Live Markets: T&L and real estate stocks prop up STOXX 600
18/08/2021 08:53
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T&L AND REAL ESTATE STOCKS PROP UP STOXX 600 (0738 GMT)
European equities are slightly higher, led by real estate
stocks along with a rebound in travel and leisure shares.
Asia's rise overnight provides some support while worries
about high valuations and the economic impact of the Delta
variant of the coronavirus weigh on risk sentiment.
The Stoxx 600 .STOXX is up 0.1%, with travel and leisure
and real estate stocks both up around 0.6%.
Oil and gas shares are the worst performers, down 0.4%, as
pandemic fears continue to weigh.
The reaction of some countries to the pandemic continues to
send jitters across markets as New Zealand yesterday placed the
entire country in lockdown after its first case in Auckland.
Meanwhile, the central bank held fire on a highly-anticipated
rate hike.
Euro zone inflation data are scheduled today. But, barring a
huge upside surprise, analysts don’t expect the numbers to have
much of an impact on stocks.
Alcon ALCC.S stocks are up 8% after better-than-expected
results and a hike in guidance. Netcompany Group NETCG.CO
shares are down 5% after its results.
(Stefano Rebaudo)
*****
RATE HIKE? NOT YET, SAYS NEW ZEALAND (0706 GMT)
New Zealand's decision on Wednesday to hold fire on a
highly-anticipated rate hike is a reminder of the challenges
major central banks face in their bid to step away from
emergency stimulus while the coronavirus remains a threat to
growth.
Reserve Bank of New Zealand policymakers quickly shifted
gears after the country was put into a snap COVID-19 lockdown
over a handful of new cases. urn:newsml:reuters.com:*:nL1N2PP01A
A hike is still expected before the year-end, lending some
support to a kiwi dollar that has taken a beating over the last
two sessions NZD= .
Investors will also be hoping to get the latest clues on the
timing and pace of the U.S. Federal Reserve's asset purchase
tapering meanwhile.
They'll be poring over the minutes due later on Wednesday of
the July 27-28 meeting, when officials declared the recovery on
course despite the rise of the Delta variant of the coronavirus.
The readout is likely to be key to the short-term outlook
for the greenback and Treasury yields, especially if it confirms
more policymakers are leaning towards tapering bond purchase
plans by the end of the year.
Of course, economic data since then has muddied the waters.
Strong labour market numbers have spurred a number of
policymakers to ramp up talk of an earlier-than-expected start
to tapering.
Still, retail sales fell more than expected in July, data
showed on Tuesday, suggesting a slowdown in economic growth
early in the third quarter. urn:newsml:reuters.com:*:nL1N2PN1S0
Fed Chair Jerome Powell said on Tuesday it remained unclear
whether the heightened outbreak of the coronavirus Delta variant
will have a noticeable impact on the economy. urn:newsml:reuters.com:*:nL1N2PO1OD
Key developments that should provide more direction to markets
on Wednesday:
- U.S. Federal Reserve releases minutes from July 27-28,
2021 policy meeting - 1800 GMT urn:newsml:reuters.com:*:nL1N2PO02K
- Norway's sovereign wealth fund presents second-quarter
results.
-UK consumer price inflation falls to BoE's 2% target in
July urn:newsml:reuters.com:*:nL8N2PP14T
- U.S. earnings: Robinhood Markets Inc Q2.
- European earnings: TBC Bank Group Q2.
- Inflation data for Slovakia and South Africa released.
-Danish brewer Carlsberg CARLb.CO raised its full-year
earnings guidance on Wednesday after reporting second-quarter
sales above expectations. urn:newsml:reuters.com:*:nL1N2PP0DB
(Tom Arnold)
*****
EUROPE IN THE BLACK BUT STILL UNCERTAIN (0533 GMT)
European stocks are poised to open slightly higher. However,
the medium-term direction is still uncertain amid concerns about
the spread of the impact of the Delta variant in Asia and
unexpected weak economic data in the U.S.
Asian equities snapping five successive sessions of declines
after a drop in reported COVID cases in China provide some
support.
But pretty expensive stock valuations coupled with
expectations of the peaking of economic growth in the third
quarter continue to weigh on risk sentiment.
(Stefano Rebaudo)
*****
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New Zealand holds rates but projects hikes as Delta hits https://tmsnrt.rs/2VVUoy1
snapshot https://tmsnrt.rs/3CWBZ4t
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