EUROPEAN SHARES SEEN FALLING AHEAD OF PACKED WEEK (0735 GMT) European shares look set to fall at the open as a busy week of corporate earnings and central bank meetings kicks off.
EuroSTOXX50 index futures down around 0.6%. FTSE futures are on a similar trajectory while German DAX futures are faring slightly better, down 0.36%.
Traders are gearing up for the first major central bank meetings of 2023, with hikes on the horizon from the Federal Reserve, the European Central Bank and the Bank of England this week.
A flurry of earnings and corporate announcements will set the tone this morning.
Shares in Philips are expected to lift after the Dutch health technology company said Q4 revenue beat estimates and that it would scrap 6,000 jobs to restore profitability.
Nissan Motor Co and Renault SA announced a sweeping restructure of their two-decade-old automaking alliance that will put them on equal footing and see the Japanese company invest in Renault's new electric vehicle business. Shares in UK consumer goods giant Unilever are expected to rise after the company said it has appointed a new CEO, while budget airline Ryanair on Monday posted its largest after-tax profit for the October-December quarter.
The drama is still unfolding at India's Adani Group, which on Sunday issued a detailed
rebuttal to a Hindenburg Research report that has seen $66 billion wiped off the value of its
shares in three days. The company said it complies with all local laws and had made the
necessary regulatory disclosures.
(Lucy Raitano)
*****
BREATHE IN (0707 GMT)
Markets are holding their breath for a week where central banks may start to take divergent paths. Chinese markets have returned from the Lunar New Year break with a bit of a whimper rather than a bang and the wind filling the sails of a wider positive mood has backed off while rate decisions in the U.S., Europe and the UK beckon. Right now, investors' glasses remain half full, with traders pricing in a 25 basis point hike from the Federal Reserve and hoping to hear talk of a peak in rates from Jerome Powell. Wall Street's "fear index" - the VIX volatility index - on Friday fell below 18.0 for the first time in over a year, and perhaps a little under the radar, U.S. bond market volatility is now its lowest since last June. But cagey trade on Monday illuminates the nerves. Tech earnings loom as a mood test in the United States this week.
The European Central Bank, appears to be eying a 50 bp hike, too, which is helping keep the euro near nine-month highs, while the Bank of England is also expected to go 50 bps. In Asia, markets slipped slightly, U.S. futures fell 0.4% and currency trade was eerily calm. The Nikkei newspaper reported Renault was to lower its share holding in Nissan to 15%, while the latter would invest in Renault's EV business. Shares in India's Adani Enterprises climbed 6% on Monday, but several other Adani group companies plunged for the third straight day as the group fends off criticism from a U.S. short-seller. Things have not gone well for investors in other firms Hindenburg has targeted. Key developments that could influence markets on Monday: - Germany GDP (Q4) - Euro zone sentiment indicators (January)
(Tom Westbrook)
*****
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Hit by Hindenburg ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
