EUROPEAN EQUITY UPDATE: Gains across stocks and sectors mostly in the green ahead of the main Fed event

Analysis details (10:14)

Equities in Europe kicked off the day on the front foot with futures extending pre-cash open despite a distinct lack of news flow at the time, with the overall market mood somewhat fragile. This followed a mostly positive APAC performance as the upbeat sentiment rolled over from an upbeat Wall Street session. US equity futures are also firmer to the tune of around 1% across the most liquid contracts. The upside comes ahead of the Fed Jackson Hole Economic Symposium, which will likely be alongside several impromptu Fed officials doing the rounds on business TV. Sticking with central banks, the ECB minutes are poised to be released, but any policy signals towards the September meeting will likely be deemed as stale given the fast-paced nature of inflationary developments within the Eurozone. On the data front, German Ifo spurred very little sustained action across stocks, with economists warning that a recession remains on the cards, and almost half the firms surveyed intend to hike prices in the coming three months. Ahead on the calendar US revisions to Q2 GDP are due alongside quarterly PCE and weekly IJC. Back in Europe, a broad-based positive performance is seen across the majors (Euro Stoxx 50 +0.6%; Stoxx 600 +0.7%). Sectors are mostly in the green with no overarching theme. Energy leads the charge amid price action in oil, whilst Retail sits on the other end of the spectrum. In terms of movers, SAP (-0.3%) is subdued after peer SalesForce (-6.5%) cut its outlook. Chipmakers in Europe are broadly firmer despite Nvidia (-3.3% pre-market) stating its revenue was lower than its outlook issued in May due to weaker gaming revenue. As a reminder, Tesla (+2.1% pre-market) sees its 3-for-1 stock split today and trades around USD 300 in the pre-market.

25 Aug 2022 - 10:14- EnergyData- Source: Newsquawk