European cash equity markets are mostly lower ahead of the midway stage (FTSE -0.5%, DAX 0.0%, CAC -0.4%, FTSE MIB -0.6%). Bank stocks are among the worst performers, dragged lower by HSBC who reported lower-than-expected full-year profits before the open. This has also prompted underperformance in the FTSE 100 while the German DAX has been underpinned by Wirecard shares that have surged for a second day after the German government banned short selling in its shares. In fixed, core European bonds are ahead having scaled new session highs after soft Italian industrial orders/sales data which also pushed BTP’s lower. Bunds and Gilts have since eased back from their best levels after mixed UK labour market data and German ZEW. For the record, the UK economy added +167K jobs in December (f/c. 152K) while average earnings ex. bonus rose +3.4% YoY (f/c. +3.85%). Turning to currencies, the Dollar Index has edged up +0.1% to 96.9 while Eur/Usd and Gbp/Usd both sit flat for the day. The Antipodeans are the weakest among the G10’s while the Swedish Krona shot to the top of the pile after CPI data surprised to the upside. Elsewhere, oil prices are mixed with US crude futures up +0.6% while Brent has lost -0.6%. Spot gold is up +0.2%. Looking ahead, futures are pointing to a slightly lower open on Wall Street with earnings due from DJIA component Walmart. On the data front, we await the NAHB housing index plus possible comments from Cleveland Fed President Mester and ECB Chief Economist Praet.
For a more detailed report please visit the ‘Market Research’ section.
