EUROPEAN EQUITY UPDATE: Stocks tilt lower as geopolitics continue to dominate

Analysis details (09:35)

Equities in Europe have conformed to a mixed picture (Euro Stoxx 50 Unch; Stoxx 600 Unch) following indecision heading into the European cash open and after a similarly mixed APAC handover. US equity futures have adopted a mild downside bias, but price action remains contained as the European Council meeting enters its second day, whilst US President Biden met with the European Commission President before heading to Poland. The European morning also saw the release of the EU's plan to wane off Russian energy - whereby it is to work towards attaining around 50BCM of additional LNG from the US for EU members until at least 2030, according to a document. In terms of diplomacy, Sky News Arabia cited an adviser for President Zelensky saying, "There is progress in ceasefire negotiations with Russia" and expressed "cautious optimism" about talks with Russia, signalling a possibility of a diplomatic breakthrough in the negotiations with Russia. On the ground in Ukraine, a humanitarian corridor has been opened in the besieged city of Mariupol for private vehicles. However, according to the regional governor, the Chernihiv province in northern Ukraine has now been surrounded and isolated by Russian troops. Back in Europe, price action is caged, but the FTSE 100 (-0.3%) narrowly lags its peers as Banks and Energy feel the pressures of declining yields and crude prices. Sectors are mixed, but defensives are slightly more favoured as Utilities, Healthcare, Food & Beverages reside among the winners whilst the aforementioned Banking and Energy sectors sit at the bottom of the table. The market breadth among the other sectors is relatively narrow. In terms of individual movers, Telecom Italia (+2.5%) sees second wind from KKR reaffirming its interest in the name yesterday. Mobile network providers Vodafone (-0.8%) and Telefonica (-0.4%) are subdued, potentially on reports that Apple (-0.3% pre-market) is reportedly developing hardware subscription service for iPhones which could be launched by the end of the year or in 2023, according to Bloomberg.

25 Mar 2022 - 09:34- EquitiesResearch Sheet- Source: Newsquawk