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Welcome to the home for real-time coverage of European equity markets brought to you by Reuters
stocks reporters. You can share your thoughts with Joice Alves (joice.alves@thomsonreuters.com)
and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London, Stefano Rebaudo
(stefano.rebaudo@thomsonreuters.com) and Danilo Masoni (danilo.masoni@thomsonreuters.com) in
Milan.
OPENING SNAPSHOT: STRONG Q3 RESULTS CHEER UP EUROPE (0728 GMT)
European shares opened well in positive territory with most stock exchanges trading higher
after Q3 results across Europe showed signals of recovery with some companies showing off
better-than-expected numbers.
The pan-European index is up 0.7%, with the banking sector leading the
gains after Barclays reported much better than expected Q3 earnings.
The bank shares are up 4% after it said its consumer businesses swung back to profit and
provisions against bad loans fell compared with the previous quarter.
Staying in Britain, London blue chips are outperforming the market, up 0.9% after
retail sales beat expectations last month and rose for a fifth month in a row, capping a record
quarter of growth that took total sales volumes to 5.5% above their level before the pandemic.
In the meantime, Britain and Japan formally signed a trade agreement, marking Britain's
first big post-Brexit deal on trade.
(Joice Alves)
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ON THE RADAR: EUROPE'S BIG BATCH OF BEATS (0630 GMT)
Futures are slightly down or flat across Europe but a batch of better-than-expected third
quarter results could cheer up investors.
Barclays reported much better than expected Q3 earnings, as its consumer businesses
swung back to profit and provisions against bad loans fell compared with the previous quarter.
Nordea Bank also reported a better-than-expected rise in Q3 operating profit, as
the Nordic region's biggest lender said its income growth was driven by increased levels of
customer activity.
L'Oreal said on Thursday its sales had rebounded in Q3 after falling sharply
during the lockdown, with comparable revenue turning positive again.
Shares in Daimler are up 1.2% in premarket after the German automaker raised its
2020 profit outlook as strong demand in China in Q3 helped turn around margins at its
Mercedes-Benz cars division.
Another company getting a boost from China is Swiss elevator and escalator manufacturer
Schindler, which raised its FY revenue and net profit guidance, citing increased
activities in key markets, including China.
Norwegian aluminium maker Norsk Hydro posted a surprise rise in Q3 operating
profits and said its markets were recovering from the fall in demand seen in the previous
quarter.
Intrum, Europe's biggest debt collector, said business activities was developing
much better than predicted in the spring, as it reported a quarterly profit that matched a
preliminary reading.
French tyre maker Michelin has increased its FY targets after demand picked up
more than expected, it said on Thursday.
Shares in engineering company ABB's are up 3.3% in premarket after the company
reported net profit in Q3 rose more than eight-fold to $4.53 billion, as it booked the proceeds
of selling its power grid business to Hitachi 6501.T.
French luxury group Kering beat market expectations as its comparable sales were
nearly unchanged in the third quarter year-on-year thanks to a strong rebound in Asia and the
U.S., though its star Gucci brand underperformed rivals.
And there are also companies that have "only" met expectations including Signify,
the world's largest lighting maker, reported higher Q3 core earnings, which were in line with
expectations and said it had improved margins.
In the meantime, Swedish mining gear maker Epiroc on Thursday reported a fall in its Q3
revenue and profit as the coronavirus pandemic weighed on demand, but said its board has
proposed a second dividend.
Unsurprisingly, Holiday Inn-owner InterContinental Hotels posted a plunge in Q3
hotel room revenue (RevPAR), as the COVID-19 pandemic continued to ravage the travel and
hospitality industry.
(Joice Alves)
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MORNING CALL: AGREEMENTS AND DISAGREEMENTS (0530 GMT)
In a data heavy morning with October flash PMI data for the UK and the EZ due, futures are
pointing to a start of the day in the black for European bourses after Britain signed its first
trade agreement and reports on progress in negotiations for a U.S. coronavirus stimulus package.
The news of the day is clearly last evening's final presidential debate between U.S.
President Donald Trump and his Democrat challenger Joe Biden. After a less chaotic debate,
global stocks barely budged as the two candidates offered sharply contrasting views on the
pandemic.
But U.S. House Speaker Nancy Pelosi said yesterday that negotiations between lawmakers for
another round of COVID-19 stimulus were progressing.
Meantime, Britain and Japan formally signed a trade agreement overnight, marking the UK's
first big post-Brexit deal on trade.
The UK retail data is also scheduled to be out at 0600 GMT.
(Joice Alves)
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