Last checked at 
* European shares fall 0.2%
* Caution prevails before U.S. payrolls
* U.S. stock futures ease
June 3 - Welcome to the home for real-time coverage of
markets brought to you by Reuters reporters. You can share your
thoughts with us at markets.research@thomsonreuters.com
AMC FUNDAMENTALS, IF THAT'S STILL A THING (0943 GMT)
AMC shares have been putting on a show this week and their
year-to-date gains have soared to over 3,000%.
Here are some stats to chew over while shares keep rising
premarket:
- At close to $30 billion market cap, each theatre it owns
is now worth a whopping $20 million
- AMC's revenues dropped 77% in 2020 and analysts don't
expect revenues to go back to pre-pandemic levels at least until
2024
- The cinema chain operator reported $4.6 billion loss last
year. Notably, it posted a loss in 2019, when cinemas were open
all year
- AMC shares were last trading at $71, that's roughly 20
times analysts' median price target
- Price-to-sales ratio of AMC is 22 times
(Thyagaraju Adinarayan)
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NASDAQ: SET FOR A REBOUND? (0924 GMT)
Uncertainties around inflation and tapering is making
markets increasingly cautious and that's reflected in investor
positioning across most global equity markets, Citi says.
Nasdaq futures in particular have seen "the most extreme
weakening in sentiment" with investors remaining net short
after switching from long in the early-May sell-off.
Notional short exposure of Nasdaq futures investors is
nearing $7 billion, they say, but there may be a silver lining.
"..the lower quartile of short positions are harboring an
unrealized loss of 4%, and given the relative size could lend
further upside support from short covering should Nasdaq
rebound," Citi notes.
"Additionally, the current positioning setup (Short/Loss),
has historically been supportive for further upside," it adds.
(Danilo Masoni)
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THE NATURAL RATE TRAP (0923 GMT)
While the debate on how long the ECB will keep its
ultra-accommodative policy is alive and kicking, we could use
some insight on the subject from one of the major rating
agencies.
"We believe the ECB will maintain its highly accommodative
monetary policy for the next several years, well after
relatively stronger economies such as Germany (Aaa stable) have
exhausted their spare capacity," Moody's analysts say.
They look at the equilibrium/natural interest rate, known as
"r-star", namely the real rate expected to prevail when the
economy operates at its full sustainable level.
Suppose economic growth remains anemic in significant parts
of the bloc as expected. In that case, the natural rate will
stay close to zero and "policy rates will remain constrained
near the lower nominal bound," they say.
The ECB in September could decide for a more substantial
commitment to maintaining an accommodative stance for longer as
it is concerned about inflation falling too low, they add.
Adopting something similar to the Fed's average
inflation-targeting framework would “require the ECB to maintain
a loose monetary policy stance for a considerable period and
tolerate inflation overshoots to make up for past
undershooting.”
(Stefano Rebaudo)
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CAUTION PREVAILS (0740 GMT)
European stocks are slightly lower with investors not
expecting to get too much excitement until the U.S. job data due
tomorrow, which might give clues about Fed’s policy stance.
Analysts think that a firm U.S. employment report on Friday
should prompt Fed chief to officially start the tapering
discussion at the FOMC meeting on 16 June.
Yesterday the central bank announced it plans to end its
pandemic corporate credit facility.
The STOXX 600 index is down 0.2% with the oil and
gas stock index up 0.2% as oil prices rose on
expectations of a strong demand coupled with major producers
maintaining supply discipline. Construction and materials index
is up 0.3%.
Deutsche Bank analysts expect the trend of higher taxes and
royalties on miners to increase, supporting commodity prices.
Shares in Pennon Group are up 3.8%, among the best
STOXX 600 performers, after the company unveiled a special
dividend. B&M European stocks fall 3.8% after results.
Below today’s snapshot:
(Stefano Rebaudo)
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FINAL POINTERS FOR U.S. PAYROLLS CLUES, WATCH OIL (0638 GMT)
There's plenty of data for markets to chew over on Thursday,
with a weekly U.S. unemployment report and May private payrolls
data in focus ahead of Friday's closely-watched jobs report.
U.S. ADP payrolls - sometimes a litmus test for the broader
non-farm figures - are expected to show a gain of 650,000 jobs
when the data is released at 1215 GMT, a slowdown from a rise of
742,000 in the previous month.
In addition to that, the final composite Purchasing Managers
Index (PMI) for a slew of major economies are due out and also
likely to be scrutinised for signs of inflation.
A degree of caution ahead of Friday's U.S. jobs data appears
to be setting in with Asian stocks holding below a recent
three-month high. European and U.S. stock futures were trading
just a tad higher.
The dollar too is sticking to familiar ground against other
major currencies before Friday's data. It was a touch firmer
against the euro, with the dollar index last up 0.15%.
Rising oil prices could give investors reason to rethink the
recent calm about inflation pressures picking up.
Oil is up from a third straight session, with Brent crude
rising to almost $72 a barrel -- the highest since Sept
2019.
BlackRock Founder Larry Fink is the latest to warn that the
market was underestimating the risk of higher inflation. And the
U.S. Federal Reserve said on Wednesday it will unwind corporate
bond holdings it amassed through an emergency facility last year
-- another sign of pandemic support measures coming to an end.
On the corporate front, French spirits group Remy Cointreau
reported a higher-than-expected profit growth for its
2020/21 fiscal year.
Key developments that should provide more direction to markets
on Thursday:
- UK's Sunak says U.S. plan to break global tax deadlock
could work.
- China's Caixin/Markit services Purchasing Managers' Index
(PMI) fell to 55.1 in May, down from 56.3 in April.
- Japan auctions 10-yr JGBs, with 2.94 bid-to-cover ratio
- US earnings: Lululemon
(Dhara Ranasinghe)
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EUROPE IN POSITIVE TERRITORY AHEAD OF U.S. DATA (0528 GMT)
Futures point to a slightly higher open for European stocks
ahead of U.S. job data, with the benchmark STOXX 600
set to flirt with a fresh record high.
Concerns about whether inflation could prompt a less dovish
stance by the Federal Reserve continue to keep equities in a
trading range.
But some investors expect interest rates to remain subdued
even in the medium term to ensure the viability of surging debt
burdens across the globe.
A weekly unemployment report and May private payrolls data
on Thursday will be followed by monthly jobs numbers on Friday.
Philadelphia Fed Bank President Patrick Harker said
yesterday that it may be time for the Fed to start thinking of
slowing the pace of its asset purchases as the U.S. economy
continues to recover and the labour market rebounds.
(Stefano Rebaudo)
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