Live Markets: STOXX down, results weigh, energy up

Boliden AB

20/10/2022 09:17

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      STOXX 600 down 0.4%
    

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      Ericsson slumps on Q3 miss
    

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      Oil stocks gain on crude strength
    

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      U.S. stock futures fall
    

  
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        STOXX DOWN, RESULTS WEIGH, ENERGY UP (0816 GMT)
    Earnings releases aren't helping this morning. 
    The STOXX 600  .STOXX  is down for a second straight
session, eating further into the October bounce, with Ericsson
 ERICb.ST  falling a whopping 14% after the telecom equipment
maker missed Q3 earnings expectations as costs hit margins.
    Double digit share drop for Nordic Semi  NOD.OL  after its
Q3 update, while Boliden  BOL.ST , Allfunds  ALLFG.AS  and Nokia
 NOKIA.HE  are all falling over 5% post-results.    
    Gains across the energy sector helped limit STOXX declines
with oil majors TotalEnergies  TTEF.PA  and Shell  SHEL.L  up
over 1%, while loss-making contractor Saipem  SPMI.MI  jumped
10% after a jumbo $4.5 billion LNG contract in Qatar.   
    Rising oil prices on news that China is considering a cut in
the duration of quarantine helped the sector. 
    The pan-European equity benchmark index was last down around
0.4%. Here's your snapshot:    
        (Danilo Masoni)
  
        *****
  
        EUROPE EYES WEAKER START AS EARNINGS TRICKLE IN (0651
GMT)
  
    European shares look set to open lower in nervous trading
today as a selloff in U.S. bonds resumed and Tesla delivered a
Q3 revenue miss, hitting its shares in after-market trading.
    Euro STOXX 50, DAX and FTSE futures were last down 0.3-0.5%
with investors also digesting a large numbers of earnings
reports from European companies and the latest producer price
inflation figures in Germany, which topped expectations.
    Traders expected shares in Nokia and Ericsson to fall after
downbeat looking numbers, while in financials, Deutsche Boerse
and Bankinter were indicated higher after solid results.     
    French spirits maker Pernod Ricard was seen rising after a
confident outlook.
        (Danilo Masoni)
  
        *****
  
    TRUSS DRAMA DEEPENS (0558 GMT)
    Britain's political drama keeps getting more and more
interesting.
    The abrupt resignation of Britain's interior minister Suella
Braverman, who criticised Liz Truss, reflects the continued
erosion of the prime minister's authority after just weeks in
the job.
    Officers from 1922 committee, in charge of running Britain's
Conservative Party leadership contests, are set to meet on
Thursday to discuss the escalating leadership crisis, The
Telegraph's associate editor Christopher Hope tweeted.
    And as markets watch the political chaos, there seems to be
no respite for the beleaguered pound.
    Sterling  GBP=D3  failed to get any support from British
inflation rising back to double digits, which is likely to put
more pressure on the Bank of England to step up rate hikes next
month. The pound, which has shed 17% so far this year, slipped
0.1% to $1.1206 in Asian trade on Thursday.
    Markets in the region are fixated on the yen  JPY= , which
is teetering at the break of 150 to the dollar, a level that
would mark a 32-year-low and has long been seen as a
psychologically important one for market participants.
    Japan's central bank said it would hold emergency
bond-buying operations, offering to buy some $667 million in
government debt, a move aimed at putting a floor under bond
prices.
    The yen has depreciated by about 23% so far this year,
making it the weakest major currency in Asia.
    Asian stocks headed down on Thursday, taking a cue from
rising yields and cutting short a brief rally that was triggered
by strong earnings reports by U.S. and European companies.
    Even the Federal Reserve's comments saying inflation
pressures are easing failed to lift equities.
    Economists at ING said: "The market has been looking for
hints of a Fed pivot for weeks, but now that they are here, they
seem to be ignoring them."
    "This sets up the day for a possible 'lightbulb moment',
followed by strong gains in equities, and falls in front-end
bond yields and the U.S. dollar." 
    Key developments that could influence markets on Thursday:
    Economic data: Euro zone Aug current account  
    European earnings: Ericcson, ABB, Akzo Nobel, Nordea and
Volvo
    US Oct Philly Fed index, Sep existing homes
    (Anshuman Daga)
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Japan's history of supporting yen    https://tmsnrt.rs/3EF9DiO
British pound whipped around by Trussonomics    https://tmsnrt.rs/3MK0UOg
EU open    https://tmsnrt.rs/3VJDcWg
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