European Equity Market Handover: The Fed still caps
Ken Odeluga May 2, 2019 2:27 PM
The over-reaction to the Federal Reserve’s more balanced commentary on the rates outlook than expected is starting to unwind
Stock market snapshot as of [2/5/2019 2:22 PM]
- Patches of green are appearing among U.S. stock index futures as the over-reaction to the Federal Reserve’s more balanced commentary on the rates outlook than markets desired starts to unwind
- The malaise is slower to lift in Europe, where only the DAX is lifted into shallow positive territory by strong results
- Another sobering Bank of England statement also added some gloom, despite policymakers’ attempt to portray Britain’s economy as straining at the leash of inflation. The MPC cut some CPI forecasts
- Large British stocks were in focus, led by Lloyds Banking Group, whose shares are down about 2% after disappointing earnings and Royal Dutch Shell which leads blue-chips after beating forecasts
- UK mid-cap Metrobank fell 19% at one point after noting recent regulatory action triggered a short-lived run on deposits. It also missed earnings expectations
- Germany’s VW and Bayer and France’s BNP Paribas were among European groups with pleasant earnings surprises that buoyed their shares
Upcoming corporate highlights
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.