STOXX earnings estimates fall again

STOXX 600 down 0.7%

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FRC jitters, U.S. debt ceiling weigh

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Eyes on earnings releases

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Nasdaq futures rise after Microsoft, Alphabet results

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STOXX EARNINGS ESTIMATES FALL AGAIN (1130 GMT)

In a busy earnings week for European companies, analysts have cut their earnings growth estimates for the region's largest companies a bit further.

STOXX 600 companies' earnings are now seen declining 2.6%, compared to a 2.5% decline expected last week, according to Refinitiv I/B/E/S data.

Even as forecasts suggest the United States and Europe are heading into a corporate recession, a big splurge in spending in China after Beijing lifted COVID-19 lockdowns should help cushion quarterly results of the world's biggest companies, investors say.

(Joice Alves)

EUROZONE STOCKS: POSITIVES VS NEGATIVES (1010 GMT)

After gaining almost 30% from their October lows, euro zone stocks are fewer than 5 percentage points away from 2021's record highs, but doubts are starting to creep in over whether the rally has legs.

Economist Patrik Artus at Natixis in Paris has looked into this and after weighing up the positives against the negatives, he concludes that for now, more gains are in store.

"For the time being, the positive factors seem to outweigh the negative ones, and euro-zone stock market indices are expected to continue to rise in 2023," he writes.

Among the positives he mentions:

And here are the negatives:

STOXX NERVOUS, VOLATILITY TICKS UP (0843 GMT)

Jitters over First Republic Bank following big deposit outflows persisted on Wednesday, leading to nervous morning trading in Europe, hitting bank stocks for a second straight session and pushing up volatility levels.

The region-wide STOXX Europe 600 index hit a two-week low and was last down 0.7%, while banks fell more than 2% at one point. Also weighing were concerns over potential political gridlock in Washington over the debt ceiling.

Tech was a weak spot in Europe, down more than 1%, despite positive updates from Microsoft and Alphabet. A disappointing outlook from ASM International sent shares in the semiconductor equipment maker down 10%.

The euro STOXX volatility index briefly ticked up above 20 points and was last at a two-week high of 19.1. Energy and telecoms led gainers, both up around 0.7%.

(Danilo Masoni)

EUROPE HEADS SOUTH ON BUSY EARNINGS DAY (0647 GMT)

European shares are set to open lower on Wednesday as fresh investor concerns over the economy and the health of the banking sector overshadow well-received earnings from tech groups Microsoft and Alphabet.

EuroSTOXX50 and FTSE futures fell 0.5 and 0.3% respectively ahead of the cash market open, while euro STOXX bank futures lost more than 1%. The strong tech earnings however drove Nasdaq futures up 1.3%, pointing to a positive start on Wall Street.

In Europe investors will have to digest a flurry of earnings updates. In Britain, StanChart said Q1 pretax profit jumped 21%, beating expectations, while GSK also beat expectations helped by sales of its blockbuster shingles vaccine Shingrix.

Results are in too from Beiersdorf, Puma, Orange, Safran and Danone, Roche, Vonovia and Iberdrola, just to name a few.

(Danilo Masoni)

WOWED BY TECH, WORRIED BY BANKS (0615 GMT)

The steady stream of bad news from banks continues to cast a pall over markets this week, even as global tech giants surprise investors by beating earnings estimates.

Spain's Santander dragged European stocks down on Tuesday. UBS Group fell after setting aside more money to provide for toxic mortgages, as part of its merger with fallen rival Credit Suisse. That makes investors wary of such provisions at the likes of HSBC, Lloyds and NatWest Group, all of which are due to report earnings in the coming weeks.

Across the Atlantic, First Republic Bank's plunging deposits and tumbling shares are rippling through the U.S. regional banking sector.

U.S. recession fears have also resurfaced after consumer confidence hit a nine-month low, alongside some weak earnings.

In a week packed with tech sector earnings, the focus moves from artificial intelligence to advertising revenues as Facebook-parent Meta Platforms and streaming device maker Roku Inc report. Microsoft Corp earnings beat came after hours on Tuesday.

In other news, EU industry chief Thierry Breton identified five Alphabet subsidiaries, two Meta units, two Microsoft businesses, Twitter and Alibaba's AliExpress among 19 companies subject to landmark EU online content rules known as the Digital Services Act (DSA).

Key developments that could influence markets on Wednesday:

U.S. durable goods orders, Germany and France consumer confidence

Earnings: Meta Platforms, Boeing, GSK, Deutsche Boerse, Roku Inc

(Vidya Ranganathan)