A slow-ish open for European stock markets but all the major bourses are just about trading higher this morning. The FTSE 100 trailed, trading 0.1 per cent higher, whilst the DAX rose 0.3 per cent to north of 15,500. The DAX has hit record highs, whilst the FTSE 100 is at its highest in over a year. US futures are a little lower this morning after the S&P 500 and Dow Jones closed at record highs on Friday, with both advancing more than 1 per cent last week. UBS raised its forecast for the S&P 500 to hit 4,400 by the end of the year, or around 5 per cent above the current all-time high.
Shares in Juventus rose 7 per cent after it was one of the ‘dirty dozen’ football clubs to announce plans for a breakaway European Super League. The financial incentive for the clubs is plain to see, with a multi-billion dollar package at the heart of the scheme, albeit it would forever break the integrity of the club game. The sort of additional revenues the ESL will deliver would need to be offset by a potential material decline or total loss of existing earnings from media deals through national leagues and UEFA. Watch for Manchester United shares to open in the US later – currently being called to open 4 per cent higher in pre-market trade. Shares in Borussia Dortmund and Ajax are higher, although they are not currently among the 12 founding clubs.
Looking ahead to this week, it’s going to be a busy period for corporate earnings as ten Dow components and more than 70 S&P 500 names report in the coming days. Coca-Cola (KO) reports today and is expected to show a 2 per cent decline in earnings per shares to $0.50 year on year, whilst revenues are seen flat at $8.6bn. KO shares are still well short of the pre-pandemic levels around $60, but this probably reflects the company’s reliance on demand stemming from big events, full stadia, festivals and concerts. Without the return to pre-pandemic levels for sporting and entertainment event attendance, Coca-Cola may struggle to get much higher. IBM and United Airlines are also reporting today.