Equity Brief: Europe hands back last-chance gains of the week

Wall Street is holding in positive territory, though Europe failed to

Stock market snapshot as of [12/7/2019 4:47 PM]

  • Wall Street is holding in positive territory, affording a chance of a firm close to a busy week of risk events, which would support sentiment in another challenging week ahead
  • On the European side though, stock markets couldn’t quite cut it. A marginally soft close for the STOXX 600 showed the market gave back much of the optimism it began the session with
  • A second consecutive day of data topping expectations has sent a small chill through those betting big on ECB rate cuts in the relatively near term. Yesterday brought Germany’s upwardly revised inflation, on Friday firmer than forecast Eurozone industrial output could give the central bank pause for thought
  • With Singapore GDP unexpectedly taking a turn for the worst and China’s exports and imports also in decline, there may be too many chickens coming home to roost for large European exporters to gain
  • A dollar drop, and unabashed Fed optimism is keeping Wall Street aloft even after ‘good news was once again bad news’ in the shape of forecast-beating inflation, twice in two days. The sense that U.S. markets expect to be buttressed more by Fed rate cuts and a cheaper dollar than other regions, continues

Corporate News

  • Sweden’s OMX was a big exception to falling EU shares banking giant SEB topped quarterly expectations, triggering a rally at rival Swedbank and for industrial conglomerate Skanska
  • More broadly, Europe’s Materials, Industrials and Consumer shares paced the weakening trend, whilst energy shares barely gained as traders reassessed risks from storm Barry
  • Beer giant AB InBev spilt some consumer cheer, falling as much as 3.6%, with markets dissatisfied with pricing at its Hong Kong IPO 

Upcoming corporate highlights

BMO: before market open          NTS: no time specified

Upcoming economic highlights

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.