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Good morning,

Markets are called to open higher this morning. This is what's moving the markets today:

  • Scor to buy Generali’s U.S. reinsurance unit for $750m;
  • Elan purchase by Royalty Pharma temporarily blocked by judge;
  • Novartis LDK378 lung cancer drug had 60% response rate in trial;
  • Cobham shareholder selling $170m stake, term sheet shows;
  • U.K. retail sales rose in May on furniture demand, BRC says;

Companies in Europe reporting results today:

  • Ahold (AH NA) 6:45am, 1Q rev. EU10.2b, adj. net EU266.8m;
  • Aryzta (ARYN SW) 7am, 3Q rev., trading update;
  • Wolseley (WOS LN) 8am, 3Q sales, IMS

Japan’s biggest stock rally in a quarter century has been fueled by earnings growth that is three times faster than the world average, not just speculation Prime Minister Shinzo Abe will end two decades of deflation. Profits for the Topix index will climb 57 percent to 74.78 yen a share in 2013, compared with the global average of 19 percent, according to more than 5,000 analyst forecasts. While gains are being aided by everything from overseas acquisitions to the weakening yen and depressed results last year, rising profits will add to economic growth.

European equity futures and Asian stocks climbed, while South Korea’s won strengthened the most in seven weeks as concerns eased the Federal Reserve will reduce its monetary stimulus. Zinc and corn slumped. Euro Stoxx 50 Index futures rose 0.7 percent as of 7:19 a.m. in London, while contracts on the Standard & Poor’s 500 Index were little changed. The MSCI Asia Pacific Index added 1 percent as Japan’s Topix gained 2.6 percent. The won advanced against all its major peers. Australia’s dollar fell 0.4 percent. Zinc, corn and wheat futures sank at least 0.8 percent.

Stock to watch: ThyssenKrupp

Deutsche Bank Research: TK´s management has delivered well on divestments so far and is currently in the process of selling the loss-making Steel Americas business. We continue to like the company´s mid-term transition story and the combination of upside from a cyclical recovery in Steel and the refocus and earnings growth of the capital goods assets (particularly Elevators which should become a large value driver). Nevertheless, this will take time to materialize and requires continuous performance improvement by the company. We believe the shares are likely to remain range-bound until markets have clarity on the Steel Americas exit and possible upcoming liquidity events. We recommend Hold.

For more information on Thyssenkrupp or other stocks and bonds we follow, contact our offices on 25688688.

Good day and happy trading!

Kristian Camenzuli