EUROPEAN OPEN: Indices open generally lower after FB drag, earnings; ECB, BoE ahead

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  OPEN: European equities open on the back foot with the mood among equity traders soured after Meta’s Q4 metrics, where profits, DAUs, MAUs were on the soft side, and guidance disappointed. FB has a 4.7% NDX weight and a 2.3% SPX weight, and has dragged US futures lower too. In Europe, it has been an exceptionally busy morning of corporate updates – which we recap here and here – saw Shell (SHELL LN) top estimates on higher energy prices, while banks are also in focus after ING (INGA NA) saw a jump in pretax profits, Spain’s BBVA (BBVA SM) reported a rise in profits but opened lower, while Scandy bank Nordea also posted better-than-expected numbers. The focus will soon shift onto central banks, with the ECB (preview) and BoE (preview) rate decisions in the European afternoon, where the latter will have a delicate act in managing hawkish expectations after higher-than-expected inflation, while the latter will fire a 25bps rate hike and end QE reinvestments. Elsewhere, mega-cap Amazon (AMZN) is on the slate to report after the US close today.


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  INDICES: At 08:05GMT, Euro Stoxx 50 -0.4%, FTSE 100 +0.2%, DAX 40 -0.2%, CAC 40 +0.1%, FTSE MIB -0.0%, IBEX 35 -0.1%, SMI -0.5%. Sectors are mixed: Basic Resources leading the way higher, while Energy is also supported after Shell earnings; Health Care is lagging, likely from the Roche drag, which is also weighing on the SMI Index.

NOTABLE MOVERS:

• Compass Group (CPG LN) +6.7%: Close to achieving pre-pandemic revenue.


• Deutsche Telekom (DTE GY) +2.3%: T-Mobile earnings beat.


• Siemens Healthineers (SHL GY) +1.3%: Earnings.


• Shell (SHEL LN) +1.5%: Earnings.


• Infineon (IFX GY) -2.0%: Earnings.


• Roche (ROG SW) -2.8%: Earnings.


• ABB (ABBN SW) -2.8%: Earnings.


• ING (INGA NA) -5.0%: Earnings.


• BT (BT/A LN) -5.0%: Earnings. 

NOTE: Our full Newsquawk Daily European Equity Opening News (3/Feb) can be accessed here; additional European Equity News can be accessed here. 

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DAY AHEAD FEBRUARY 3RD:

• 08:15GMT/03:15EST: Spain Markit Services, Composite PMI (JAN)


• 08:45GMT/03:45EST: Italy IHS Markit Services, Composite PMI (JAN)


• 08:50GMT/03:50EST: France Markit Services, Composite PMI (JAN, Final)


• 08:55GMT/03:55EST: Germany Markit Composite, Services PMI (JAN, Final)


• 09:00GMT/04:00EST: EZ Markit Composite, Services PMI (JAN, Final)


• 09:30GMT/04:30EST: UK Markit/CIPS UK Services, Composite PMI (JAN. Final)


• 09:40GMT/04:40EST: Spain 3-Year Bonos, 15-Year Obligacion Auction


• 10:00GMT/05:00EST: EZ PPI (DEC)


• 10:00GMT/05:00EST: France 10-Year OAT Auction


• 10:40GMT/05:40EST: Spain 10-Year Obligacion Auction


• 11:25GMT/06:25EST: Eli Lilly and Co (LLY) earnings (preview)


• 11:30GMT/06:30EST: Turkey FX Reserves (28/JAN)


• 11:30GMT/06:30EST: Merck & Co Inc (MRK) earnings (preview)


• 11:30GMT/06:30EST: Honeywell International Inc (HON) earnings (preview)


• 11:45GMT/06:45EST: Estee Lauder Companies Inc (EL) earnings (preview)


• 12:00GMT/07:00EST: Conocophillips (COP) earnings (preview)


• 12:00GMT/07:00EST: Mexico Consumer Confidence (JAN)


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  12:00GMT/07:00EST: BoE Rate Decision, MPR (preview)
  


• 12:30GMT/07:30EST: US Challenger Job Cuts (JAN)


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  12:45GMT/07:45EST: EZ ECB Rate Decision (preview)
  


• 13:00GMT/08:00EST: Brazil Markit Services, Composite PMI (JAN)


• 13:30GMT/08:30EST: ECB Press Conference


• 13:30GMT/08:30EST: US Unit Labour Costs Prel, Nonfarm Productivity Prel (Q4)


• 13:30GMT/08:30EST: US Initial Jobless Claims (29/JAN), Continuing Claims (22/JAN)


• 14:45GMT/09:45EST: US Markit Services PMI, Composite PMI (JAN, Final)


• 15:00GMT/10:00EST: US ISM Non-Manufacturing PMI (JAN)


• 15:00GMT/10:00EST: US Factory Orders (DEC)


• 15:30GMT/10:30EST: US EIA NatGas Stocks Change (28/JAN)


• 16:30GMT/11:30EST: US 4-Week, 8-Week Bills Auction


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  21:00GMT/16:00EST: Amazon.com Inc (AMZN) earnings (preview)
  

03 Feb 2022 - 08:12- Fixed IncomeEU Research- Source: Newsquawk