EUROPEAN EQUITY UPDATE: Stocks supported in choppy month-end price action

Analysis details (08:58)

European equities (Eurostoxx 50 +0.1%) have kicked the final trading session of the month off on the front foot despite a cautious APAC lead which saw stocks in the region tentative following a soft handover from the US and disappointing Chinese PMI metrics. Stocks in Europe saw a marked pick-up at the cash open without much in the way of fresh fundamental drivers before returning to more modest gains with some desks citing month-end flows behind the choppy price action. In terms of the latest on Ukraine, markets are continuing to assess updates on the ground and how this sets up tomorrow’s virtual discussions between the two sides after a positive-sounding session on Tuesday which has so far not led to a material Russian troop withdrawal. Futures in the US are modestly firmer as the NQ (+0.7%) marginally outpaces the ES (+0.3%) with inflation set to continue to remain in focus today, with the release of US PCE metrics for March; core PCE is seen rising to 5.5% Y/Y. Fed’s Williams (voter) is due to make remarks later today – his remarks come post the inflation report, so his framing will be eyed. Sectors in Europe exhibit a mostly positive tilt with airline names (Ryanair +3.2%, easyJet +1.9%, IAG +1%) cheering the declines in the energy space. To the downside, Energy names are suffering from the aforementioned fall in the crude complex. The biggest laggard in the region is the retail section following a disappointing Q1 update from H&M (-8%) which saw metrics fall considerably short of expectations. In terms of other notable movers, Vodafone (-2.8%) are lower in the wake of a broker downgrade at Exane who have a GBP 1.10/shr price target on the company (trade GBP 1.25/shr last). Telecom Italia (-3.3%) has reversed course from opening gains which were prompted by reports that the company is to commence formal discussions with the Italian state lender CDP.

31 Mar 2022 - 08:57- EquitiesData- Source: Newswires