European markets close lower as investors await US inflation data; Atos falls 14% on its debt plan – CNBC

US stocks opened higher on Tuesday as markets regained momentum ahead of the release of key US inflation data.

The Dow Jones Industrial Average rose 0.2% in early trading, while the S&P 500 gained 0.4%. The tech-heavy Nasdaq Composite also added 0.6%.

Gwenaelle Avice Huet, executive vice president of European operations at Schneider Electric, discusses climate priorities and promoting sustainable development.

Edmund Shing, chief investment officer at BNP Paribas Wealth Management, discusses the outlook for gold and silver prices.

HSBC announced on Tuesday that it would sell its banking operations in Argentina to Grupo Financiero Galicia for $550 million. The company will record a pretax loss of $1 billion on the sale in the first quarter of 2024.

The bank said this would have no tangible impact on its Common Equity Tier 1 capital ratio – a measure of a bank’s financial strength – and would be excluded from its dividend distribution calculation.

The deal is expected to close within the next 12 months.

Noel Quinn, HSBC group chief executive, said it would allow the company to focus on “higher value opportunities” internationally.

“HSBC Argentina is largely a domestic market-focused business, with limited connectivity to the rest of our international network. In addition, given its size, it also generates significant volatility in the Group’s profits when its results are converted into US dollars. Galicia is better placed to invest and grow the business,” Quinn said in a statement.

“We remain committed to Mexico and the United States, and to serving our international clients across our global network with our industry-leading transaction banking capabilities.”

HSBC shares were up 0.16% as of 9:11 a.m. in London.

-Jenni Reid

Oil major Shell is considering all listing options, including the possibility of moving its listing from London to New York, the company’s CEO Wael Sawan said in a Bloomberg opinion piece.

A Shell spokesperson confirmed the quotes to CNBC on Monday, adding that they did not reflect a change in the company’s position, which remains focused on “creating more value with fewer emissions”, the reducing operating costs and providing better returns for shareholders.

These and other factors should help close the “valuation gap”, the spokesperson said, adding that the company would consider exploring other options if this target was not achieved at – beyond 2025.

Shell is one of the largest companies listed on the London Stock Exchange, which is seeking new listings to reinvigorate London’s appeal as a financial center. Shell shares were up 0.68% as of 8:48 a.m. London time.

— Ruxandra Iordache

Shares of BP rose 1.3% in early trading, hitting their highest level since October after the oil major said it expected higher first-quarter upstream production in the oil and gas sector. gas.

In a trading update on Tuesday, the company also said it expected “strong” results in oil and gas trading, but negative impacts related to achievements in gas and energy. low carbon emissions and the devaluation of the Egyptian pound.

-Jenni Reid

European stock markets were slightly lower on Tuesday morning, with the pan-European Stoxx 600 index down 0.15% at 8:20 a.m. in London.

The main stock markets were in the red, with the German DAX down 0.4% and the French CAC 40 down 0.25%. The UK’s FTSE 100 index fell 0.08%.

Troubled French IT consultancy Atos on Tuesday announced a series of demands to restructure its debt, including 600 million euros ($651 million) in cash to fund its operations over the next two years.

This amount will be raised through debt and equity from existing stakeholders or third-party investors, he said.

It is targeting a BB credit profile by 2026 and its remaining debt maturities have been extended by five years.

The company is expected to carry out cybersecurity operations during the Paris Olympics and also has contracts with the French secret services. French authorities have already said they will protect the company’s strategic assets after a series of setbacks.

Atos shares soared 19% on Monday after major shareholder Onepoint said Paris-based investment firm Butler Industries was joining its rescue consortium.

-Jenni Reid

The data center sector is expected to grow rapidly in the coming years, according to UBS.

The investment bank predicts that the data center sector will grow between 15% and 20% in 2024 and 2025, and “healthy” double-digit growth in the following years.

He names three related stocks to follow the trend.

CNBC Pro subscribers can learn more here.

— Weizhen Tan

European markets are expected to open mixed on Monday.

Britain’s FTSE 100 index is expected to open 41 points lower at 7,952, Germany’s DAX up 23 points at 17,921, France’s CAC up 4 points at 8,004 and Italy’s FTSE MIB down 8 points to 33,112, according to IG data.

The data released includes Israeli inflation figures for March. There are no major results published.

—Houx Ellyatt