EUROPEAN FUTURES STRUGGLE FOR DIRECTION AS TRADERS EYE KEY EARNINGS (0636 GMT)
Futures are struggling for direction, as sticky inflation and monetary policy come back to the forefront for traders, who also have their eyes on key earnings trickling out of Europe today. Futures on the STOXX 50 are 0.1% higher, while FTSE futures are flat and and DAX futures are down 0.1%. Volatility has dropped as worries around banking stocks receded and players are gearing up for several key central bank meetings in the next few weeks. A Reuters poll of economists found the U.S. Federal Reserve is expected to deliver a final 25-basis-point interest rate increase in May and then hold rates steady for the rest of 2023. On the earnings front, there were positive signals out of Europe on Thursday. French car maker Renault said on Thursday revenues had grown by 30% in the first quarter thanks to a rebound in sales and higher prices, while Sweden's AB Volvo lifted its outlook for key heavy-duty truck markets in Europe and North America this year as it reported a 32% year-on-year rise in order intake for the first quarter. Swiss elevator and escalator manufacturer Schindler also reported a 47% jump in first-quarter profit on Thursday.
But it's not all been plain sailing. Tesla shares are down 6.1% in Frankfurt, after boss Elon Musk on Wednesday said the electric vehicle (EV) maker would prioritize sales growth ahead of profit in a weak economy. Frankfurt-listed shares in meme stock Bed Bath & Beyond plunged 18.4% after media reports that the homeware retailer is preparing to file for bankruptcy.
(Lucy Raitano)
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