EUROPEAN EQUITY UPDATE: Mixed trade for Europe as bourses struggle for direction

Analysis details (09:39)

European equities (Eurostoxx 50 +0.1%) are a mixed bag with little in the way of firm direction across bourses. The DAX (+0.4%) is the modest outperformer but this appears to be more of a case of attempting to claw back yesterday’s heavy losses (-2.0%) which saw the index as the region’s clear underperformer, as opposed to any outright positivity. Fresh macro developments have been light aside from commentary by ECB’s Schnabel who noted that a recession alone would not be enough to control inflation, adding that inflation concerns from before the July hike have not been alleviated and a number of indicators point to a de-anchoring of inflation expectations. The comments have provided little in the way of traction in the equity complex with gyrations more evident in the fixed income space as traders continue to re-price ECB rate hike expectations in a more hawkish direction. Stateside, futures are a touch softer (ES -0.2%, NQ -0.3% and RTY -0.2%) and extending on yesterday’s downside with a more dovish-than-expected FOMC minutes release unable to provide much in the way of reprieve as traders place greater emphasis on next week’s Jackson Hole summit, which will be followed by the August NFP report (Sept 2nd) and CPI data (Sept 13th) ahead of the September confab on the 21st. Sectors in Europe are mixed with not much in the way of breadth as Autos, Energy and Chemicals outperform, whilst Banks, Personal Goods and Retail lags. In terms of individual movers, it's been an exceptionally quiet morning of newsflow thus far. Adyen (-11.6%) sits at the foot of the Stoxx 600 after H1 results fell short of expectations. Geberit (-4.0%) is also suffering post-H1 results with the Co. impacted by increasing raw materials prices.

18 Aug 2022 - 09:39- Fixed IncomeData- Source: Newsquawk