EUROPEAN EQUITY UPDATE: Stocks soft ahead of EZ inflation data

Analysis details (09:30)

European equities (Eurostoxx 50 -0.3%) trade on the backfoot but off worst levels with sentiment remaining depressed by ongoing hawkish monetary policy repricing. Next up for the market to contend with will be the release of the Eurozone CPI report which comes hot on the heels of firm regional releases from Spain, France and Germany. Expectations for the Eurozone-wide release are subsequently skewed higher, with attention likely to fall on the core metrics which have recently proven to be more stubborn than their headline counterparts. US equity futures (ES -0.5%, NQ -0.7%, RTY -0.7%) have continued to tilt lower in wake of February's manufacturing ISM data published on Wednesday; the surge in yields has put pressure onto the duration-sensitive Nasdaq-100, which underperforms its major peers. Asides from Eurozone inflation, ECB minutes will be eyed before the start of the US day, and then weekly initial jobless claims and continuing claims (the latter coinciding with the survey period for the BLS jobs data, due next week). Equity sectors are mixed with outperformance in Construction names following post-earnings gains from CRH (+10.6%), whilst Real Estate names have managed to bounceback from recent losses alongside earnings-inspired gains in Taylor Wimpey (+1%). To the downside, Banking, Tech and Travel & Leisure names lag peers with the latter hampered by Flutter Entertainment (-3.5%) after FY results weighed on shares. Elsewhere, bid talk surrounding M&G (+2.7%) has prompted upside in the Co.’s shares with Macquarie said to be interested in the Co. Responses to earnings releases have largely been met negatively with Beazley (-6.6%), Covestro (-3.6%), Clariant (-3.5%), Haleon (-3.1%), Schroders (-2.9%) and AB Inbev (-1.9%) all lower post-results.

02 Mar 2023 - 09:30- Research Sheet- Source: Newsquawk

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