World Markets Live - July 3 - CNBC Live Events

CNBC Live Events

World Markets Live - July 3

We’ll be updating you throughout the day with essential breaking news, data alerts, earnings reports and all the major market movements.

  • The yield on U.K. Gilts hit 1.295 percent today. This is its highest since March 21. The yield is up more than 3 basis points today.
  • More PMI data has been released.

    The Swiss purchasing managers index rose to 60.1 points in June versus 55.6 points in May.
    Czech manufacturing PMI for June was flat at 56.4. That's below forecasts of a rise to 57.0 points.

    Hungary's June PMI falls to 57.2 points after a revised reading of 61.9 points in May.
  • CNBC's Gemma Acton is reporting from Westminster Magistrates Court, where four ex-Barclays executives will appear in court in London today facing charges brought by the Serious Fraud Office, connected to 2008 emergency fundraising in Qatar.
  • These are the main headlines following the start of European market trade.
    • European shares kick off the second half of the year with a bang, following a largely strong day in Asia.
    • Saudi Arabia and its Gulf neighbours give Qatar another 48 hours to meet their ultimatum, after Doha says their demands were made to be rejected. 
    • China opens its $9 trillion bond market to overseas investors, as Hong Kong and China launch a fixed income trading link.
    • Beating them to the punch! President Trump takes his fight against the media to a new level, tweeting a mock wrestling video portraying him bashing a CNN logo.
  • Many companies in the FTSE 100 identify the U.K. as their single biggest source of risk. That's according to a new review by strategic advisory firm Global Counsel. The report finds that 45 percent of FTSE 100 companies are worried about the U.K.'s fiscal outlook, with over a third identifying tax policy as a concern.
    Lord Paul Myners, vice chairman of Global Counsel, says the survey has charted the major risks facing companies.
    Of course, companies are on the safer side if they report more risks, so I would expect this number to increase, but it’s risen by over 50 percent and I think that’s very striking and the political component within risk has risen more strongly than any other part.
    So companies are increasingly focused now on the political risks to achieving their business goals.
  • Italy's June manufacturing PMI order index rose to 56.0 versus 55.8 in May.
    The manufacturing PMI edged higher to 55.2 points from 55.1 in May. It was forecast to rise to 55.3 points.
  • French June final manufacturing activity rises to 54.8, compared to a flash reading of 55.0 points and a May reading of 53.8 points.
  • The euro is sliding against the dollar today. Some weaker PMI readings have knocked the currency.
  • Bank of England staff have voted to go on strike action. That's according to Reuters citing Unite.
  • German June manufacturing PMI is confirmed at 59.6 points, compared to a flash reading of 59.3. This is slightly up from May's 59.5 points.
  • Norway's sovereign wealth fund has acquired a 49 percent interest in 900 16th Street in Washington, D.C., an office building with 127,600-square-feet of space, currently occupied by Washington law firm Miller & Chevalie and with views of the White House.
    The investment cost $74 million, valuing the property at $151 million.
  • Euro zone June final manufacturing PMI comes in at 57.4, its highest since April 2011. Euro zone output PMI rose to 58.7, also highest since April 2011.
  • These are the top stories for the hour.
    • European markets on the rise, as solid manufacturing numbers come out of Germany, France and Italy.
    • Saudi Arabia and its Gulf neighbours give Qatar another 48 hours to meet their ultimatum, after Doha says their demands were made to be rejected. 
    • China opens its $9 trillion bond market to overseas investors, as Hong Kong and China launch a fixed income trading link.
  • Euro zone PMI data is at multi-year highs. The euro is weaker following the news, but European stocks markets are rising.
  • Akzo Nobel has announced it is acquiring U.K.-based Flexcrete Technologies. It has also agreed to acquire French manufacturer DISA Technology.
    Shares in the Dutch company are up more than 1 percent today.
  • Total shares are rising on the back of a $4.8 billion gas deal it signed with Iran. It's Tehran's first major energy contract with a European oil company in more than a decade. 

    A consortium led by Total is investing to develop the world's biggest gasfield, South Pars. The agreement comes only weeks after the U.S. senate approved new sanctions against Iran. 
    Meanwhile, Vivendi has acquired Bollore's 59 percent stake in Havas for 9 euros 25 cents a share.

