisclosed stake in the Co., whilst Vodafone also announced it is to design chips with Intel alongside other vendors for its OpenRAN networks. Ryanair (-1.0%) gave up earlier gains post-earnings. Saipem (-30%) plumbed the depths after issuing a profit warning - citing a "significant deterioration" in margins due to the pandemic and higher raw material costs. Similarly, Casino (-11%) is being offered after the firm cut its guidance.

31 Jan 2022 - 10:05- EquitiesResearch Sheet- Source: Newsquawk