Markets Dawn Europe: Tue 14 by 7AM UKT (8AM CET)
Brief Podcast 🎙 + Data 📊 + Script 📄
Script: Estimated reading time ⏲ ~4 mins
Good morning,
It was a quiet start to the week with developed markets ending little changed across asset classes on both sides of the Atlantic. The Stoxx 600 and S&P 500 finished flat while the Nasdaq Composite, Spain’s Ibex and Italy’s Mibtel managed to close a touch firmer. On a week-to-date basis, European stocks are outperforming those in the US with a 2.5% gain for the Eurostoxx 50. Bond yields and currencies also had a calm Monday ahead of tomorrow's key US inflation update.
Bitcoin advanced 4% yesterday and is now dealing at $62,500. Asian stocks are flat to marginally weaker today and FTSE futures are pointing to a lower open while EuroStoxx 50 futures are steady. Bund futures are unchanged and Brent is at $83.50.
-Trump’s former lawyer Michael Cohen testified in court that his former boss ordered him to pay the adult film star for her silence ahead of the presidential election.
-US Secretary of State Anthony Blinken is visiting Ukraine today to reinforce Washington’s support following the Senate delay in approving the latest $60bn aid for weapons. He arrives during Russia’s offensive in the northeast of the country.
In commodities, cocoa futures plunged 20% yesterday to $7,166 per ton in the US, on a highly volatile session, as traders take profits despite fundamentals remaining supportive as the global deficit persists.
In corporate deals, mining giant BHP improved its takeover bid for Anglo-American by 10% to nearly $43bn but was once again rejected by Anglo’s board on the basis that it still significantly undervalues the company’s standalone potential. Anglo opposes the divestment of its South African businesses to proceed with a deal. Shares dropped 2.3%.
Squarespace, the US website design services company is being taken over by private equity firm Permira in a $7bn all-cash deal. Squarespace competes with WordPress, Shopify and Wix. Shares rallied 13% to a 2.5-year high. Permira is bidding $44 per share, equal to a 15% premium.
In the pharmacy retail sector, US-listed Walgreens Boots Alliance is seeking potential bidders for its British Boots drugstore chain, estimated to be worth around £7bn. Walgreens' total market value stands at $16bn after shares added 5.5% yesterday.
In business news, Intel is planning an $11bn investment to build a chip facility in Ireland to be financed by Apollo Global, according to media reports. Shares advanced 2%.
Debt capital markets remain active with new bond issuance by BMW (8.5yr at 3.5%), Lufthansa (6yr at 4.17%) and Munich Re (20yr at +187bp) placing senior euro-denominated bonds. In the dollar market, Johnson & Johnson (5, 7, 10, 30yr) and Toyota (5yr) each sold tranches of $1bn.
Today’s economic releases include German and Spanish final inflation figures for April, British employment data and in the afternoon, US PPI inflation. In central banking speeches, we’ll hear from Bank of England’s chief economist Pill and Fed Governor Powell who is in The Netherlands. EU finance ministers meet at Ecofin in Brussels.
Blue-chip companies reporting include Bayer, Vodafone, Foxconn, Sony, Alibaba and Tencent.
That’s all for today, see you tomorrow.
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