((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
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Major US indices slightly green; Nasdaq up about 0.5%
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Technology sector leads S&P 500 gains; the consumer staples sector is lagging
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The Euro STOXX 600 index loses ~0.3%
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Dollar, Gold and Crude Oil Up; bitcoin falling
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10-year US Treasury yield rises to ~4.17%
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EU AIRLINES IN THE 4TH QUARTER: OPPORTUNITIES FOR THE MOST BRAVERY – BERNSTEIN
After a strong 2023, European airlines continue to report strong bookings despite a weakened macroeconomic environment, with high prices and interest rates weighing on consumer spending.
Investors continue to wonder whether this favorable scenario can last as fourth-quarter results approach, which enter the low tourist season.
Early in the fourth quarter, war broke out in the Middle East, leading to some pressure on bookings, although airlines quickly reoriented their networks and gradually restored services, Bernstein said in a note.
That said, airline stocks are trading well below historical multiples as they appear to be pricing in a significant deterioration in demand and profitability in 2024.
Additionally, the end of March is Easter, which heralds the start of summer, when airlines really make money.
That’s why the outlook should matter more and if “airlines are able to give investors confidence in strong passenger demand, there is an upside path for stocks,” the broker added.
Among airlines, Bernstein believes short-haul is more attractive than long-haul because the former is more affected by capacity constraints that should support fares.
Ryanair RYA.I remains the “stock to hold” due to very limited exposure to “impaired” business travel and a net cash balance sheet to defend against macroeconomic risks, Bernstein stressed.
(Matteo Allievi)
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FOR OTHER FRIDAY POSTS ON LIVE MARKETS:
US STOCKS ARE UP FROM START, WAITING FOR DATA – CLICK HERE
HAS THE REBOUND IN TREASURY BILL YIELDS EXHAUSTED? – CLICK HERE
OPPORTUNITIES IN THE EUROPEAN SECTOR DIVERGENCE IN 2024 – UBS – CLICK HERE
FIRST ECB RATE CUT: APRIL OR SEPTEMBER? – CLICK HERE
FALLING UK RETAIL SALES: A ANALYTS’ VIEW – CLICK HERE
THE STOXX 600 PROGRESS, BUT REMAINS ON A WEEKLY DECLINE – CLICK HERE
THE REBOUND IN EUROPEAN STOCKS SHOULD CONTINUE – CLICK HERE
CHIP RECOVERY CONTINUES, EXCEPT IN CHINA – CLICK HERE