Live Markets: Europe set for soft start
29/09/2022 07:54
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EUROPE SET FOR SOFT START (0650 GMT)
European shares are set for a weaker start today as the
boost provided by BoE's emergency bond buying move appeared to
fizzle out less than one day after its announcement.
Euro STOXX 50, DAX and FTSE futures were last down around
0.3% following a sharp reversal in the previous day that took
the STOXX 600 regional index off November 2020 lows.
The mood in Asia looked more constructive as equity
benchmarks there played catch up with the strong rally on Wall
Street. U.S. futures however fell in early European hours.
In corporate news, eyes are squarely on supercar maker
Porsche AG's P911_p.DE debut in Frankfurt after an IPO priced
at the top of the range.
Investors will also react to solid-looking numbers from
hotelier Accor ACCP.PA and appliance maker Rational RAAG.DE ,
while retailers H&M HMb.ST and Next NXT.L saw their shars
slide in premarket trade after downbeat updates.
In M&A, UK-listed microcap Attraqt ATQT.L is set for a big
jump after a 30 pence cash offer from Crownpeak.
(Danilo Masoni)
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GILTY PARTY (0557 GMT)
The Old Lady of Threadneedle Street's cash tourniquet on the
gilt market is holding, with the relief rally driving 30-year
yields GB30YT=RR down a wild 105 basis points in a few hours.
Yet the remedy is little salve for a sinking pound GBP= ,
which has again been sold all day in Asia. Support at $1.084 was
shortlived, parity beckons and hedge funds are lining up to
profit from another leg lower.
Pricing for 125 basis points of rate hikes with a chance of
150 bp by November points to some hope in markets that the Bank
of England does do more, and soon. 0#BOEWATCH
Officials David Ramsden (1130 GMT), Silvana Tenreyro (1500
GMT) and Huw Pill (1500 GMT) are slated to speak and will be
closely watched.
But the whip hand is finance minister Kwasi Kwarteng's,
since his has put fiscal and monetary policy at odds. He is due
to make a speech at the Conservative party conference on Monday.
While markets have been so focused on British assets, the
greenback is applying a full-court press.
Authorities in Japan have already sold dollars to support
the yen. South Korea, India and Indonesia are also making
various interventions to hold up markets. China's yuan is
wavering ahead of a week-long holiday in China - an age in these
markets.
Russia is about to annex a swath of Ukraine, a step to
extending its nuclear umbrella over them. The EU suspects
sabotage of gas pipes beneath the Baltic Sea. German inflation
figures due at 1100 GMT offer a preview of Europe's numbers.
Asian share markets carried on Wall Street's bounce but in
more muted fashion. The Hang Seng .HSI rose 1.2%. MKTS/GLOB
Key developments that could influence markets on Thursday:
Speakers: BoE's Ramsden, Tenreyro and Pill; Fed's Bullard,
Mester and Daly
Economics: CPI data in Germany and Spain, U.S. Q2 final GDP
(Tom Westbrook)
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