Monday, April 8, 2024, 10:49 a.m. EDT
Oil giant Shell reportedly considering abandoning London for New York
A Shell logo displayed on a sign at a gas station in Nakuru, Kenya.
Sopa Images | Light flare | Getty Images
British oil giant Shell is considering abandoning the London Stock Exchange for a listing in New York, the Telegraph newspaper reported on Monday.
CEO Wael Sawan said the company was exploring “all options,” fearing it might not get enough support from investors.
“I have a location that seems clearly undervalued,” he said.
The departure of the largest company from the FTSE 100 would be a blow to the British stock market, which is struggling to maintain its importance amid weak economic growth and market uncertainty caused by Brexit.
A Shell spokesperson told CNBC the comments followed plans outlined at the company’s June 2023 capital markets day aimed at closing a perceived “valuation gap.”
“Beyond 2025, if the valuation has not gotten to where we think it should be, then as Wael has stated publicly on several occasions, we will explore other options,” the spokesperson added. word.
-Karen Gilchrist
Monday, April 8, 2024, 9:38 a.m. EDT
US stocks open higher
US stocks opened higher on Monday as Wall Street tried to regain momentum after a pullback last week.
The Dow Jones Industrial Average opened up 0.11% while the S&P 500 was flat. The Nasdaq was up 0.13% in early trading.
-Karen Gilchrist
Monday, April 8, 2024, 8:49 a.m. EDT
German industrial production suggests ‘end of stagnation’
Better-than-expected German industrial production figures released Monday suggest “an end to stagnation in the first quarter,” Carsten Brzeski, global head of macro at ING, said in a note.
Industrial production rose 2.1% month-on-month in February, well above the 0.3% growth expected by analysts polled by Reuters.
“While confidence indicators in German industry have been stuck at low levels since the end of last summer, this morning’s industrial data already point to the end of stagnation in the first quarter,” Brzeski said.
The expected cut in interest rates by the European Central Bank, lower energy prices and the strength of the US economy will be favorable for German industry, he said.
He stressed, however, that this was not the start of a “significant recovery” given the recent weakness in industrial orders and the reduction in inventories.
-Jenni Reid
Monday, April 8, 2024, 7:15 a.m. EDT
Gold looks ‘very vulnerable’ to setback, says senior advisor
Gold prices extended their record run on Monday, hitting a new all-time high amid robust U.S. economic data and heightened geopolitical tensions.
Spot gold prices rose 0.5% to trade at $2,342 an ounce around 11:45 a.m. London time, after briefly hitting a new record high of $2,353 earlier in the session. The yellow metal has repeatedly reached all-time highs in recent weeks.
However, Bob Parker, senior advisor to the International Capital Markets Association, believes gold’s fundamentals paint a pessimistic picture of the future. This includes the strong US dollar, rising bond yields, mounting doubts about the Federal Reserve’s rate cut plans and “reasonably” low inflation.
“All of these factors actually suggest that the upside potential for gold is frankly minimal and I think gold is now very vulnerable to a setback,” Parker said.
Read the full story here.
—Sam Meredith
Monday April 8, 2024, 6:45 a.m. EDT
Economists increasingly uncertain about Fed rate cuts this year
The Federal Reserve is determined not to cut interest rates too soon — and some economists say recent data has ruled out a summer cut altogether.
Friday’s jobs report reiterated the seemingly unwavering strength of the U.S. labor market and suggested the need for greater caution from the Fed. All eyes will now be on Wednesday’s consumer price index, after February’s annual inflation rate of 3.2% was slightly above expectations.
George Lagarias, chief economist at Mazars, told CNBC on Monday that rate cuts this summer now look much less likely.
“It’s a strong economy. Make no mistake, it’s backed by debt and to some extent overextended credit cards, but it’s a strong economy. So the Fed will have a hard time finding quickly arguments to reduce rates,” Lagarias said.
“The Fed has punished itself since 2021, when the “transitional team” apparently got it wrong… What it believes is that it can no longer be wrong, which means that “She’s more likely to err on the side of caution,” Lagarias added.
Read the full story here.
-Jenni Reid
Monday April 8, 2024, 5:45 a.m. EDT
Atos stock jumps 30% after Butler joins rescue consortium
See the table…
Atos share price.
