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LIVE MARKETS-Opening snapshot: European stocks bounce

Mon, 9th Apr 2018 08:20


* European stocks open higher

* Optimism over trade row buoys risk assets

* Deutsche Bank rises after co names new CEO

LONDON, April 9 (Reuters) - Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. Reach him on Messenger to share your thoughts on market moves: julien.ponthus.thomsonreuters.com@reuters.net

OPENING SNAPSHOT: EUROPEAN STOCKS BOUNCE (0718 GMT)

It's a firmer start for European shares this morning, with banks the standout performers thanks to a rise in Deutsche Bank's shares after the lender appointed a new CEO.

Elsewhere M&A is in a focus with shares in EDP the biggest gainers, up nearly 6 percent, after BFM Business reported that Engie was examining a bid for the Portuguese utility.

Europe's STOXX 600 is up 0.3 percent, while Germany's DAX is up 0.6 percent in early trading.

(Kit Rees)

*****

BRACE YOURSELVES FOR MORE TRADE WAR MOOD SWINGS (0646 GMT)

Financial markets seem to have embarked on a sentiment rollercoaster over the possibility that the U.S. and China actually embark on a trade war which could hurt the world economy.

Analysts are pointing out two concerns with this ride: one doesn't know how it ends and how long it will last.

"The chatter over the weekend appeared to suggest some optimism that some form of deal would likely be the probable outcome, though how long that could take to pan out remains a significant unknown, and as such further volatility seems likely", said CMC Markets' Michael Hewson.

Rabobank also compared the standoff between the two countries as a soap opera which is promising to keep viewers entertained.

Analysts have warned the drama would be a long-running one given that the lengthy public discussion period on U.S. tariff proposals means the earliest they might be imposed is somewhere around late July or early August.

"This is not going to happen tomorrow, and given the mercurial nature of the U.S. administration, the whole issue could well disappear before anything really happens," said Marshall Gittler, chief strategist at ACLS Global.

"Many market participants may be starting to think that this is just a lot of sound and fury, signifying nothing in the end. But ... you never know, U.S. trade policy is in the hands of someone totally unpredictable."

(Julien Ponthus)

*****

WHAT'S ON THE RADAR AHEAD OF THE EUROPEAN OPEN (0638 GMT)

European bourses are expected to rise at the open with optimism regarding the possibility of averting a full blown trade war between the U.S. and China spreading across markets.

European futures are going in the same direction as their U.S. peers and the fact that U.S. shares are still above their 200 day MA is also seen as supporting the markets. There is also hope that the American earnings season which will kick off later this week will also support the bulls with solid fundamentals.

In the meantime there is no shortage of corporate news in Europe to fuel possible market moves, notably a new CEO for Deutsche Bank and a new twist in Vivendi’s Italian campaign with proxy advisers backing Elliott.

M&A is still very active with Novartis’ plans to buy AveXis in a $8.7 billion cash deal, Rolls-Royce selling its German-based diesel parts maker L'Orange for 700 million euros and Tata Steel considering taking a majority stake in its planned European steel joint venture with Thyssenkrupp.

In a possible blow to the high street, Adidas said it expects to close down stores in the coming years as part of a shift towards selling more goods online.

Here's a round-up of the top European company headlines:

Novartis pays big premium to get hands on AveXis in $8.7 bln deal

Deutsche Bank's new CEO sees "tough decisions" ahead [nL8N1RM0HO

FOCUS-Tata Steel open to taking majority stake in Thyssenkrupp tie-up -sources

Adidas to close stores in online push - CEO in Financial Times

Proxy adviser Glass Lewis tells Telecom Italia investors to back Elliott's proposals

Rolls-Royce sells parts maker L'Orange to Woodward for 700 mln euros

German exports post biggest drop since 2015

(Julien Ponthus and Kit Rees)

*****

TRADE WAR OPTIMISM SPREADS TO EUROPE, FUTURES SUGGEST (0610 GMT)

European futures are broadly trading in positive territory, suggesting that the current optimistic mood regarding the trade standoff between the U.S. and China is indeed spreading from Asia to Europe.

Futures for the Euro Stoxx 50 were up 0.4 percent, while DAX futures rose 0.8 percent. Futures for France's CAC gained 0.2 percent, and FTSE futures advanced 0.5 percent. (Julien Ponthus)

*****

EUROPEAN SHARES SEEN RISING AS TRADE WAR OPTIMISM PICKS UP (0520 GMT)

European bourses are expected to rise at the open with optimism regarding the possibility of averting a full blown trade war between the U.S. and China spreading across markets.

Asian shares rose and U.S. futures are in positive territory as U.S. President Donald Trump predicted on Sunday that China would eventually take down trade barriers, signalling, some analysts believe, that a solution could be found to defuse tensions between the world's two largest economies. Financial spreadbetters expect London's FTSE to open 25 points higher, Frankfurt's DAX up 39 points and Paris' CAC up 6 points.

(Julien Ponthus)

*****



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