Daily Brief - 20 May 2024

Markets rocked by Iran tragedy as gold and copper hit record highs

Stocks were mixed on Monday as gold and copper prices hit all-time highs. Europe's Stoxx 600 Index stayed steady, boosted by mining stocks, while US and Asia Pacific indices saw slight gains.

The market was tense after Iran’s President and Foreign Minister died in a helicopter crash, raising concerns about Middle East stability. Investors are also keeping an eye on Saudi Arabia’s king’s health.

The Federal Reserve’s potential rate cuts are influencing market movements, helping gold reach record prices. Key economic data and policy decisions from several countries are expected this week.

Europe's banks and pharma giants beat expectations in Q1

European banks and pharmaceutical companies outperformed expectations in the first quarter. Banks like Barclays, Commerzbank, and Deutsche Bank reported higher net interest incomes and lower loan losses, suggesting potential future earnings upgrades.

Pharma giants AstraZeneca, Novartis, GSK, and Novo Nordisk also surpassed sales forecasts and kept costs down, indicating strong performance ahead.

Although there was a general decline, the MSCI Europe Index’s earnings drop was less severe than predicted, showing resilience in key sectors. Analysts expect potential guidance upgrades as companies navigate the year’s challenges.

British Land sells Meadowhall Mall stake for £360 million

British Land has sold its stake in Meadowhall Shopping Centre in Sheffield to Norway's sovereign wealth fund for £360 million.

The deal, set to close in July, means British Land will manage the property for Norges Bank Investment Management, which now owns 100% of the mall.

This sale is part of British Land's strategy to shift focus from large shopping centres to retail parks, campuses, and London urban logistics. Meadowhall, one of the UK's largest malls, is valued at £734 million in this transaction.