* European stocks slide as U.S.-Iran tensions rise
* STOXX 600 down 1.2%, DAX -1.7%
* Airlines continue to slide on rising crude oil prices
* Risk-off: banks, chemicals, miners top fallers
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters
stocks reporters and anchored today by Joice Alves. Reach her on Messenger to share your
thoughts on market moves: joice.alves.thomsonreuters.com@reuters.net
BREXIT: AT LEAST ONE MORE YEAR OF PAIN? (1030 GMT)
Yes, it's going to be one more (at least) year of Brexit madness as the UK and EU negotiate
trade terms of the divorce.
Though the chances of a full-fledged trade agreement by 2020 does look slim, ING says most
trade experts reckon it would theoretically be possible to agree a basic, tariff-free agreement
covering goods trade this year.
The bank gently reminds the EU-Canada deal, which took seven years from start to finish. ING
believes if the transition period is not extended by June, then the race to get the FTA done by
2020 is uncertain.
And a failure would mean an abrupt exit from the single market and customs union for British
firms. That's another reason why ING isn't expecting a big rise in UK investment this year.
Even if the deal is struck, ING warns that a "free-trade agreement (FTA) does not
mean frictionless trade" as it would mean plenty of costs and bureaucracy.
"To qualify for zero-tariffs, UK firms selling goods to Europe will likely have to prove
that their products are sufficiently British-made. For goods that have come through a complex
supply chain, documenting the origin of a product’s value is not always easy – and often it is
simpler and cheaper to pay the tariff than it is to try and document origin," ING explains.
"Whatever happens, one thing looks fairly clear: we aren’t going to know the answer to many
of these key questions until much later in 2020."
Uncertainty over the outcome of UK-EU trade negotiations is reflected in implied volatility
gauges in sterling (chart below) which are far more elevated than for other major currencies.
(Thyagaraju Adinarayan)
*****
OPENING SNAPSHOT: BOURSES EXTEND LOSSES (0900 GMT)
European bourses opened in negative territory this morning as investors chase safe-haven
assets after tensions between the U.S. and Iran exacerbated.
The pan-European index is down 1.3%, on track for its worst day in over a month
with cyclical sectors, banking and chemical, leading the losses.
Hikma Pharmaceuticals and Covestro shares are down more than 5%.
Britain's blue-chip index is down 0.8%. Morrison shares slide 3.7% after and
BofA downgrade and German rival Aldi reported strong sales in the UK.
Here is your snapshot of European bourses almost one hour from the open.
(Joice Alves)
*****
ON OUR RADAR: ATLANTIA AND RETAILERS (0757 GMT)
Futures point to a lower open in Europe this morning as investors are betting on safer
assets such as gold amid escalating Middle East tensions.
In Italy, shares of Atlantia are under pressure after the CEO of the company's unit
Autostrade told a local paper that the unit risks going bankrupt if Italy's government revokes
its motorway licence with limited compensation.
It is a public holiday in Milan but the stock exchange will be trading regular hours.
Christmas festivities gave a boost to the British arm of Aldi , with total sales
rising 7.9% in the four weeks to Dec. 24 year-on-year, driven by strong growth in beers, wines
and spirits as well as its premium ranges.
Good news also for German retailers as sales across the country was up 2.1% m/m and +2.8%
y/y in November, Germany statistics office said today.
In terms of macro news, UK, Spain, France, Germany and Italy are releasing PMI data this
morning.
On the M&A front, Covivio Hotels signed an agreement to acquire a portfolio of eight hotels
located in Rome, Florence, Venice, as well as in Nice, Prague and Budapest for €573 million
including capex..
Other corporate headlines this morning:
S.Korean restaurant owners voice concerns over $4 bln Delivery Hero deal
Ternienergia Signs Preliminary Contract With Buttol Srl For Sale Of Biodigestion &Biomethane
Production Plant
(Joice Alves)
*****
EPIPHANY CELEBRATIONS HIT BY MIDDLE EAST TENSIONS (0650 GMT)
European bourses are seen opening lower this morning as the escalating U.S.-Iran tensions
are prompting investors to bet on safe assets.
Gold surged close to a seven-year peak today, as investors flocked to the safe-haven metal,
while palladium surpassed the level of $2,000 to hit a record high.
Helsinki and Warsaw stock exchanges will be shut today for the Epiphany holiday. In Milan
and Madrid, the public holiday won't affect trading hours.
