Markets Dawn Europe: Tue 25 Jun
Podcast 🎙 Data 📊 Script 📄
Good morning,
Markets in Asia are trading firmer today following yday's steep drop in the US tech sector from record highs. Shares in Tokyo are rallying 1.3% and Sydney is closing around 1% higher while other markets are mixed. European futures are pointing to a weaker open with the Dax now lower by 0.7%. The $ is a touch weaker this morning, the ¥ hit a record low against the € and Bitcoin is recovering 3% after plunging more than 7% yday. Brent crude oil remains steady at $86 following a positive session.
In Wall Street, Nasdaq indices had their worst day in two months, down more than 1% driven by a steep drop in Nvidia (mcap $2.91tn, P/E 69x), down 6.7% and accumulating a 16% decline from its all-time high last Thursday, erasing more than half a trillion dollars in market value. The driver is no other than profit-taking following Nvidia’s meteoric rise.
European equities had a positive trading day with all country benchmarks ending higher and Brussels (+2%) and Milan (+1.6%) as the outperformers.
Shares in Paris-listed healthcare company Eurofins Scientific SE (mcap €8.5bn) plunged 16% yesterday to the lowest in four years after US short-selling fund Muddy Waters disclosed a position and warned of potential accounting inconsistencies. Â
Interest rate markets finished almost unchanged ahead of Friday’s US inflation update and Bund futures are a touch higher in early morning trading.
Headlines,
-Apple faces another probe after being charged by the EU antitrust regulator with breaching tech rules on fair competition. It’s the European Commission's first probe under the new Digital Markets Act and a decision can take up to nine months. Apple shares ended flat.
-Macron said that France’s extreme opposition parties, the far-right and the new left alliance could trigger a civil war.
In corporate deals, Covestro AG (Germany, chemicals, mcap €10.2bn) is in advanced talks with energy company Abu Dhabi National Oil after this improved its bid to €11.7bn or €62/share. Covestro shares advanced 5% to €53.86.
Sonoco Products (US, paper packaging, mcap $5.5bn) will acquire European food packaging maker Eviosys from KPS Capital Partners for €3.6bn.
In credit markets, HPS Investment Partners raised more than $14bn to create one of the largest private credit funds called Specialty Loan Fund VI which will have a buying power of $21bn including leverage to allocate in asset-backed and investment-grade securities. HPS manages $114bn in total.
In IPOs, Chinese fast-fashion online retailer Shein is closer to going public on the London Stock Exchange after deciding not to list in New York due to the geopolitical tensions between Beijing and Washington. It is expected to achieve a valuation of more than $60bn.
Today’s data releases include inflation in Canada, consumer confidence in the US, and PPI in Sweden.
That’s all for today, see you tomorrow.
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