Europe First to Market Today's Morning Meeting

J.P. Morgan's morning note highlights structural headwinds for European Chemicals leading to multiple downgrades, while identifying selective buying opportunities in UK Utilities and Shell.

Key Takeaways

• 1.The European Chemicals sector faces structural challenges including industry overcapacity in China and intensifying competition, leading to several downgrades.
• 2.UK Utilities present a buying opportunity despite political uncertainty and perceived nationalization risks, which analysts view as overdone.
• 3.Shell's ARC transaction is viewed as a strategic positive for upstream liquids longevity and LNG leadership.

Table of Contents

• Today's Morning Meeting
• Sector blues set to return. Place BASF (UW) on -ve CW; d/g Evonik, Arkema and IMCD to UW; u/g Clariant to OW
• Burnham Risk or Buy'Em Opportunity?
• Shell PLC (Matthew Lofting, CFA) (SHEL LN, OW)
• Auto Trader (Lara Simpson) (AUTO LN, UW)
• Also Published Today
• In Case You Missed It... Trending in the Last Month
• Key Changes
• JPM Events
• Upcoming Earnings

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