Live Markets: Europe mostly higher on tech, energy gains

Aareal Bank AG

05/04/2022 08:45

Welcome to the home for real-time coverage of markets brought to
you by Reuters reporters. You can share your thoughts with us at
markets.research@thomsonreuters.com
    
    EUROPE MOSTLY HIGHER ON TECH, ENERGY GAINS (0741 GMT)
    European shares were trading mostly higher in early trade on
Tuesday with oil & gas stocks some of the better performers as
expectations of more sanctions on Russia lifted oil prices. 
    Tech shares were also strong, a day after Elon Musk sent
Twitter shares higher by 27% after announcing a 9% stake in the
social media company.
    The STOXX 600  .STOXX  was up 0.3%, the DAX  .DAX  was up
0.4%, the FTSE 100  .FTSE  was little changed and the IBEX
 .IBEX  was up 0.5%. 
    Shares in German real estate bank Aareal Bank rose 3.6% at
the open after some of the company's top shareholders agreed to
an increased buyout offer from Advent International and
Centerbridge Partners.
    Darktrace shares fell over 7% after JPMorgan started the the
cybersecurity company at underweight with a price target of 400
pence per share. 
    Here's the picture at the open: 
    
    (Samuel Indyk)
    ***** 
    
    
    THE FLIGHT OF DOVES (0656 GMT)
    Even the most dovish central banks are now caving in, and
accepting the need to act against persistent inflation. The
latest case in point is the Reserve Bank of Australia.
    Earlier on Tuesday, the RBA opened the door to its first
interest rate hike in over a decade, dropping a pledge to be
"patient" on policy.  urn:newsml:reuters.com:*:nL2N2W306M
    Markets were already positioning for higher Australian
rates, but the RBA's pivot nonetheless pushed the Aussie dollar
to its highest level since June.    
    Another dove, Sweden's Riksbank, too changed tack recently
and started talking about the need to hike rates this year. 
    With some European Central Bank policymakers pushing for
tighter policy in 2022, the Bank of Japan and the Swiss National
Bank are now the outliers. But watch that space. 
    Stock markets, meanwhile, are holding their ground. Asian
shares rose to the highest in more than a month while European
and U.S. stock futures are flat to a touch firmer.
    On the geo-political front, the likelihood of more Western
sanctions to punish Russia for the killings of Ukrainian
civilians is lifting oil and hurting the euro.  urn:newsml:reuters.com:*:nL5N2W25PF
    The United States ratcheted up the pressure on Monday, 
stopping Russia from accessing more than $600 million out of
reserves held at American banks to pay bondholders  urn:newsml:reuters.com:*:nL2N2W300B.
    And it's also time to start paying attention to France,
which holds the first round of a presidential election this
weekend.
    Far-right candidate Marine Le Pen's presidential campaign
has gained momentum. She captured 48.5% of voter intentions in a
poll of a likely runoff against incumbent Emmanuel Macron, the
highest score she has ever notched.  urn:newsml:reuters.com:*:nL2N2W21GK    
    
Key developments that should provide more direction to markets
on Tuesday: 
- Final March PMIs 
- EU to sell new 20-year green bond
- NATO Secretary General Jens Stoltenberg gives news conference
- German foreign minister Baerbock meets U.S. Secretary of State
Blinken
- EU Economic and Financial Affairs Council meeting.
- ECB speakers: Vice-President Luis de Guindos
- Federal Reserve speakers: governor Lael Brainard; Minneapolis
Fed President Neel Kashkari; New York Fed President John
Williams.
- U.S. trade balance/ISM index
- Romania Central Bank to raise interest rates
    
    (Dhara Ranasinghe)
    *****
    
    
    EUROPE SET FOR LOWER OPEN AS MORE SANCTIONS EYED (0628 GMT) 
    European equity futures were trading lower on Tuesday
morning as the situation in Ukraine continues to provide a
headwind, with the United States and Europe planning new
sanctions over civilian killings.  urn:newsml:reuters.com:*:nL5N2W25PF
    Asia-Pacific markets were relatively steady with China, Hong
Kong and Taiwan markets closed for various holidays. 
    In Australia, the RBA kept their main interest rate
unchanged at 0.1% but dropped a previous pledge to be "patient"
on policy, opening the door for a first rate increase in over 10
years.  urn:newsml:reuters.com:*:nL2N2W306M    
    Eurostoxx 50 futures  STXEc1 , DAX futures  FDXc1  and FTSE
100 futures  FFIc1  are all down 0.2%, while IBEX futures are
little changed  MFXIc1 .
    German-based real estate bank Aareal Bank will be one to
watch at the open after major shareholders agreed to sell their
holdings for 33 euros per share to U.S.-based Advent
International and Centerbridge Partners.  urn:newsml:reuters.com:*:nASM0006IF  
    
    (Samuel Indyk)
    *****

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Aussie dollar surges on hawkish RBA    https://tmsnrt.rs/3J3mGsM
EU open 050422    https://tmsnrt.rs/3DHRyy3
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>