    In accordance with market regulations, the French media company said it will now make a full buyout offer for the rest of Havas.
  • Optimism is starting to return to hedge funds. Overall hedge fund performance has achieved its 7th straight monthly gain, according to the HFRI Index. This is its 14th gain in 15 months. 
    Outflows, however, are still an issue. $9 billion left European managers in the first quarter of this year.
    Karsten Schroeder, CEO of Amplitude Capital, says the last couple of years have been challenging for hedge funds.
    Depending on the strategies you’re looking at, it wasn’t easy. But we’ve seen a good pick-up on performance this year. If we compare numbers, 3, 4, 5 percent up for the year, which is not too bad. Credit strategies have come back. Our long-shot equity is doing pretty well  and also the sentiment from investors has recovered a bit. 
  • The dollar is performing well against other world currencies today. It hit a six-week high against the Japanese yen, hitting 112.94 yen earlier in the session.
  • U.K. manufacturing PMI for June came in at 54.3 points, down from a revised reading in May of 56.3 points, according to IHS Markit. It was forecast to rise to 56.5 points.
    PMI output hit a 3-month low of 55.9, versus May's 57.2, while new export orders hit a 5-month low of 52.6 versus May's 53.4 points.
  • Sterling dipped against the dollar following the disappointing manufacturing PMI data for June.
  • Four ex-Barclays executives, plus the bank itself, are in court in London today facing charges brought by the Serious Fraud Office, connected to 2008 emergency fundraising in Qatar.

    CNBC’s Gemma Acton is reporting from Westminster Magistrates Court.
    In 2008, there were two big capital raises by Barclays, during which the Qataris contributed around £6.1 billion in total.
    Simultaneously, Barclays lent or gave, depending on the various deals, to the Qataris around £2.4 billion worth of financing. The question is, did Barclays lend or give to the Qataris simply so they could reinvest it straight back into Barclays itself. This has issues in regards to exposure.
  • The U.K. will pull out of an agreement that allows some European countries to fish as near as 6 miles from British shores. Environment Secretary Michael Gove told the BBC that Britain will pull out of the "London Fisheries Convention," a deal from before the country joined the European Union.
    The EU's chief Brexit negotiator Michel Barnier says this move changes nothing, arguing the EU's Common Fisheries policy supersedes the London agreement.
  • U.K. insurer Compre has announced it is setting up an insurance company in Malta.
    Compre says it has received approval from the Maltese Financial Services Authority.
    It says the move to Malta is not in response to Brexit, as it had been the intention long before the U.K. referendum.
    However, the company adds that a regulated presence within the European Union would not be a disadvantage.
  • Luxembourg is emerging as a hot destination for insurers post-Brexit. Companies including AIG, Hiscox and RSA have made the country their new European hub, while firms like Allianz and Generali have consolidated their presence there. 
    Swiss Re, which also has operations in the country, says Luxembourg is "a little more business friendly" than other locations.
    Nicolas Mackel, CEO, Luxembourg for Finance, says there are several factors making the country attractive.
    First of all is the international dimension. Luxembourg is a very multi-national and multi-lingual country. You can speak English for instance with the authorities.

    Second, Luxembourg is a very stable country from an economic and political point of view. 
  • French President Emmanuel Macron is set to lay out his agenda at a speech at Versailles today. Macron will speak before a rare joint session of parliament. Macron aides have said the event will set the tone and direction of the president's mandate.
  • Euro zone May jobless rate is unchanged at 9.3 percent. The total number of jobless fell by 5,000 in May.
    Meanwhile, Danish PMI rose to 61.4 points in June.
  • Following the details that Tesla's Model 3 has passed all regulatory requirements, shares in the company are up more then 2 percent in premarket trade.
  • Lloyd's of London announces it has appointed Robert Childs, the non-executive chariman of Hiscox, as the company's deputy chairman. He will take up the position immediately.
    Childs takes over from Paul Jardine, who retired from the role earlier this year.
  • The unemployment rate in the euro zone was unchanged at 9.3 percent in May. This was in line with consensus, according to Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics. 
    The headline EZ rate of joblessness remained at a cyclical low, taking a breather following declines earlier in the year. Unemployment in Germany was unchanged at a record low of 3.9 percent, while it fell marginally in France and Spain. Unemployment in Italy rose fractionally, however, and the April data were revised up. This highlights the two key stories from these headline data.
    The overall unemployment rate in the Eurozone continues to decline, and robust GDP growth suggest that it will fall further. Divergence between the major economies, though, remains a dark spot. Most recently, Italy appears to have been left behind. 
    The euro is weaker against the dollar today, with PMI and unemployment data felling to stop the slide.
  • Spanish new car sales rose 6.5 percent year-on-year in June, according to ANFAC.
    This should help support the Stoxx 600 autos sector, which is up around 1 percent so far today.
  • A spokesman for Germany's government says numerous people have died in a bus crash in Bavaria.
    Around 46 passengers, plus two drivers, were reportedly on board the bus at the time of the crash. CNBC cannot confirm the number of dead at this time.
  • The U.S. stock market is set to open higher, starting the second half of 2017 on a good footing, according to future values. 
    The Nasdaq is recovering from its worst week of the year. It finished lower for the month of June.
  • Euro zone final manufacturing PMI rose to 57.4 in June, its highest reading since April 2011. 
    Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics, says euro zone manufacturing is going from strength to strength.
    The expansion is broad-based across all the EZ economies, and the rate of growth is sizzling. The rate of expansion rose to a six-year high in June, and employment growth increased to an impressive 20-year high. In France, the PMI rose to 54.8, from 53.8 in May, trivially below the first estimate 55.0.
    By contrast, the German PMI was pushed to a new cyclical high of 59.6, marginally above the initial estimate. Growth was strong across all sectors, but the investment goods sector stood out as a positive outlier in June. 
    Euro zone markets are performing well today, with stocks recording strong gains, partly thanks to the weaker euro.
  • Sweden's SPES unemployment rate fell to 7.2 percent in June from 7.3 percent in May, according to Reuters.
    The dollar is up against the Swedish krona today.
  • The pan-European Stoxx 600 is up solidly today, recording strong gains at the beginning of the week.
  • Shares in the electric car company are rising in premarket trade, with the stock is up nearly 3 percent. This after the company's CEO Elon Musk confirmed the new Model 3 had passed several regulatory checks ahead of schedule, speeding up production.
  • Nick Gartside, chief investment officer of the global fixed income, currency & commodities group at JP Morgan Asset Management, says supply and demand is much more in balance for the oil market.
    He says oil is stuck in its current trading range due to this balance.
    Oil was up earlier in the session, but has now slipped into negative territory.
  • U.S. stock index futures pointed to a higher open on Monday morning as investors prepared for the first trading week of the second half of 2017.

