US EARLY MORNING: Equity futures continue upside after Monday's late bounceback

Monday's session was choppy, illiquid, influenced by closures in markets like the UK and China, but equities still managed to close higher after a late bounce back, and in spite of yields climbing higher ahead of the Wednesday FOMC meeting, with 10yr yields topping 3.00% for the first time since 2018. US equity index futures are currently trading higher by 0.1-0.4% (RTY +0.4%, ES +0.2%, YM +0.2%, NQ +0.1%) amid cautious overnight trade in Asia, but a brighter start in Europe, where earnings have been a focus. The market continues to eye this week's risk events (overnight the Aussie RBA surprised hawkishly with a larger than expected rate rise; FOMC Wednesday, where a 50bps hike and QT are likely; BoE on Thursday; OPEC+ is expected to hold policy steady this week; ISM services on Wednesday, and the US jobs report on Friday). JPMorgan's strats say markets are continuing to contend with three concerns: China, geopolitics and the Fed. The bank argues that, given it does not expect a recession, not even in Europe (an argument premised on resilience in Q1 corporate earnings, low stock valuations, China credit impulse turning, much of the Fed repricing is done), geopolitics is the wildcard. It observes that the Growth style has lost 19% vs Value over the past few months, and the performance beneath the surface was even more dramatic. "Almost half of Nasdaq constituents are down at least 50% from the rolling highs, and many pockets of Growth have derated meaningfully." The bank notes that its key call this year was for higher yields, and to overweight Value vs Growth; "we believe the convergence trade remains relevant longer term, but there could be some stabilisation given the recent moves."

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Rivian (RIVN) - Announced it had secured an incentive packaged worth up to USD 1.5bln for an upcoming EV plant in Georgia.

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03 May 2022 - 09:24- EquitiesResearch Sheet- Source: Newsquawk

USDUnited StatesFOMCCitigroup IncOilSoftBank CorpChinaSFTBY.USAMKR.USMPWR.USFMC.USFLS.USBXP.USAlibabaCAR.USNXPI.USLOGI.USMOS.USKMT.USFN.USSANM.USC.USAMZN.USBABA.USEXPE.USLEG.USMGM.USCHGG.USCLX.USDVN.USFANG.USRussian FederationEuropeChegg IncClorox Co/TheCLXDevon Energy CorpDVNDiamondback Energy IncFANGMosaic Co/TheMOSFMCStellantis NVBMWMBGAvis Budget Group IncFlowserve CorpKennametal IncBoston Properties IncBXPSEDG.USANET.USEquitiesESRBABoEOPECInstitute for Supply ManagementFederal ReserveKEYCredit Suisse Group AGS&P 500 IndexNASDAQ 100 IndexTECHSemiconductorsNXPIInitial Public OfferingPM USAmkor Technology IncMonolithic Power Systems IncMPWRArista Networks Inc.ANETFabrinetSanmina CorpSolarEdge Technologies Inc.CSwedenAmazon.com IncAMZNExpedia IncEXPEMGM Resorts InternationalMGMUnited KingdomAsian SessionHighlightedResearch SheetUkraineAsiaGeopolitical

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