EUROPEAN EQUITY UPDATE: Stocks slip post-Fed and pre-BoE/ECB

Analysis details (09:35)

European equities trade on the backfoot (Eurostoxx 50 -1.2%) with losses picking up since the cash open in a day packed full of risk events. The session follows on from a despondent APAC lead, as the fallout from yesterday’s FOMC announcement reverberated across the region with market players also digesting disappointing Chinese Industrial Production and Retail Sales data, while property and tech stocks were driving the underperformance in Hong Kong after the HKMA raised rates in lockstep with the Fed. Stateside, US futures (ES -1.0%, NQ -1.3%, RTY -1.1%) are also being marked down thus far with the ES losing further ground below the 4K mark post-FOMC and pre-ECB and BoE with both banks set to pull the trigger on 50bps rate hikes (Previews of which can be found in the research suit of the website). On the data front, US retail sales data for November and weekly US initial jobless claims are due; the Empire Fed and Philly Fed manufacturing surveys for December will help guide expectations of what the ISM surveys will look like when they are released in early January. The US will also release industrial and manufacturing output data. Sectors in Europe are lower across the board with underperformance in Consumer Products, Basic Resources and Retail. The latter is being weighed on by H&M (-4.2%) post-earnings with the Co. exceeding sales expectations but not by as much as some had hoped for given recent market data in Germany and Sweden, according to JP Morgan. Elsewhere, HSBC (-1.8%) says it is on track to hit all financial targets and is targeting a dividend payout ratio of circa. 50% for 2023 and 2024. AB InBev (-1.8%) is lower on the session after being downgraded at Credit Suisse whilst Norsk Hydro (-2.7%) lags after announcing it will reduce costs and increase CAPEX in 2023. 

15 Dec 2022 - 09:35- Fixed IncomeData- Source: Newsquawk