EUROPEAN EQUITY UPDATE: Stocks set to close the week out around flat as direction remains lacking

Analysis details (09:10)

• European equities (Stoxx 600 +0.3%) trade a touch firmer with the Stoxx 600 on track to close the week out pretty much where it started. In the holiday-shortened week, it has been one devoid of fresh macro impulses for the region with some of the concerns around soft US data failing to have too much bearing on price action this side of the Atlantic.


• The handover from the APAC region was a mixed bag with the Nikkei 225 continuing to lag peers whilst downside for Chinese bourses was cushioned by strong Caixin Services and Composite PMI data.


• US futures are flat and lacking in direction with the focus for the session ahead remaining on the labour market ahead of tomorrow’s NFP report. Today’s docket sees the release of the March Challenger layoffs data and the weekly (and timely) initial jobless claims data; the data will be under close scrutiny given soft data releases throughout the week. Furthermore, Fed’s Bullard (non-voter, hawkish) will be making remarks in wake of the data; he has generally advocated continued rate hikes, despite the recent banking woes, as the Fed continues its fight to bring inflation down. Note, next week will also bring the start of Q1 reporting, with much focus on the Big Banks which are due to report at the back-end of the week, while some regional banks will also be up-dating earlier in the week (FRC). This may leave trading conditions somewhat tentative for large parts of today, as traders eye the long weekend.


• Equity sectors in Europe are mixed with Utilities and Travel & leisure near the top of the leaderboard with the latter bolstered by gains in Tui (+8%) with some traders attributing the move to favourable commentary on the Co.’s booking momentum. To the downside, Consumer Products & Services lag with Media names also on the backfoot amid losses in Universal Music Group (-5%) following a broker downgrade at Exane BNP. Shell (+1.8%) shares are on the front foot after a Q1 update which saw the Co. flag significantly higher trading performance in its oil products division.

06 Apr 2023 - 09:10- Fixed IncomeData- Source: Newsquawk