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Good morning. Here’s what you need to know.
- Asian markets were mostly higher in overnight trading with the Shanghai Composite up 0.03 per cent. Europe is rallying as leaders adopted a host of measures intended to alleviate interbank funding pressures and lower borrowing costs for Italy and Spain at last week’s EU summit. U.S. stock markets opened flat.
- Germany, long considered the strong arm of Europe, saw its PMI decline to 45 in June, from 45.2 the previous month. Spanish PMI fell to 41.1 in June, and UK PMI beat expectations climbing to 48.6. Check out the worst economies in the world >
- China’s official PMI declined to 50.2 in June, down from 50.4 in May, but staying above the contracitonary reading of 50. Meanwhile, China’s HSBC manufacturing PMI fell to 48.2.
- Euro-area unemployment rose to a record 11.1 per cent in May, following austerity cuts in Spain and Italy. Don’t Miss: UBS’ guide to the most troubled countries in the eurozone >
- Irish 9-year borrowing costs have fallen to pre-bailout levels amid reports that eurozone finance ministers are reviewing Ireland’s bank bailout. Meanwhile, Irish PMI climbed to 53.1 in June, with manufacturing increasing at the fastest pace in 12 months.
- In M&A news, Dell is said to be close to buying Quest Software Inc. for $2.32 billion. Meanwhile, Bristol-Myers Squibb is buying Amylin Pharmaceuticals for $5.3 billion. Now here are the 20 best dividend stocks in America >
- ISM Manufacturing index for June and construction spending for May will be released at 10 a.m. ET. Consensus is for a drop in the ISM manufacturing index to 52, and a 0.2 per cent month-over-month increase in construction spending. Follow the release at Money Game >
- Barclays chairman Marcus Agius has resigned amid a LIBOR-fixing probe. CEO Bob Diamond is also under pressure to leave.
- Apple has agreed to pay $60 million to Proview Technology to end a dispute over the iPad trademark in China.
- Enrique Pena Nieto of the Institutional Revolutionary Party (PRI) secured a victory in Mexico’s presidential elections this weekend. The PRI is set to return to power after 12 years, with Pena Nieto securing around 38 per cent of the vote. Now here is what to expect from Pena Nieto >
- Bonus – Mila Kunis and rumoured beau Ashton Kutcher were seen enjoying a cozy lunch at LA’s Soho House.