Last checked at 
* Choppy session for European shares
* German industrial orders fall unexpectedly in May
* OPEC disagreements, Didi woes in focus
* Alstom hit by Bombardier integration costs
* U.S. futures little changed
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EUROPEAN BANKS STILL AN OPPORTUNITY (0958 GMT)
The banking sector has been performing well for months, and
some investors may be tempted to look to move on but Barclays
warns they might miss out on valid opportunities.
"We think consensus earnings expectations could continue to
improve and capital return could be sustainably better than
anticipated," writes Barclays' Emmanuel Cau, in a report to
clients.
Banks have had a stellar 2021, with an spectacular
turnaround once the vaccine news broke in November.
With sentiment improving, the sector is still "a little bit
cheap," Barclays says.
In terms of geography, Barclays prefers the UK, while its
most preferred banks are Lloyds (OW), Intesa
(OW) and Santander (OW). The least preferred are ING
(UW), CBK (UW) and UBS (UW).
(Joice Alves)
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EUROBULLS, HERE'S A Q2 SHOPPING LIST (0929 GMT)
The eurobulls believe that the earning season that kicks off
in a few weeks could help European equities break out from the
trading range they've been caught in since the mid-May peak.
For those who indeed expect Q2 to provide an extra boost,
UBS has drawn up a list of 20 conviction ideas with catalysts.
"We believe the market remains earnings driven and, from a
top-down perspective, still see upside risk to earnings despite
strong YTD momentum," they wrote in a note.
Stocks highlighted by the Swiss bank are cross sector from
luxury goods to utilities. Anyhow, here's the full list.
According to Refinitiv IBES, STOXX 600 earnings are expected
to have risen a record 104% in the second quarter.
(Danilo Masoni)
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EUROPEAN SHARES PAUSE FOR BREATH (0753 GMT)
After three consecutive days of gains, European shares are
edging lower as an unexpected drop in German industrial orders
offset a jump in commodity stocks.
Data showed orders for German-made goods posted their
sharpest slump in May since the first lockdown in 2020, hurt by
weaker demand from countries outside the euro zone.
The pan-European STOXX 600 index is falling 0.3%
with autos leading the losses, down 1.8%. Germany's DAX
is down 0.7%.
In terms of single stocks, Alstom is the worst
performer, falling almost 8%, after the French train maker warns
of heavy cash outflows in H1 as it integrates Bombardier's
rail business.
On a brighter note, the oil and gas sector jumped
0.9% as crude prices hit their highest levels since 2018 after
OPEC+ discussions were called off.
Here is a snapshot of the STOXX 600 daily performance:
(Joice Alves)
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CHARGE OF THE ANTIPODEAN BRIGADE (0750 GMT)
World stocks are holding at record highs, Australia and New
Zealand are striking an upbeat tone and a fresh push higher in
oil prices to their highest since 2018 sets the tone for
Tuesday.
The Kiwi dollar is the strongest performing currency after a
strikingly strong survey of business conditions prompted
investors to wager a rate hike could come as early as November.
Across the Tasman Sea, the Reserve Bank of Australia said it
would pare the pace of its bond buying from September, sending
stocks swooning and short-dated bond yields shooting higher.
That decision puts the RBA in a small but growing club of
central banks stepping back from massive pandemic-era stimulus.
Betting on an economic recovery, an index of world stocks is
holding at record highs after notching five consecutive months
of gains. Citigroup strategists expect a 39% global EPS growth
in 2021, up from 26% at the start of the year.
But there's also some caution after Chinese tech stocks
remained under the microscope after the powerful Cyberspace
Administration of China ordered an investigation into Didi
Global Holdings just days after it lists in New York. Stock
futures in Europe and the U.S. predict a cautious start.
And for those on inflation watch, a fresh rise in oil price
could bring alarm. A breakdown in talks between Saudi Arabia and
the United Arab Emirates plunged OPEC+ into crisis and sent
crude oil climbing towards $80 a barrel, its highest levels in
nearly three years.
British Prime Minister Boris Johnson late Monday set out
plans to end social and economic COVID-19 restrictions in two
weeks' time, a test of whether a rapid vaccine rollout offers
enough protection from the highly contagious Delta variant.
Meanwhile, coronavirus infections in Spain have nearly
doubled from the previous weekend, official data shows, as the
Delta variant drives a surge among unvaccinated young people.
Key developments that should provide more direction to
markets on Tuesday:
- $8.7 billion battle for Britain's Morrisons intensifies
with a third private equity group entering fray.
- Italy's Ali Group said it raised its offer to buy Welbilt,
a U.S. food service equipment maker.
- Construction PMIs: Germany, France, Italy, Eurozone.
- Germany ZEW Economic Sentiment survey, Eurozone retail
sales.
- Sweden’s PM Lofven on cusp of forming another government.
- Bond auctions: Belgium, Spain, Switzerland, United
Kingdom.
- U.S. Composite Final PMI June, ISM non-manufacturing PMI.
- ECB’s Andrea Enria speaks with Italian Senate Finance
Commission.
(Saikat Chatterjee)
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EUROPEAN SHARES SEEN LACKING DIRECTION (0540 GMT)
European shares are seen opening lacking a proper direction
with London expected to start the day lower, while Germany and
France seen higher ahead of a data heavy morning.
Germany and the EZ ZEW for July due today will give
investors details on economic sentiment across the region amid a
growing number of COVID-19 positive cases.
In the corporate front, the battle for Britain's Morrisons
hots up as Apollo entered fray.
Financial spreadbetters at IG expect London's FTSE to open 6
points lower at 7159, Frankfurt's DAX to open 8 points higher at
15,670 and Paris' CAC to open 6 points higher at 6,573.
(Joice Alves)
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