Latest stock moves, data and earnings

Christyan Malek, global head of energy strategy and head of EMEA oil and gas equity research at JPMorgan, says “China demand is just OK, I don’t think it’s bad.”

The European Commission revised its annual growth forecast for the European Union lower in its Summer 2023 Economic forecast, to 0.8% from 1%.

It said it now sees growth in 2024 of 1.4%, down from a previous forecast of 1.7%.

The EU body trimmed its consumer price inflation expectation to 6.5% from 6.7% for 2023, but nudged its 2024 forecast higher, to 3.2% from 3.1%.

In the euro area, it expects inflation of 5.6% in 2023 and 2.9% in 2024, still well above the European Central Bank’s 2% target.

“The global economy has fared somewhat better than anticipated in the first half of the year, despite a weak performance in China. However, the outlook for global growth and trade remains broadly unchanged compared to spring, implying that the EU economy cannot count on strong support from external demand,” the report reads.

“Overall, the weaker growth momentum in the EU is expected to extend to 2024, and the impact of tight monetary policy is set to continue restraining economic activity. However, a mild rebound in growth is projected next year, as inflation keeps easing, the labour market remains robust, and real incomes gradually recover.”

— Jenni Reid

British homebuilder Vistry was 12.6% higher at 9:15 a.m. London time as it reiterated its full-year guidance and announced a £55 million ($68.8 million) share buyback despite “challenging macro-economic conditions.”

The company also announced a new strategy of focusing on affordable housing projects.

“Investors also look to be pricing in the medium term profit and return on capital targets outlined by chief executive Greg Fitzgerald alongside the first-half results,” Russ Mould, investment director at AJ Bell, told CNBC.

Fellow homebuilders Barratt, Persimmon and Taylor Wimpey were all higher in morning trade.

Basic resources stocks were 2.3% higher as metals prices broadly gained Monday, with Anglo American up by 3% and Antofagasta up 2.4%.

Mould said investors may be pricing in “better times ahead for China’s economy and thus demand for raw materials,” given recent data showing an uptick in Chinese consumer price inflation and a slowdown in the rate of decline of the producer price index.

Deflation has been a key concern for China’s growth prospects in recent months.

— Jenni Reid

Chinese stock markets have failed to perform in 2023.

Major China-focused indexes have lost money for investors over the past week, this month, the past three months, the past six months, and the past year. Only patient investors who entered the market five years ago would barely be in the black.

CNBC Pro screened for ETFs and found 10 that have gained value this year in spite of the odds, and with the potential to rise further. Subscribers can read more here.

— Ganesh Rao

Shares of Chinese tech giant Alibaba fell 3.5% on Monday, after the company said in a surprise move that outgoing CEO Daniel Zhang will step down as chairman and CEO of its cloud business.

The move comes months after Alibaba said in June that Zhang was departing as chairman and CEO of Alibaba Group to focus on the cloud intelligence unit.

Eddie Wu, who was set to take over from Zhang as CEO and director of Alibaba Group from September, will now also be chairman and CEO of the cloud business on an interim basis

Read the full story here.

European markets are expected to open in mixed territory Monday.

The U.K.’s FTSE 100 index is expected to open 11 points higher at 7,487, Germany’s DAX up 2 points at 15,736, France’s CAC 2 points lower at 7,241 and Italy’s FTSE MIB up 2 points at 28,234, according to data from IG.

Data releases include Italian industrial output for July and Russian foreign trade for the same month.

— Holly Ellyatt