Europe: mind the services-manufacturing gap
STOXX Europe 600 up 0.1%
Caution over US debt limit talks
Ruling conservatives win in Greece
U.S. stock futures steady
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
EUROPE: MIND THE SERVICES-MANUFACTURING GAP (1018 GMT)
The diverging economic fortunes for Europe's slowing manufacturing and the growing services sectors has led to the widest gap ever in the region's PMIs, Goldman Sachs has found.
But what does this mean for equities?
According to the U.S. bank this should put goods-related stocks under pressure, but recent share price trends seem to suggest that manufacturing data might be somewhat too gloomy.
"Goods-related sectors tend to underperform services sectors when the PMI gap widens, but recently our Goods basket has outperformed Services - ignoring the gap in sentiment data, potentially implying that sentiment data exaggerates the real economic impact," argues Goldman in a note.
(Danilo Masoni)
*****
DEBT CEILING RISKS WORSE NOW THAN IN 2011 - JPM (0903 GMT)
J.P.Morgan believes there's a non-zero probability of the U.S. government defaulting on its debt and risks of that happening seem be growing as time for a deal is running out.
And for risk assets like stocks this means that any potential selloff could be sharper now than in 2011 when the last debt ceiling talks in the U.S. were held.
JPM analysts led by Dubravko Lakos-Bujas say monetary conditions are tighter now than in 2011, while money supply is collapsing and inflation is at record high.
"The two major investment implications related to the debt ceiling and Federal spending is the potential for a violent risk-off move in equities as we get closer to the projected X-dateof early June without a broadly supported resolution and the potential for Federal spending cuts across key Biden legislative priorities," JPM writes.
Lakos-Bujas in fact expects a temporary and comprehensive debt dealto negatively impact Federal spending and set up fiery budget negotiations later this year.
(Aniruddha Ghosh)
*****
STOXX INCHES UP, ATHENS AT 2014 HIGHS (0758 GMT)
European shares kicked off the session cautiously higher as uncertainty over U.S. debt ceiling talks kept traders on edge, but in Greece the mood was much more buoyant after elections gave the ruling New Democracy party a commanding lead.
So, while the region-wide STOXX Europe 600 .STOXX index added just 0.1% in early trading, staying close to recent highs, the Athens equity benchmark .ATG index advanced 6%, climbing to its highest level since July 2014.
Banks .SX7P and basic resources .SXPP were slightly weaker while a China ban on top U.S. memory chipmaker Micron had no evident repercussions on European chip stocks. Telecoms .SX7P led sectoral gainers, up 0.7%. A profit warning sent Dechra Pharma down almost 7% to the bottom of the STOXX.
Here's your opening snapshot:
(Danilo Masoni)
*****
EUROPEAN FUTURES FLAT (0636 GMT)
European equity index futures signalled a flat start to the week on Monday as twist and turns in U.S. debt ceiling negotiations kept investors on the sidelines.
EuroSTOXX50 and FTSE contracts were last trading down 0.1% and unchanged respectively, while U.S. futures also hovered around parity following losses on Friday.
U.S. President Joe Biden and House Republican Speaker Kevin McCarthy will meet to discuss the debt ceiling late in the day.
Corporate newsflow in Europe was rather thin so far.
Chip stocks could come in focus after a move by China to bar U.S. firm Micron from selling memory chips to key domestic industries. Eyes also on Adidas after shares of U.S. peer Foot Locker sank on Friday following a profit warning.
Ryanair posted a near record annual profit and said it was cautiously optimistic that profits would rise modestly in the next 12 months, with summer demand notably robust.
In M&A, Henkel CEO said in a newspaper interview that German consumer goods group was on the lookout for acquisitions, spurred by its strong financial position and low debt.
A large number of stocks in Italy go ex dividend on Monday. That is expected to knock more than 1 percentage point off the FTSE MIB benchmark index.
(Danilo Masoni)
*****
NOT SO FAST, DEBT CEILING BULLS!(0552 GMT)
You didn't think it would be that easy, did you?
Investors are on edge after equities and the dollar got knocked back Friday, when Republican negotiators unexpectedly walked out of debt ceiling talks.
Discussions now seem to be back on track, with President Joe Biden due to meet House Republican Speaker Kevin McCarthy later today. But the brinkmanship highlights that as long as there is no deal, the potential for a disastrous U.S. default is impossible to ignore.
Time is running out, with less than two weeks before the ostensible "X-date" for the Treasury to run out of money in early June.
