Last checked at 
* European shares higher
* STOXX 600 off opening highs, up 0.9%
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 and Danilo Masoni
(danilo.masoni@thomsonreuters.com) and Stefano Rebaudo (stefano.rebaudo@thomsonreuters.com) in
Milan.
RISK-APPETITE MIGHT NOT LAST LONG (0951 GMT)
While risk appetite seems to be back with stocks rallying for a third straight day on hopes
for more stimulus and a vaccine, some investors remain cautious as a number of significant risks
are still in place.
"After a buoyant August for risk assets, the rally is likely to flatten out. Rising new
infections into the autumn, a levelling recovery pace and political risks (U.S. politics,
Brexit, geopolitics) will keep a lid on risk sentiment," a Generali Investment report says.
Further down the line, the asset manager says investors should beware of a possible cliff
edge effect on the economy related to the unwinding of relief measures. It warns that a "rise in
insolvencies could trigger shockwaves via increased NPLs".
For now, Generali Investment says it is ready to increase the "pro-cyclical bias in
portfolios as the Covid paralysis fades out" and that it is "slightly overweight on equities
after a good performance in August with rotation towards value and cyclicals".
In regional preference, it is neutral on Europe versus U.S..
(Stefano Rebaudo)
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OPENING SNAPSHOT: RISK-APPETITE ON STIMULUS AND VACCINE HOPES (0742 GMT)
A fresh risk-on session is underway with investors betting on the positive impact of
stimulus plans by central banks and governments.
Also vaccine hopes are propping up risk sentiment after Sanofi and its British
peer GSK said they expected the first results on their protein-based vaccine by early
December 2020.
The STOXX 600 index is up 1.2% with travel and leisure stocks leading gains, up 2%,
along with automakers, while the bank sector, which was battered in the last few days, is up
1.8%.
Shares in Melrose are up 9.3% after the company posted higher-than-expected trading
over summer months.
Siemens Healthineers is down 4.1% after the company launched a 2.9 billion euro
capital increase.
Cautious reaction by shares in Sanofi and GSK, up 0.4 and 0.6% respectively.
(Stefano Rebaudo)
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ON THE RADAR: VACCINE HOPES AND A CAPITAL INCREASE (0633 GMT)
European stocks are set to open higher on bets government and central bank stimulus will get
economy and financial markets off the coronavirus hook quickly.
Meanwhile, Pharma companies continue their race to develop treatments against the virus.
Today Sanofi and its British peer GSK said they expected the first results on
their protein-based vaccine by early December 2020, and if the data turned out to be positive,
they plan to request regulatory approval for the product in the first half of 2021.
In other company news, with shares in Siemens Healthineers down 4.2% in early
trade after the company launched a 2.9 billion euro capital increase to finance parts of the
planned takeover of U.S. peer Varian.
On the earnings front, Capgemini expects double-digit revenue growth in 2020
driven by a gradual second-half recovery, crediting diversification for its resilience during
the coronavirus crisis.
Iliad reported a 1.8% rise in half-year revenue.
Roche said new data showed its big-selling multiple sclerosis treatment Ocrevus was
a "highly effective treatment option offering a favourable and consistent benefit risk profile".
(Stefano Rebaudo)
*****
MORNING CALL: STILL BETTING ON STIMULUS (0528 GMT)
European stock futures are in the black as investors keep focusing on the huge liquidity
available and on stimulus plans, hoping for a quick recovery from a pandemic-induced recession.
China helps, with signals that its economy is on its way for a significant rebound as the
Caixin/Markit services Purchasing Managers' Index (PMI) stayed above the 50-mark in August,
while companies hired more people for the first time since January.
In the U.S. mixed macro data with a slowing recovery in the labour market triggered
expectations that the Congress may feel the pressure to reach a deal on a new relief package.
(Stefano Rebaudo)
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