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Pin to quick picksHarbour Energy Share News (HBR)

Share Price Information for Harbour Energy (HBR)

London Stock Exchange
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Share Price: 297.60
Bid: 297.30
Ask: 297.90
Change: -6.60 (-2.17%)
Spread: 0.60 (0.202%)
Open: 305.70
High: 305.70
Low: 295.60
Prev. Close: 304.20
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Is AI fully priced in or not?

Wed, 07th Jun 2023 12:35

STOXX Europe 600 little changed

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Inditex beats profit estimates

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U.S. stock futures steady

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at

IS AI FULLY PRICED IN OR NOT? (1122 GMT)

Markets might have gone too far in pricing the benefits of artificial intelligence for certain high-flying stocks, but this new technology is arguably still going to make a difference to future profits, which offers extra upside to the broader indices.

Goldman Sachs has crunched the numbers.

Based on the assumption that widespread AI adoption will boost productivity by 1.5 points per year, Goldman says EPS in 20 years would be 11% above its current estimate and the S&P 500 fair value would be 9% higher than today.

Yet, according to the U.S. bank, uncertainties over AI mean markets may take time to fully reflect its potential.

"We believe further upside exists to the S&P 500... However, the timing and ability of S&P 500 companies to generate incremental profits from AI is uncertain and therefore is unlikely to be fully priced by investors in the near term," write Goldman analysts.

"At the index level, the current equity risk premium and long-term EPS growth expectations are roughly in line with historical averages, suggesting investor optimism on AI adoption is not at extreme levels," they add.

For top AI beneficiaries though, there might be some risks there, stemming from high investor expectations.

"At the stock level, the current valuation of the largest AI beneficiaries, such as NVDA, is similar to the valuation accorded in the 2000s to some of the largest Dot Com Boom beneficiaries," they add.

EUROPEAN EPS IN UPGRADE TERRITORY (1045 GMT)

The European 3-month EPS Revision Ratio moves into net upgrade territory for the first time since Sep 2022, according to BofA.

"Europe increased the most across the regions over the month and is the only one with a ratio above 1. Once the 3-month ratio exceeds 1, it typically stays in net upgrade territory for 10 months," BofA Quant Strategist Paulina Strzelinska says.

Companies with exposure to Developed Europe and Spain had the highest ratios. Those with the largest exposure to the United States were among those with the lowest ratios, she adds.

BIG TECH: TIME TO TAKE PROFIT AFTER EUPHORIC RUN? (0905 GMT)

Big Tech has enjoyed a spectacular rally and inflows have been huge too. But talk is on the rise among traders and investors that profit-taking may be around the corner.

Citi said this week that bullish positioning on the Nasdaq has reached its largest on record and has increased such risks in the short term. They're not alone in anticipating a possible drawdown.

Anthilia fund manager Giuseppe Sersale says he would be very surprised not to see profit-taking on Nasdaq, semiconductors and FAANG stocks any time soon.

Sersale likens the current level of tech euphoria to that seen back in February 2021, when stock-picker Cathie Wood's Arkk Innovation fund reached all-time highs.

"February 2021, in addition to being the peak of the Arkk Innovation fund, which invested in a lot of 'unprofitable tech' and in fact never recovered, also saw the beginning of a correction in the Nasdaq 100, which is what I would also expect now, given the level of euphoria," he says.

The S&P 500 has outperformed its equal-weight equivalent by over 12% in the first five months of 2023. The combined market cap of Alphabet, Amazon, Apple, Meta , Microsoft, Netflix, Tesla and Nvidia is worth 30% of the S&P 500, compared to 22% at the beginning of the year, Sersale notes.

More reading here: Nasdaq bullish positioning at largest ever - Citi

RETAILERS AND MADRID SHINE ON INDITEX, STOXX DIPS (0751 GMT)

A strong update from Zara-owner Inditex in Spain not only boosted its shares by over 5% but also gave lustre to the broader retail sector and helped Madrid stand out against an otherwise muted picture for the European open.

