Live Markets: Tech helps STOXX edge up, FTSE awaits BoE
24/06/2021 08:59
* European shares rebound
* Tech stocks best sectoral performers
* BoE policy meeting in focus
* Nasdaq sets record close
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TECH HELPS STOXX EDGE UP, FTSE AWAITS BOE (0743 GMT)
European shares started the session in the black with tech
tracking U.S. peers higher and helping the STOXX 600 .STOXX
index recover some of the ground it lost yesterday.
The pan-regional benchmark was last up 0.3% with the tech
index .SX8P leading sectoral gainers, up 0.7%. Most other
sectors were also trading in positive territory, while telecoms
.SX7P clearly underperformed, down 0.4%.
Top gainers on the STOXX were shares in Tecan Group TECN.S
up 12% after the Swiss laboratory instruments maker agreed to
buy U.S. group Paramit Corp for $1 billion. urn:newsml:reuters.com:*:nL5N2O61FN
The FTSE 100 .FTSE performed broadly in line with the
broader European market with sterling steady before a BoE policy
meeting set to show whether central bankers are worried over
Britain's recent jump in inflation.
Here's your opening snapshot:
(Danilo Masoni)
*****
WEIGHING IN ON THE T-DEBATE (0652 GMT)
Post-Fed market action hasn't exactly been straightforward
and one week after the bank kicked off tapering talk and
signalled a 2023 rate hike investors are still trying to make
full sense of it.
The hawkish tilt - at face value negative for tech - has
boosted the Nasdaq whereas Europe's cyclically tilted STOXX 600
has shifted into reverse gear, erasing its recent outperformance
relative to Wall Street.
So while the Nasdaq closed at new record highs overnight and
is set for more gains later, European stock futures point to a
mildly positive start after losses yesterday in spite of euro
zone PMI surveys beating expectations to hit a 15-year high.
Equity markets are reflecting the prospects that eventually
economic growth will slow down amid less central bank support,
while the chance of a rate hike has pushed short-dated U.S.
rates higher, flattening the yield curve.
So while investors assess Fed's policy shift, the focus
today moves to the Bank of England with the pound holding below
a two-year high hit earlier this month.
No change is expected but sterling bulls will be eager to
know if any other policymaker joins Chief Economist Andy Haldane
to scale back the bond-buying programme at his final meeting.
urn:newsml:reuters.com:*:nL5N2O52OA
Finally Germany's IFO will also be eyed for more insight
into the strength of business climate in Europe's No.1 economy.
In corporate news, private equity firm Blackstone has
sweetened its buyout offer for St. Modwen Properties to 1.25
billion pounds.
Key developments that should provide more direction to
markets on Thursday:
* Bank of England policy meeting 1100 GMT
* ECB speakers: board members Panetta and Schnabel
* Netherlands, Spain Q1 GDP data
* Business climate surveys: Germany, France.
* U.S. data: May durable goods, Q1 GDP, Core PCE prices
* Emerging markets: Philippines, Mexico rate decisions
* U.S. 7-year note auction
(Danilo Masoni)
*****
EUROPE SEEN OPENING STEADY (0540 GMT)
European shares look set to open steady this morning after
falling in the previous session in spite of strong PMI surveys,
with the focus turning to the BoE's policy meeting and Germany's
IFO business climate index.
So while on Wall Street the Nasdaq continues to score fresh
record highs, main European benchmarks remain subdued.
Futures on the DAX and FTSE 100 indexes were last up less
than 0.1%, while Euro STOXX 50 futures rose 0.2%, whereas Asian
shares tread water and U.S. futures pointed to a positive start.
For a BoE story, check out: Rising inflation puts Bank of
England on the spot urn:newsml:reuters.com:*:nL5N2O52OA
(Danilo Masoni)
*****
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