DEALERS' EARLY CALL: 11.08.2020

The FTSE 100 is called to open 40 points higher at 6090. U.S. futures climbed and Asian stocks gained the most in a week on Tuesday after a drop in coronavirus hospitalizations in some U.S. states, even as global cases topped 20 million. The dollar slipped. Japanese and Hong Kong equities rose more than 2%. Shares advanced in Australia and South Korea. S&P 500 futures rose, putting the benchmark on course to approach its all-time high from February. European contracts advanced. Yields on 10- year Treasuries hovered near two-week highs. Markets are taking some comfort after New York, California and Texas reported falling hospitalizations. Chinese data underscoring a recovery in the nation’s economy also underpinned sentiment. Still, while it took six months after the virus first surfaced in China to reach 10 million infections, the spread has steadily accelerated, doubling in six weeks. Investors are also assessing simmering tensions between the U.S. and China, as well as efforts by Democrats and Republicans to put together an additional virus relief package. China said it will sanction 11 Americans in retaliation for similar measures imposed by the U.S. on Friday, but the list doesn’t include any members of the Trump administration.

UPGRADES AND DOWNGRADES

  • 3i raised to overweight at Morgan Stanley; PT 1,060 pence
  • Elementis raised to buy at Jefferies; PT 95 pence
  • Ferrexpo raised to neutral at JPMorgan; PT 240 pence
  • HSBC raised to equal-weight at Morgan Stanley; PT 360 pence
  • Suedzucker raised to buy at Commerzbank; PT 19 euros
  • Thales raised to overweight at JPMorgan; PT 88 euros
  • Henkel cut to sell at Nord/LB; PT 68 euros
  • OMV cut to equal-weight at Morgan Stanley; PT 31.80 euros
  • Banca Generali reinstated buy at Goldman; PT 30 euros
  • FinecoBank rated new buy at Goldman; PT 14.80 euros
  • Prosus rated new buy at Deutsche Bank; PT 105 euros

COMPANY NEWS

  • BP Is Said to Explore Sale of German Chemicals Unit DHC Solvent
  • Carnival: Seaborn Announces Upcoming Voyage Cancellations
  • InterContinental Hotels Swung to 1H Pretax Loss; Suspends Dividend
  • Germany Considers More Stakes After Lufthansa Investment: HB
  • Bellway FY 2020 Housing Completions Fall, Order Book Rises
  • Domino’s Pizza Group Notches 1H Profit Gain Despite Revenue Slip
  • Carlyle Said to Weigh Exit From $1.2 Billion Packager Logoplaste
  • RBI Second Quarter Net Income Beats Estimates
  • HelloFresh Sees Sales Almost Doubling as Pandemic Persists
  • Vivendi, Amber Capital Seek Lagardere Minority Board Presence
  • Zalando 2Q Adjusted Ebit EU211.9 Mln Vs. EU101.7 Mln Y/y
  • Plus500 First Half New Customers 198,176 Vs. 47,540 Y/y
  • Quilter Assets Under Management And Administration GBP107.4Bln
  • Codemasters Sees Earnings Significantly Ahead of Market Views
  • German Health Minister: No Return of Soccer Fans to Stadiums
  • Derwent -H1.Net income £84.4m.Divi 22p(21p ‘19)Cop founder steps down
  • Galliford Try, announces that its Building business has signed a £105m contract to build a major new build-torent residential scheme in Leeds.