The region-wide STOXX Europe 600 fell 0.15% and similarly weaker were other country indices. Poor export data from China and slower-than-expected growth for German industrial output didn't help. Madrid's IBEX rose as much as 0.7%.

Chip stock BE Semi, which has rallied on optimism over booming adoption of AI-related semiconductor tech, pulled back, falling 5.6%. The broader tech index dipped 0.1%.

Retailers led gainers, up 2%. Some money flowed back to banks, up 0.3% driven by Danske Bank's strong update and following gains across U.S. peers on Tuesday.

Britain's largest North Sea oil and gas producer Harbour Energy rose by 4% after a Reuters report of merger talks with Mexican peer Talos Energy.

Here's your opening snapshot:

(Danilo Masoni)

EUROPE SIGNALS MUTED START (0643 GMT)

European shares looked set for a directionless start on Wednesday, following poor China export data that highlighted weakness in global demand and as talk grew that investors could look at taking profits out of the strong rally in big U.S. tech stocks.

EuroSTOXX50 futures were up 0.05% and FTSE contracts inched 0.1% lower. DAX futures were up marginally even after data showed German industrial production rose slightly less than expected in April.

Futures on the tech-heavy Nasdaq meanwhile fell 0.1%, trading just below 14-month highs.

In corporate news, Zara brand owner Inditex was in focus after reporting a 16% jump for sales of its spring-summer collection, in a sign the fast-fashion retailer can continue its strong run. One trader called the shares up as much as 2%.

Eyes also on Danske Bank after the Danish lender raised its long-term earnings target -- euro bank futures rose 0.6% -- and Atos after the IT firm forecast sales at loss-making unit Tech Foundations to hit bottom in 2024.

Rheinmetall could find support after Germany ordered another batch of 20 infantry fighting vehicles to supply to Ukraine over the coming months.

(Danilo Masoni)

CHINA DISAPPOINTS AGAIN, FANNING SPECULATION ON STIMULUS (0559 GMT)

China's keenly awaited trade data for May did little to stir markets increasingly inured to weakening momentum in the world's second-largest economy, although it will fuel further speculation of policy stimulus measures from Beijing.

For the record, exports posted a bigger-than-expected drop of 7.5% year-on-year, sending the trade surplus to a 13-month low, while imports remained mired in negative territory.

While the data had little immediate broad impact, the Chinese yuan weakened on cue and Europe could well view the figures in a bleaker light on a day that features few domestic catalysts.

The Reserve Bank of Australia's surprise rate hike and hawkish messaging on Tuesday continue to reverberate, raising speculation that the Bank of Canada might similarly defy poll forecasts by resuming rate hikes later on Wednesday, following recent sticky inflation data.

Indeed, RBA Governor Philip Lowe was still explaining Tuesday's policy decision in a speech to bankers after the central bank wrong-footed economists who predicted there would be a rate pause for a second straight month.

Expectations of a follow-up hike in July cushioned the Aussie from the weak Chinese trade numbers and Australia's own below-forecast first-quarter gross domestic product data.

Stock markets in Asia were mixed, as were U.S. equity futures, following a slightly firmer finish on Wall Street. Light positioning could well persist into next week's lineup of major central bank meetings, as the earnings season draws to a close.

One corner of the market that is seeing volatility is bitcoin, which reversed much of Tuesday's sharp drop on a flight to quality in the crypto space following a widening U.S. crackdown on exchanges and smaller coins.

Key developments that could influence markets on Wednesday:

German April industrial output

ECB's Fabio Panetta, Edouard Fernandez-Bollo and Luis de Guindos speak at conference on financial integration in Brussels

ECB's Klaas Knot briefs Dutch parliament on financial sector stability

OECD updates global economic outlook

U.S. April trade and consumer credit

Bank of Canada policy decision

(Sonali Desai)

More News
27 Mar 2023 16:57

LONDON MARKET CLOSE: Banking sector fears ease; CMC Markets slumps

(Alliance News) - Stock prices in Europe ended higher on Monday, with shares bolstered by fears for the banking sector abating after a deal was struck for a US bank to mop-up assets of collapsed Silicon Valley Bank.

