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Pin to quick picksHarbour Energy Share News (HBR)

Share Price Information for Harbour Energy (HBR)

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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
21 Dec 2023 18:23

Britain's Harbour Energy strikes $11.2 billion deal for Wintershall Dea assets

BASF to become major shareholder in Harbour

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Read more
21 Dec 2023 17:26

European shares ease after two days of gains

Commerzbank gets ECB nod for share buyback

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Read more
21 Dec 2023 17:13

London stocks slip after global rally pauses

FTSE 100, FTSE 250 down 0.3%

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Read more
21 Dec 2023 16:53

LONDON MARKET CLOSE: Investors feel frosty ahead of US inflation

(Alliance News) - The festive cheer failed to lift stock prices in London on Thursday, as investors nervously look ahead to a key inflation reading from the US on Friday.

Read more
21 Dec 2023 16:03

London close: Stocks finish weaker amid uninspiring data

(Sharecast News) - London's stock markets ended the day in negative territory on Thursday, despite a rebound on Wall Street in early trading, as investors digested lacklustre government borrowing and retail sales data.

Read more
21 Dec 2023 15:55

Harbour Energy up after inking deal for majority of Wintershall assets

(Alliance News) - Harbour Energy PLC on Thursday said it had reached an agreement with BASF SE and LetterOne to acquire "substantially all" of the Wintershall Dea's upstream assets.

Read more
21 Dec 2023 14:14

BASF to transfer Wintershall Dea's E&P business to Habour Energy

BERLIN, Dec 21 (Reuters) - German company BASF said on Thursday that it has signed an agreement to transfer Wintershall Dea's E&P business, excluding Russia-related activities to Harbour Energy.

Read more
21 Dec 2023 14:13

Harbour Energy to buy Wintershall Dea's upstream assets for $11.2bn

(Sharecast News) - Harbour Energy surged on Thursday after saying it has agreed to buy the upstream assets of German oil and gas producer Wintershall Dea from shareholders BASF and LetterOne for $11.2bn.

Read more
21 Dec 2023 14:13

Harbour Energy to buy Wintershall Dea's upstream assets for $11.2bn

(Sharecast News) - Harbour Energy shot higher on Thursday after saying it has agreed to buy the upstream assets of German oil and gas producer Wintershall Dea from shareholders BASF and LetterOne for $11.2bn.

Read more
19 Dec 2023 09:34

IN BRIEF: Harbour Energy "pleased" by Indonesia gas discovery

Harbour Energy PLC - London-based oil and gas company with operations in the UK North Sea, Norway, Mexico, Indonesia and Vietnam - Notes announcement by operator Mubadala Energy, an Abu Dhabi-based oil and gas company, that the Layaran-1 well in Indonesia recently made a significant gas discovery on the South Andaman licence in offshore North Sumatra. Harbour Energy holds a 20.0% stake in the South Andaman licence. Says Layaran-1 is the first of a four well exploration campaign. Adds that rig will now move to drill the Halwa and Gayo wells on the Andaman II licence.

Read more
4 Dec 2023 10:10

LONDON BROKER RATINGS: HSBC likes Softcat; Jefferies cuts Future

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

Read more
30 Nov 2023 15:16

London close: Stocks mixed after US, Europe inflation data

(Sharecast News) - London's markets finished with a mixed performance on Thursday, with the top-flight index lifted by the likes of BP and Shell.

Read more
29 Nov 2023 10:18

Harbour Energy announces output decline, focuses on maximising value

(Alliance News) - Harbour Energy PLC on Wednesday reported a decline in production.

Read more
29 Nov 2023 08:26

LONDON MARKET OPEN: FTSE 100 falls; Halfords, Xaar plunge

(Alliance News) - Stock prices in London opened mixed on Wednesday, as large caps fell on account of a stronger pound, though the domestically-focused midcap index rose.

Read more
29 Nov 2023 07:33

Harbour Energy eyeing M&A opportunities, reiterates full-year guidance

(Sharecast News) - Oil and gas group Harbour Energy has held on to its full-year production and cost guidance as it expressed its interest in "a number of material M&A opportunities".

Read more

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