Markets Dawn Europe: Tue 3 Sep
Podcast 🎧 Extended Transcript 📄 Data 📊 Charts 📈
Good morning,
Monday was a quiet day in markets due to the U.S. holiday and on uneventful days we keep it shorter than usual. European equities ended little changed despite the German regional elections result. Bond markets did feel the impact as Bund yields shifted higher by 4-5bp across tenors to their highest level in four weeks. 10-yr Bunds closed at 2.34%.
There were no significant moves among Stoxx 50 members' and those worth mentioning outside large-caps include Rolls Royce (mcap £39bn), which lost 6.5% after Cathay Pacific Airways launched an inspection of all its Airbus 350 fleet following an engine component failure. Also, British property group Rightmove (mcap £5.5bn), jumped 27% to its highest level in 2.5 yrs following an announcement of a potential acquisition by Australia’s REA Group (mcap $18bn).
In data updates, manufacturing PMIs for August in Germany (42.4 pts), France (43.9) and Italy (49.4) came in better than expected, a touch higher than in July but are still in contraction territory. Spain’s PMI slowed from a month ago but remains in expansionary territory (50.5) while Switzerland showed a sharp improvement (49.0).
Also, Italy’s producer prices accelerated 1.3% in July bringing the annual deflation in wholesale prices to 1.1%.
Data to be released today include inflation and GDP in Switzerland and manufacturing PMI in the U.S. There are no earnings reports scheduled by blue-chip companies.
In Asia this morning, equities are mixed with Japan and Singapore benchmarks advancing while Hong Kong, Korea and Taiwan are a touch weaker. European futures and currencies are mostly unchanged.
That’s all for today.
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