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24 Mar 2023 17:00

LONDON MARKET CLOSE: Banking fears rock equities again

(Alliance News) - Banking sector turmoil returned to hit stocks again on Friday, with Deutsche Bank bearing the brunt of a sell-off, despite words of reassurance from eurozone finance leaders.

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24 Mar 2023 08:47

Harbour Energy hails regulatory submission by Pemex for Zama oil field

(Alliance News) - Harbour Energy PLC on Friday noted that Petroleos Mexicanos, or Pemex, submitted the Unit Development Plan for the Zama field to Mexico's National Commission of Hydrocarbons for approval.

Read more
24 Mar 2023 07:46

Harbour Energy submits plans for Zama field

(Sharecast News) - Harbour Energy has submitted development plans for the Zama field to the Mexican authorities, the oil and gas producer confirmed on Friday.

Read more
10 Mar 2023 17:10

Offshore workers to strike at UK continental shelf, says Unite

March 10 (Reuters) - British union Unite on Friday said several Sparrows offshore services workers have voted to strike at dozens of platforms on the UK continental shelf including those of BP and Shell.

Read more
9 Mar 2023 11:10

Harbour Energy profit rockets, but is snapped up by UK windfall tax

(Alliance News) - Harbour Energy PLC on Thursday warned that it will shift its focus away from the UK, after voicing its discontent that the windfall tax "all but wiped out" its extraordinary annual profit.

Read more
9 Mar 2023 08:02

Harbour Energy slams UK windfall tax as profits 'all but wiped out'

(Sharecast News) - North Sea oil producer Harbour Energy said windfall taxes had "all but wiped out" its full-year profits and forced it to cut jobs and investment.

Read more
8 Feb 2023 14:20

IN BRIEF: Harbour Energy Chair Thomas sells GBP4.7 million in shares

Harbour Energy PLC - North Sea-focused oil and gas formed from merger of Premier Oil and Chrysaor Holdings - Chair Blair Thomas sells 1.5 million shares via EIG Separate Investments Cayman LP at GBP3.10 each, worth about GBP4.7 million, in London on Friday.

Read more
20 Jan 2023 09:25

LONDON BROKER RATINGS: Bank of America raises Asos, boohoo to 'buy'

(Alliance News) - The following London-listed shares received analyst recommendations Friday morning:

Read more
20 Jan 2023 07:51

LONDON BRIEFING: UK retail sales fall in December; US Fed to stay firm

(Alliance News) - Stock prices in London were set to open higher on Friday, despite a warning about higher-for-longer US interest rates and an unexpected fall in UK retail sales in December.

Read more
19 Jan 2023 10:38

Harbour Energy produces more oil in 2022; to pay higher windfall tax

(Alliance News) - Harbour Energy PLC on Thursday said it produced more oil in 2022, and it noted it will pay a higher windfall tax in the UK than previously estimated, following the UK government's announcement in November of an increase to the levy.

Read more
19 Jan 2023 08:02

Harbour Energy FY production grows, will review UK operations

(Sharecast News) - Oil and gas company Harbour Energy said on Thursday that full-year production had increased just 24 hours after confirming it is reviewing its UK operations following a hike in the windfall tax rate in 2022.

Read more
18 Jan 2023 16:20

Harbour Energy reviewing organisation in UK, cites windfall tax

(Sharecast News) - Oil and gas company Harbour Energy confirmed on Wednesday that it is reviewing its organisation in the UK following a hike in the windfall tax last year.

Read more
18 Jan 2023 15:53

Harbour Energy warns of job cuts because of hike in windfall tax

(Alliance News) - Harbour Energy PLC on Wednesday told staff it is planning to cut jobs, according to sources, as the business confirmed it was reviewing its organisation in the country.

Read more
17 Jan 2023 11:51

UK oil and gas licensing round attracts 115 bids

LONDON, Jan 17 (Reuters) - Britain's first oil and gas exploration licensing round since 2019 attracted 115 bids, up from 104 in the last round, with the licences likely to be awarded from the second quarter, the North Sea Transition Authority (NSTA) said on Tuesday.

Read more

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