Barclays Share News (BARC)

* Sell off in defensive stocks put pressure on STOXX
* Bank stocks continue to rally on ECB hopes, +9% in last 5 days
* Software companies slide 1%-3% tracking U.S. peers

Welcome to the home for real-time coverage of European equity markets brought to you by Reuters
stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share
your thoughts on market moves: thyagaraju.adinarayan.thomsonreuters.com@reuters.net

OPENING SNAPSHOT: IT'S ALL ABOUT BANKS (0734 GMT)
Banks are leading the pack, but a stronger sell-off in defensives is keeping the
pan-European STOXX 600 index in the red this morning -- this is exactly how the index
closed last evening. Major European bourses are down 0.3%-0.5%.
Euro-zone banks have risen 9% in the last five days in one of their strongest rallies since
April 2017 with expectations running high that ECB chief Draghi will deliver a stimulus package
later this week.
As flagged earlier, the U.S. software rout overnight is spreading to Europe with Nemetschek
down 2.5%, Aveva Group -1.8%, SAP -1.3% and Dassault
-1.6%.
Meanwhile, autos index is quietly marching on for its sixth straight day of gains amid
easing no-deal Brexit fears and as U.S.-China are likely to be back at the negotiating table on
trade.
In defensives, healthcare stocks have lost more than 3% in the last two days.




(Thyagaraju Adinarayan)
*****


WHAT WE'RE WATCHING AT THE OPEN (0655 GMT)
Stock futures are pointing to a flat to slightly negative open as investors stick to the
sidelines ahead of the ECB's monetary policy meeting on Thursday, where the central bank is
widely expected to come up with a string of easing measures. All the major stock futures are
down 0.1%.
Yesterday's euro-zone bank stocks' rally (+2.2%) showed investors had high expectations for
ECB governor Draghi to deliver a stimulus package that would help the bloc's ailing economy to
spring back to growth.
European tech stocks, especially the software names such as SAP, Temenos,
Software AG, among others in focus after yesterday's rout in software stocks in the
U.S. Meanwhile, UK's Sage is seen up 1% after the company said it's looking at options,
including a sale, for its payments unit.
More woes for the autos sector: Moody's downgraded Ford's bonds to junk rating citing
the "considerable operating, competitive, and market challenges facing the company, and the
resulting pressure on its earnings and cash generation measures."
UK housebuilders could see some action after Britain's Galliford Try said it had
restarted preliminary talks with Bovis Homes to combine their housing businesses. One
dealer reckons Galliford could rise as much as 10% while Bovis may come under pressure.
Barclays shares are seen down 1%-2% after it raised the money it set aside for the
mis-selling of payment protection insurance (PPI), hot on the heels of similar moves by Lloyds
and RBS in recent days.
In Spain, banks are bracing for a preliminary ruling from the European Court of Justice on
Tuesday on whether they charged some customers too much for mortgages, a decision which could
eventually lead to them paying out billions of euros in compensation.
Keep tabs on Caixabank, Bankia, Santander and BBVA.

Richemont shares, which have had a decent run recently, could come under pressure
after the luxury goods maker's head of fashion & accessories stepped down for personal reasons.
In earnings, JD Sports is seen up 3% after in-line results; Ashtead down 1%
on in-line results as traders see this as opportunity for profit taking; Switzerland's Partners
Group seen falling 2% on first-half revenue miss.

Key headlines:
Lloyds and Barclays hit by $4 bln insurance mis-selling claims
UK's Sage Group considers sale of its payment processing unit
SAP chief says German headquarters an advantage amid U.S.-China trade war [nL2N26101G
Deutsche's overhaul is hitting investment bank revenue less than expected - CFO
Bovis Homes, Galliford restart talks to combine housing units
Santander to increase its Mexican business ownership to 91.6%
ProSiebenSat. 1 is doubling down on its free-to-air model - FT
Spanish banks on edge for European ruling on mortgage pricing
JD Sports defies weak UK high street with profit rise

(Thyagaraju Adinarayan)
*****

EUROPEAN STOCKS SEEN OPENING SLIGHTLY LOWER (0531 GMT)
European stocks are seen opening slightly lower as weak China data and tech stocks sell off
in the U.S. brought back fears of a global economic slowdown offsetting optimism from rising
expectations of a stimulus package from the ECB later this week.
Asian stocks were on the backfoot after data showed China mainland factory prices were
shrinking at their fastest pace in three years as flagging demand at home and abroad is forcing
some businesses to slash prices.
Financial spreadbetters IG expect London's FTSE to open 9 points lower at 7,227, Frankfurt's
DAX to open 14 points lower at 12,212, and Paris' CAC to open 3 points lower at 5,586.
Meanwhile, German bund yields hit a one-month high on Tuesday following a report by Reuters
that Germany is considering a "shadow budget" to allow the government to circumvent its strict
national debt rules.

(Thyagaraju Adinarayan)
*****


(Reporting by Danilo Masoni, Josephine Mason and Thyagaraju Adinarayan)