The dollar was heavy in Asia, and equities around most of the region declined, portending weakness when Europe wakes up as well.
A notable exception was China, with stocks gaining on the mainland and in Hong Kong, where the Hang Seng bounced from a two-month trough.
One reason: the mood music out of the weekend G-7 summit was much gentler on Chinese ears than some feared, expressing a desire to "de-risk, not decouple" on economic ties to China.
At the same time, though, China stepped up its dispute with the U.S. over chip technology, failing Micron Technologies products in a security review.
Another potential boost comes from the PBOC's assessment that the fundamentals of China's economic stability and long-term improvement have not changed.
Europe's macro calendar is fairly light today, although ECB officials may want to keep an eye on euro-area consumer confidence figures for this month, following its aggressive monetary tightening campaign. Central bank chief Christine Lagarde sent a clear hawkish signal on Friday, telling policy makers to "buckle up".
Luis de Guindos and Philip Lane are among Lagarde's ECB colleagues on speaking duty today.
In the U.S., Monday's Fed speakers include James Bullard, Raphael Bostic and Tom Barkin - though they risk being drowned out by Chair Jay Powell's comments from Friday that his preference is to pause next month, instead of hike.
Key developments that could influence markets on Monday:
Eurozone consumer confidence report
ECB's Luis de Guindos and Philip Lane speaking
Fed's Bullard, Bostic and Barkin speaking
(Kevin Buckland)
*****
How US deficit reduction plans compare https://tmsnrt.rs/3Iog4rq
Eu open https://tmsnrt.rs/41YGKpu
PMI gap euro zone https://tmsnrt.rs/3MNcREj
Ähnliche Finanzinstrumente
Neueste News
Rechtlicher Hinweis: Die Unternehmen der XM Group bieten Dienstleistungen ausschließlich zur Ausführung an sowie Zugang zu unserer Online-Handelsplattform. Durch diese können Personen die verfügbaren Inhalte auf oder über die Internetseite betrachten und/oder nutzen. Eine Änderung oder Erweiterung dieser Regelung ist nicht vorgesehen und findet nicht statt. Der Zugang wird stets geregelt durch folgende Vorschriften: (i) Allgemeine Geschäftsbedingungen; (ii) Risikowarnungen und (iii) Vollständiger rechtlicher Hinweis. Die bereitgestellten Inhalte sind somit lediglich als allgemeine Informationen zu verstehen. Bitte beachten Sie, dass die Inhalte auf unserer Online-Handelsplattform keine Aufforderung und kein Angebot zum Abschluss von Transaktionen auf den Finanzmärkten darstellen. Der Handel auf Finanzmärkten birgt ein hohes Risiko für Ihr eingesetztes Kapital.
Sämtliche Materialien, die auf unserer Online-Handelsplattform veröffentlicht sind, dienen ausschließlich dem Zweck der Weiterbildung und Information. Die Materialien beinhalten keine Beratung und Empfehlung im Hinblick auf Finanzen, Anlagesteuer oder Handel und sollten nicht als eine dahingehende Beratung und Empfehlung aufgefasst werden. Zudem enthalten die Materialien keine Aufzeichnungen unserer Handelspreise sowie kein Angebot und keine Aufforderung für jegliche Transaktionen mit Finanzinstrumenten oder unverlangte Werbemaßnahmen für Sie zum Thema Finanzen. Die Materialien sollten auch nicht dahingehend aufgefasst werden.
Alle Inhalte von Dritten und die von XM bereitgestellten Inhalte sowie die auf dieser Internetseite zur Verfügung gestellten Meinungen, Nachrichten, Forschungsergebnisse, Analysen, Kurse, sonstigen Informationen oder Links zu Seiten von Dritten werden ohne Gewähr bereitgestellt. Sie sind als allgemeine Kommentare zum Marktgeschehen zu verstehen und stellen keine Anlageberatung dar. Soweit ein Inhalt als Anlageforschung aufgefasst wird, müssen Sie beachten und akzeptieren, dass der Inhalt nicht in Übereinstimmung mit gesetzlichen Bestimmungen zur Förderung der Unabhängigkeit der Anlageforschung erstellt wurde. Somit ist der Inhalt als Werbemitteilung unter Beachtung der geltenden Gesetze und Vorschriften anzusehen. Bitte stellen Sie sicher, dass Sie unseren Hinweis auf die nicht unabhängige Anlageforschung und die Risikowarnung im Hinblick auf die vorstehenden Informationen gelesen und zur Kenntnis genommen haben, die Sie hier finden.
