Last checked at 
* STOXX 600 edges down
* U.S. tax plans weigh
* Buoyant PMIs fail to lift sentiment
* Allfunds IPO shines
* Bitcoin slump
* Firstgroup jumps on U.S. deal
Welcome to the home for real-time coverage of equity markets brought to you by Reuters
reporters.
STRONG Q1 FAILING TO IMPRESS (0954 GMT)
The Q1 earning season has started with a bang with Europe set to end a long corporate
recession. Yet, the results are failing to boost stock prices.
It is fair to say that we may be on track for a quarter of positive surprises, despite
raised expectations as easy comparisons with April 2020 means beats are very likely, Barclays
says. EPS growth is coming through very high thus far at 107% y/y in Europe and 63% y/y in the
US.
"Stock price reaction to the good results has been muted," writes Barclays. "Stretched
technicals leave little margin for error and the reflation trade is showing signs of fatigue".
This could raise fears a correction could be in its way, it adds.
(Joice Alves)
*****
IPOs: "NOT MUCH HOT MONEY IN THE MARKET" (0932 GMT)
It's a rather counterintuitive take with Allfunds shares surging 18% for their Amsterdam
debut, but a source who worked on the deal believes the hype around IPOs has faded a little.
"I think it's fair to say there's not much hot money in the market at the moment", he told
us, adding that the Allfunds IPO was priced accordingly.
"A view was taken that we weren't going to push pricing more than is natural, and that is
reflected in the range which elicited a very positive reaction from investors", he explained,
stressing the mood is quite different from just a few weeks ago.
"I think earlier on the year, you had some big tier 1 long-only investors who were literally
scared of missing out on deals. You don't get that anymore".
Looking into the next big IPO coming, Synlab in Frankfurt, it also look that dealmakers made
their peace with the current mood. The pharma company set a price range of 18–23 euros per
share, setting the deal size at up to 1.032 billion euros and the company valuation at 4-5
billion euros.
"I think there's an acceptance it's lower than the initial indications they could have had
four or five weeks ago," the source added.
(Abhinav Ramnarayan with Julien Ponthus)
*****
NO BUYERS FOR THE UK RETAIL SURPRISE (0837 GMT)
UK retail sales data surprised to the upside, with volumes jumping by 5.4% in March from
February, compared to the Reuters poll forecast of 1.5%.
Even though non-essential retailers in England only re-opened on April 12, the data shows a
boost from people getting ready to go out again, e.g. online clothing sales.
There was also a rise in mobility equipment sales as older people prepared to leave their
homes after their vaccinations.
But there was next to no market reaction, even with stellar PMIs coming in, suggesting that
the UK's economic recovery is to a large extent priced in.
"The financial market reaction has been surprisingly muted with sterling barely changed and
FTSE 100 futures declining by roughly 0.2% since the announcement (perhaps in the belief that it
may encourage earlier action from the BOE)," said Paul Jackson, Global Head of Asset Allocation
Research at Invesco.
But Alastair George, Chief Investment Strategist at Edison Group said that the UK's
"re-opening" theme has further to run and would benefit retail, entertainment and leisure venues
over the summer.
(Elizabeth Howcroft)
*****
OPENING SNAPSHOT: WHEN TAXES SPOIL THE VIBE (0806 GMT)
European bourses edged slightly lower and were on course for their first weekly decline in
eight weeks as the mood in global markets turned sour after U.S. President Biden said he plans
to raise taxes on the wealthiest to fund the huge COVID-19 spending.
The pan-European STOXX 600 index is down 0.1%, with the financial service sector
leading the losses, down 0.4%.
But not everything is negative. Strong Q1 results supporting shares at Dometic Group
, SEB and Daimler AG.
PMI data showed that German factories continued to churn out goods at a near-record pace in
April, while in France, business activity expanded more strongly than forecast in April
On the IPO front, Spain's fund distribution firm Allfunds jumped over 13% in its
debut on Euronext Amsterdam. It had priced its IPO at 11.50 euros per share, giving it a
valuation of about 7.2 billion euros.
Among Britain's mid caps, shares of transport operator First Group jumped as much as
19% after it agreed to sell two businesses to private equity firm EQT.
Worth mentioning that strong sales in Q1 did little to help jacket maker Moncler
stocks, which are falling around 6%.
(Joice Alves)
*****
WILL PMIS AND EARNINGS LIFT SENTIMENT? (0536 GMT)
European futures are losing roughly 0.3% at the moment and it seems Biden's tax plans have
eroded sentiment across global markets.
The fact that bitcoin is trading below the $50,000 bar is also contributing to the risk-off
mood but that being said, there are plenty of earnings and indicators in the pipeline to shape
the trading session going further.
PMIs, both in the euro zone and in the UK will no doubt have a big role to play.
It's also a big IPO day for the European market with Spanish fund distribution firm Allfunds
making its stock market debut on Euronext Amsterdam.
(Julien Ponthus)
*****
