EUROPEAN EQUITY UPDATE: Mundane pre-NFP Friday trade with the UK also observing Jubilee Bank Holiday

Analysis details (09:36)

A relatively tame session thus far with news flow also on the quieter side as participants gear up for the headline US NFP release, which also comes after the White House said that they do not expect to see blockbuster job numbers every month. US President Biden will be commenting on the report in wake of the data (10:30EDT/15:30BST). Desks highlight that Biden often frames his remarks for a retail audience, not traders, and as such he is likely to talk up the continued progress being made in the jobs market, potentially highlighting any declines in the unemployment rate. As a heads up, Fed's Vice Chair Brainard will be speaking around the same time. In Thursday remarks, Brainard seemingly dismissed the notion that the Fed could pause its normalisation in September following 50bps rate rises in June and July but suggested that she was still undecided on September, and the Fed would take into account incoming data while making its assessment. The Fed goes into its pre-meeting blackout window after today, while the ECB is currently in its blackout window ahead of next week's confab. Back to today’s trade, US equity futures post modest losses across the contracts, with the NQ (-0.4%) straddling behind the ES (-0.2%), YM (-0.1%) and RTY (-0.3%). The modest downside coincided with Reuters reports that Tesla (-2.2% pre-market) CEO Musk, via an email, said they need to make roughly a 10% staff reduction and he has a "super bad feeling about the economy”. European cash bourses are trimming the Wall Street-induced gains seen at the open (Euro Stoxx 50 +0.2%; Stoxx 600 +0.2%) – with volumes also low as British and Chinese traders observe domestic holidays. Europe sees a mixed picture in terms of performance. Sectors are mostly higher with the breadth of the market narrow. Energy, Telecoms, and Financials are in mildly negative territory whilst Healthcare posts the most gains at the time of writing. Individual movers have been rather scarce today, but Stellantis (-1.3%) experiences some pressure amid reports the US DoJ is charging Co's FCA US unit with a criminal conspiracy within the US diesel emissions probe, with the hearing slated for Friday at 18:30BST/13:30ET, according to a filing. Faurecia (-5.4%) slides after announcing the launches of a EUR 705mln capital increase, with preferential subscription rights as part of the refinancing of Hella's acquisition. Finally, Telecom Italia (-0.7%) is prepared to end its partnership with DAZN, according to reports; and is looking for new partners, according to La Stampa.

03 Jun 2022 - 09:36- Fixed IncomeEconomic Commentary- Source: Newsquawk