    Investors will only have three full trading days to digest a slew of economic data this week. The stock market closes at 1 p.m. on Monday and will not open Tuesday because of the Fourth of July holiday.
  • UK PM May's spokesman says not aware of any plans for U.S. President Trump to visit UK in next few weeks. He says plans for Trump's state visit will be set out in due course. That's according to Reuters.
  • The Federal Reserve has locked itself into a strategy to raise rates one more time this year despite whoever is leading the central bank, a global economist at UBS Wealth Management said.
    I think there's a realization that policy-makers are accepting we've got more normal economic growth, we've got more normal inflation, and they're going to tighten policy and that's filtering through to the bond markets, Paul Donovan told CNBC on Monday.

    Expect one more US rate hike this year even if Ivanka Trump is leading the Fed, UBS economist says

    CNBCThe Federal Reserve has locked itself into a strategy to raise rates one more time this year despite whoever is leading the central bank, a global economist of UBS Wealth Management said.
  • EU Commission says agreement in principle on trade deal with Japan is within reach. That's according to Reuters.
  • Germany's Merkel says key point of CDU/CSU election programme is employment, want full employment by 2025. Says CDU/CSU in election programme prepared to work with new French government to develop euro zone step by step, such as by creating a currency fund. That's according to Reuters.
  • European bourses were higher Monday, entering into the new month on a solid footing after markets posted gains for the first half of the year. The pan-European Stoxx 600 was up 0.63 percent, with the majority of sectors and all major bourses trading in positive territory.
  • U.S. President Donald Trump has just tweeted about his phone call with the King of Saudi Arabia:
  • Mihir Kapadia – CEO and Founder of Sun Global Investments analyses the general market overview as we begin Q3 2017:
    We have now entered the second half of 2017, further to having had a meaningful first half which saw good gains in global stock markets. The MSCI World Index is up 9.4% while the MSCI EM Index is up 17.4%. Gold is up 7.7% while Oil and Iron ore have fallen 13% and 18% respectively. The first half of 2017 had been very difficult for the US dollar, as the Dollar basket (DXY) suffered its worst stretch in six years, declining by 5.6%. It was triggered by a perception that President Trump was not unhappy to see the dollar decline, and was sustained by a growing conviction that higher interest rates in other countries boosted their currencies against the US dollar. 
    Oil futures were higher in Asia as the first decline in U.S. oil-drilling activity since January gave the market a fresh tailwind after seven-consecutive sessions of price gains. With the drop in Baker Hughes' weekly count, coming after a record 23-straight weeks of rising numbers of active rigs, WTI is trading 0.3% higher at $46.20 a barrel. 

    London spot gold hit a fresh 6-week low in Asia, down 0.2% at $1,238.10 per oz, with trading expected to be subdued ahead of the July 4 holiday in the U.S. The rollout of India's new sales-tax regime is liable to result in reduced demand initially.”  
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