EUROPEAN EQUITY OPEN: Indices open flat/lower ahead of final PMI data; US ISM and JOLTs data ahead

European equity futures opened around flat. Overnight the RBA kept rates unchanged, but suggested further tightening could be seen; China's Caixin Manufacturing PMI data disappointed expectations. The corporate earnings slate has been particularly busy; highlights include HSBC (HSBA LN) profits topping expectations, announces new buyback. In energy, BP (BP/ LN) reported a sharp profit drop in Q2 amid lower energy prices, buybacks to be at slower pace this quarter. Shell (SHEL LN) reportedly to resume Nigeria oil field sale talks. Automakers will note Toyota (TM) profits jumped 78% in Q1 as parts supply eases. Aston Martin (AML LN) to undertake share placing for GBP 210mln. In staples, Diageo (DGE LN) FY organic sales top estimates, expects FY24 operating environment challenges to persist with continued cost pressure. In industrials, Atos (ATO FP) to sell Tech Foundations to EPEI, (EV EUR 2.0bln), appoints Paul Saleh as CFO. In materials, Rio Tinto (RIO) CEO said it was looking at a number of possible lithium interests, focusing on small bolt on buys and not big acquisitions. Covestro (1COV GY) sees FY EBITDA at the lower-end of range. In healthcare, FDA approves GSK's (GSK LN) jemperli plus chemo. (Our full European equity briefings for August 1st can be accessed here and here) Final PMI data is the focus in the European morning, and the major economies are expected to see unrevised readings. The US day brings the ISM manufacturing report and JOLTS data.

TODAY’S AGENDA:

• An interactive calendar can be accessed here; a pdf version can be downloaded here.


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  EUROPEAN DAY: Final PMI data for July are expected to be unrevised for the Eurozone, France, Germany, UK. Germany unemployment seen steady in July. UK to sell GBP 4bln of 2025 debt.


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  US DAY: ISM manufacturing seen improving at the headline level, but still expected to remain sub-50.0 (see below for preview). JOLTs seen paring in June to 9.62mln from 9.82mln. Elsewhere, June construction spending data, and the weekly RedBook data are due. Fed’s Goolsbee (2023) will speak again on Tuesday.


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  PREVIEW - ISM MANUFACTURING (15:00BST/10:00EDT): The ISM manufacturing headline is expected to improve slightly, but remain sub-50.0, with the consensus forecasting 46.8 from the prior 46.0. S&P Global's PMI data alluded to an improvement in manufacturing conditions in July, with operating conditions deteriorating at a slower pace, owing mainly to steady production and fewer declines in new orders. However, manufacturers reduced input purchases and inventories as demand remained weak, leading to improved supplier delivery times. Cost-cutting efforts were also evident amid muted domestic and international demand.


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  US CORPORATE EARNINGS: Today’s highlights include: MPC, MAR, CAT, MRK, PFE, UBER, MO, SBUX, AMD. Our full Daily US Earnings Estimates can be accessed here.


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  ENERGY: After the US close, the API weekly inventory report will be released. This week, crude stocks are expected to draw 0.9mln, distillates are seen building 0.8mln, while gasoline stocks are expected to draw down by 1.4mln.

01 Aug 2023 - 08:10- EquitiesData- Source: Newsquawk