Newscasts - Europe Markets Briefing: Stocks rise, but French no-confidence vote looms

VSBLTY Groupe Technologies

03/12/2024 16:19

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Source: 'Reuters - Business videos'

Description: Share market sentiment was upbeat in Europe on Tuesday despite
the prospect on Wednesday of a no-confidence in France, the euro zone's
second-largest economy. Also in the diary are final services PMIs for the UK
and the euro zone, and euro zone producer price data.
Short Link: https://refini.tv/3Bei6Kh

Video Transcript:

Market's positive, despite crisis in France. Welcome to your Europe Markets
Briefing. I'm David Pollard. The STOXX 600 was gaining today and the FTSE 100
extended gains as a rise in oil prices lifted heavyweight energy shares. While
EasyJet jumped to a near 8 month high, after multiple brokerages raised their
target price on the budget airline. The CAC 40 was lagging slightly, but still
in positive territory for much of the day. Despite the ongoing political
crisis in France that adds French lawmakers vote on Wednesday evening on a no
confidence motion, seen as all but certain to oust the fragile coalition of
Michel Barnier. The risk premium investors demand to hold French debt rather
than German Bunds steady close to its highest levels in more than 12 years,
with a collapse in the government potentially stalling plans to curb a
burgeoning budget deficit. After Monday's factory data confirmed a sharp fall
in output, HCOB data on Wednesday is expected to show healthier services
output for both Germany and the Eurozone if still below the 50 level, with the
final composite reading forecast at 48.1. UK services PMI data from S&P is
expected to confirm a reading of 50, exactly on the line between expansion and
contraction. October producer prices for the Eurozone, meanwhile, are seen
with a yearly drop of 3.3%. Oil prices have risen over 1% today, ahead of
Thursday's OPEC+ meeting. Risk premiums are on the rise, with holds continuing
to appear in a US brokered ceasefire between Israel and militant group
Hezbollah. And sources told Reuters today that the group is likely to extend
its latest round of oil output cuts until the end of the first quarter to
provide additional support for the oil market. One analyst told us that would
be a good decision.

It could be a decision to delay it by one to three months, potentially a one
quarter, but I think the decision making that has been in place over the past
2-3 months IE short delay one month or two months has been quite efficient at
limiting the downside. And so, we expect that to continue.

In other news today, Standard Chartered said it will target $200 billion in
new assets and double-digit growth in income from its wealth business over the
next five years as part of a wider strategy to shift to higher fee earning
business. TotalEnergies is close to acquiring vertically integrated renewable
developer VSB Group from private equity firm Partners Group, according to
Bloomberg, with the French oil major expected to pay about EUR2 billion. And a
case was filed in the UK today against Microsoft claiming that thousands of
businesses using cloud computing services provided by Amazon, Google, and
Alibaba could be paying higher license fees to use Windows Server software.
The claim says compensation could run to over GBP1 billion. And that is Europe
Markets Briefing