European markets close lower as investors look ahead to U.S. inflation data; Atos falls 14% on debt plan

U.S. stocks opened higher Tuesday, as markets regained momentum ahead of the release of key U.S. inflation data.

The Dow Jones Industrial Average rose 0.2% in early deals, while the S&P 500 gained 0.4%. The tech-heavy Nasdaq Composite also added 0.6%.

Gwenaelle Avice Huet, executive vice president of Europe operations at Schneider Electric, discusses climate priorities and the push for sustainability.

Edmund Shing, chief investment officer at BNP Paribas Wealth Management, discusses the outlook for gold and silver prices.

HSBC said Tuesday it will sell its Argentine banking operations to Grupo Financiero Galicia in a deal worth $550 million. It will report a $1 billion pre-tax loss on the sale in the first quarter of 2024.

The bank said this will not have a tangible impact on its common equity tier 1 ratio — a measure of a bank’s financial strength —and will be excluded from its dividend payout calculation.

The deal is set to close within the next 12 months.

HSBC Group Chief Executive Noel Quinn said it would allow the company to focus on “higher value opportunities” internationally.

“HSBC Argentina is largely a domestically focused business, with limited connectivity to the rest of our international network. Furthermore, given its size, it also generates substantial earnings volatility for the Group when its results are translated into US dollars. Galicia is better placed to invest in and grow the business,” Quinn said in a statement.

“We remain committed to Mexico and the US, and to serving our international clients throughout our global network with our leading transaction banking capabilities.”

HSBC shares were 0.16% higher at 9:11 a.m. in London.

— Jenni Reid

Oil major Shell is considering all listing options, including possibly moving its listing from London to New York, the company’s CEO Wael Sawan said in a Bloomberg Opinion piece.

A Shell spokesperson confirmed the quotes to CNBC on Monday, adding that they do not reflect a change in the company’s position which remains focused on “delivering more value with less emissions,” reducing operating costs and providing better shareholder returns.

These and other factors should help close the “valuation gap,” the spokesperson said, adding that the company will consider exploring other options if that is not achieved beyond 2025.

Shell is one of the largest companies listed on the London Stock Exchange, which has been chasing fresh listings to revitalize London’s appeal as a financial hub. Shell shares were up 0.68% at 08:48 a.m. London time.

— Ruxandra Iordache

BP shares rose 1.3% in early trade, hitting the highest level since October after the oil major said it expects higher upstream production in the first quarter across oil and gas.

In a trading update Tuesday, the company also said it expected “strong” results in oil and gas trading, but adverse impacts from gas and low carbon energy realizations and from the devaluation of the Egyptian pound.

— Jenni Reid

European stocks were slightly lower early Tuesday, with the pan-European Stoxx 600 index down by 0.15% at 8:20 a.m. in London.

Major bourses were in the red, with Germany’s DAX down 0.4% and France’s CAC 40 lower by 0.25%. The U.K.’s FTSE 100 nudged 0.08% lower.

Distressed French IT consultancy Atos on Tuesday announced a series of requirements as it restructures its debt, including 600 million euros ($651 million) in cash to fund operations over the next two years.

This will be raised through debt and equity from existing stakeholders or third-party investors, it said.

It is targeting a BB credit profile by 2026, and its remaining debt maturities have been extended by five years.

The company is set to run cybersecurity operations at the Paris Olympics and also has contracts with the French secret service. French authorities have already said they will protect the firm’s strategic assets after a series of setbacks.

Atos shares climbed 19% Monday after leading shareholder Onepoint said Paris-based investment firm Butler Industries was joining its rescue consortium.

— Jenni Reid

The data center sector is poised for fast growth in the years ahead, according to UBS.

The investment bank predicts the data center sector will grow between 15% and 20% in 2024 and 2025, and “healthy” double-digit growth in the following years.

It names three related stocks to play the trend.

CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets are expected to open higher Thursday.

The U.K.’s FTSE 100 index is expected to open 1 point higher at 8,369, Germany’s DAX up 4 points at 18,681, France’s CAC 14 points higher at 8,101 and Italy’s FTSE MIB up 30 points at 34,559, according to data from IG.

Earnings are set to come from Julius Baer, Acciona, Nationwide Building Society, Rolls-Royce, Aviva and Wizz Air. Preliminary euro zone services and manufacturing activity data for May is due, as are consumer confidence figures for the single currency area.

— Holly Ellyatt