Stocks, News, Data, Earnings

The euro fell on Tuesday morning and was trading 0.69% lower against the US dollar at $1.096 as of 11:55 a.m. London time.

The euro fell 0.15% against the British pound to 0.866 pounds.

Investors are assessing another gloomy Eurozone manufacturing report and looking forward to a slew of inflation numbers from France, Spain, Italy and Germany, as well as job and non-farm payrolls in the US, to be released later this week. are doing.

The U.S. dollar index rose 0.61%, continuing a cautious rally from late 2023 as all eyes were on whether the Federal Reserve will deliver on market expectations for interest rate cuts this year.

European stock markets started higher on Tuesday.

The benchmark Stoxx 600 index was up 0.43% as of 8:05 a.m. London time, with most sectors gaining. Oil and gas led the gains, rising 1.3% while technology stocks fell 0.2%.

Germany’s DAX and France’s CAC40 both rose about 0.5%, while Britain’s FTSE100 rose 0.25%.

UK food price inflation slowed to 6.7% in December from 7.7% the previous month, according to figures compiled by the British Retail Federation.

This will bring the price increase rate to the lowest level since June 2022.

Overall in-store price growth remained unchanged at 4.3%.

“Retailers will continue to do everything in their power to keep prices down in 2024, but there are obstacles ahead, with new border checks on EU imports and business rates charges starting in April leading to more billions of dollars,” said Helen Dickinson, the company’s chief executive. This was announced by the British Retail Consortium.

— Jenny Reid

A private survey showed an expansion in China’s manufacturing activity in December, contradicting a similar survey conducted by the country’s statistics bureau that reported a contraction.

The Caixin Manufacturing Purchasing Managers’ Business Conditions Index stood at 50.8 in December, following a reading of 50.7 in November. China’s official PMI in December was 49.0, down from 49.4 the previous month, the National Bureau of Statistics said in a statement on Sunday.

PMI readings above 50 indicate expansion in activity, while readings below that level indicate contraction.

— Clement Tan

Energy stocks may have had a tough year, but Goldman Sachs sees a future in big European oil, naming integrated oil stocks as its theme for the new year.

“We’re at a tipping point, with major European oil companies starting to outperform major U.S. oil companies and potentially closing the 40% valuation gap with their U.S. peers,” said an analyst at the investment bank.

That’s why investment banks have given a positive outlook for Big Oil, even as oil prices have risen as major shipping lines and oil carriers halted sailings through the Red Sea. The oil outlook for 2024 is also disappointing, with the International Energy Agency expecting the economic slowdown to continue next year.

Still, Goldman points out that “the major EU oil companies are now being screened as attractive thanks to their enhanced buyback programs, leading to double-digit cash returns for shareholders.” I mentioned it.

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— Amara Balakrishna

The Dutch government has partially revoked semiconductor equipment maker ASML’s license to export two systems used to make advanced chips to China.

“The license to ship NXT:2050i and NXT:2100i lithography systems in 2023 was recently partially revoked by the Dutch government, affecting a small number of customers in China,” ASML said in a statement. .

The NXT:2050i and NXT:2100i are deep-UV lithography machines used for high-volume production of cutting-edge logic and memory chips.

The company said it does not expect this action to have a material impact on its 2023 financial outlook.

ASML has been restricted from exporting extreme ultraviolet lithography equipment to China by the Dutch government in an effort to contain Chinese chip manufacturing technology. ASML does not currently ship any equipment to China.

— Sheila Chan

From family offices to financial advisors, interest in alternative assets appears to be on the rise, but there seems to be controversy over whether individual investors should invest in them.

Caesar Sengupta, CEO of financial services firm Alta Finance, argues that there is “incredible value in the private market” and that this asset should not be overlooked.

Saxo’s chief investment officer Steen Jacobsen has argued elsewhere that retail investors need to be cautious when dabbling in alternative investments.

“I think you need more knowledge than an individual individual investor to get into these. My advice is not to buy, even if it’s priced perfectly,” he said, adding that he doesn’t know which assets he wants to buy in 2024. He added that he was bullish about the class.

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— Amara Balakrishna

European markets are set to open higher on Tuesday as investors begin trading in 2024.

The UK’s FTSE 100 index is expected to rise 20 points to 7,742, Germany’s DAX is expected to rise 48 points to 16,799 and France’s CAC is expected to rise 27 points to 7,570, according to IG data.

There are no major data releases on Tuesday.

— Holly Ellyatt