Financial spreadbetters at IG expect London's FTSE to open 42 points lower at 7,580,
Frankfurt's DAX to open 124 points lower at 13,095, and Paris' CAC to open 59 points lower at
5,985.
(Joice Alves)
*****
(Reporting by Danilo Masoni, Joice Alves, Julien Ponthus and Thyagaraju Adinarayan)
UK dividends calendar - next 7 days
Monday 29 April | |
NatWest Group PLC | dividend payment date |
New Star Investment Trust PLC | dividend payment date |
Quartix Technologies PLC | dividend payment date |
Tuesday 30 April | |
Abrdn Private Equity Opportunities Trust | dividend payment date |
Amedeo Air Four Plus Ltd | dividend payment date |
Balanced Commercial Property Trust Ltd | dividend payment date |
BioPharma Credit PLC | dividend payment date |
CT Private Equity Trust PLC | dividend payment date |
Doric Nimrod Air Three Ltd | dividend payment date |
Doric Nimrod Air Two Ltd | dividend payment date |
European Assets Trust PLC | dividend payment date |
Kings Arms Yard VCT PLC | dividend payment date |
Lowland Investment Cos PLC | dividend payment date |
Middlefield Canadian Income PCC | dividend payment date |
Shires Income PLC | dividend payment date |
US Solar Fund PLC | dividend payment date |
Wynnstay Group PLC | dividend payment date |
Wednesday 1 May | |
Dalata Hotel Group PLC | dividend payment date |
NWF Group PLC | dividend payment date |
Thursday 2 May | |
4imprint Group PLC | ex-dividend payment date |
AB Dynamics PLC | ex-dividend payment date |
Albion Development VCT PLC | ex-dividend payment date |
Alfa Financial Software Holdings PLC | ex-dividend payment date |
Ashtead Technology Holdings PLC | ex-dividend payment date |
Atrato Onsite Energy PLC | ex-dividend payment date |
Blackstone Loan Financing Ltd | ex-dividend payment date |
British American Tobacco PLC | dividend payment date |
Carr's Group PLC | ex-dividend payment date |
CLS Holdings PLC | dividend payment date |
Coats Group PLC | ex-dividend payment date |
CQS New City High Yield Fund Ltd | ex-dividend payment date |
Dunedin Income Growth Investment Trust PLC | ex-dividend payment date |
Edinburgh Investment Trust PLC | ex-dividend payment date |
Elementis PLC | ex-dividend payment date |
FBD Holdings PLC | ex-dividend payment date |
Genuit Group PLC | ex-dividend payment date |
Glencore PLC | ex-dividend payment date |
Global Opportunities Trust PLC | ex-dividend payment date |
Henry Boot PLC | ex-dividend payment date |
Hiscox Ltd | ex-dividend payment date |
Inchcape PLC | ex-dividend payment date |
IWG PLC | ex-dividend payment date |
J Smart & Co (Contractors) PLC | ex-dividend payment date |
M&G Credit Income Investment Trust PLC | ex-dividend payment date |
Mobeus Income & Growth VCT PLC | ex-dividend payment date |
Nichols PLC | dividend payment date |
Octopus Apollo VCT PLC | dividend payment date |
Porvair PLC | ex-dividend payment date |
Relx PLC | ex-dividend payment date |
Robert Walters PLC | ex-dividend payment date |
Schroders PLC | dividend payment date |
Seneca Growth Capital VCT PLC B | ex-dividend payment date |
Senior PLC | ex-dividend payment date |
Zotefoams PLC | ex-dividend payment date |
Friday 3 May | |
Anglo American PLC | dividend payment date |
Beazley PLC | dividend payment date |
BP Marsh & Partners PLC | dividend payment date |
CT UK High Income Trust PLC | dividend payment date |
CT UK High Income Trust PLC - Class B | dividend payment date |
European Smaller Cos Trust PLC | dividend payment date |
Glanbia PLC | dividend payment date |
Hikma Pharmaceuticals PLC | dividend payment date |
i3 Energy PLC | dividend payment date |
Marble Point Loan Financing Ltd | dividend payment date |
Maven Income & Growth VCT 3 PLC | dividend payment date |
Maven Income & Growth VCT 5 PLC | dividend payment date |
North American Income Trust PLC | dividend payment date |
Pearson PLC | dividend payment date |
Segro PLC | dividend payment date |
Synectics PLC | dividend payment date |
TwentyFour Income Fund Ltd | dividend payment date |
TwentyFour Select Monthly Income Fund Ltd | dividend payment date |
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