Shares of French IT consultancy Atos were up 30% in mid-morning trading after major shareholder Onepoint said investor Butler Industries was joining a consortium to save the company.
French Prime Minister Gabriel Attal said last week that ensuring the financial security of the struggling company was a national priority. Its projects involve communications for the French military and secret services and manufacturing supercomputers, and it is expected to manage cybersecurity for this summer’s Paris Olympics.
-Jenni Reid
Monday April 8, 2024, 3:50 a.m. EDT
Stocks on the move: Zalando and Entain up, BBVA down
A Ladbrokes betting shop, operated by Entain Plc, in London, UK, Wednesday September 22, 2021.
Chris J. Ratcliffe | Bloomberg | Getty Images
Shares of German retailer Zalando rose 4.75% in early trading after Citi analysts upgraded the stock to “buy” from “neutral.”
Among the best risers, gambling company Entain rose 3% after a Times newspaper report suggested private equity firms were interested in some of its assets.
BBVA bank fell 3.4% after announcing a final dividend of 0.39 euros ($0.42) per share to be paid on Wednesday.
-Jenni Reid
Monday April 8, 2024, 3:07 a.m. EDT
European stock markets open mixed
European markets had a cautious start to the week, with the benchmark Stoxx 600 index down 0.06% as of 8:05 a.m. in London.
France’s CAC 40 and Britain’s FTSE 100 were both close to the flat line, while Germany’s DAX rose 0.2%.
See the table…
Stoxx 600 index.
Sun April 7, 2024, 7:34 p.m. EDT
CNBC Pro: Goldman Sachs Just Updated Its List of Top Global Stocks, Recommending a Specific Trading Strategy
Despite a lackluster performance last week, the pan-European Stoxx 600 index is up around 7.5% year to date and more than 15% over the past 12 months.
However, analysts at Goldman Sachs noted that investors are “wondering how much upside potential remains” and recommended investors consider a specific trading strategy.
They also updated their “conviction list” of top stock picks for April.
CNBC Pro subscribers can learn more here.
-Amala Balakrishner
Sun April 7, 2024, 6:47 p.m. EDT
Bank of America says this week’s CPI should be ‘a confidence-building report’
Economists at Bank of America say Wednesday’s inflation report should show a moderation in price pressures, which would give the Fed confidence for a rate cut in June.
The Wall Street firm expects the core consumer price index to moderate to 0.2% in March after rising 0.4% in February and January. He predicts a drop in car prices which should lead to a decline in basic goods. At the same time, the bank expects energy prices to rise more than usual.
“The moderation in core CPI is expected to reflect a decline in prices of basic goods and a more modest rise in prices of basic services,” the bank’s economists said in a note. “A report in line with our expectations would give the Fed confidence and keep a June rate cut firmly in play.”
-Yun Li
Sun April 7, 2024, 7:34 p.m. EDT
CNBC Pro: ‘Big Deals’: Morgan Stanley Names 3 Overlooked Global Tech Stocks to Buy
Morgan Stanley cites three “overlooked” global tech stocks that it says look cheap right now.
The bank said the theme of “broadening” will become more important and that “investors will increasingly look to quality small caps with attractive valuations as sources of alpha.”
He is overweight on all three stocks and offers nearly 100% upside potential.
CNBC Pro subscribers can learn more here.
— Weizhen Tan
Monday April 8, 2024, 2:25 a.m. EDT
European markets: here are the opening calls
European markets are heading for a higher opening on Monday.
According to IG data, the FTSE 100 is expected to open up 11 points at 7,913, Germany’s DAX up 29 points at 18,191 and France’s CAC 40 up 21 points at 8,078.
-Jenni Reid
Friday, April 5, 2024, 8:44 a.m. EDT
US adds 303,000 jobs in March, beating estimates
A “Now Hiring” sign for Nugget Markets is displayed on the side of a Golden Gate Transit bus in San Rafael, California, July 7, 2021.
Justin Sullivan | Getty Images
March nonfarm payrolls numbers were higher than expected Friday morning, another sign of the resilience of the U.S. labor market.
The U.S. economy added 303,000 jobs last month, surpassing the 200,000 expected by economists surveyed by the Dow Jones. The unemployment rate was 3.8%.
The average hourly wage increased 0.3% in March and 4.1% over the past year. The average work week was 34.4 hours.
—Jesse Book