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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 and Stefano Rebaudo
(stefano.rebaudo@thomsonreuters.com) in Milan.
WAREHOUSES: A RARE REAL ESTATE WINNER DURING COVID-19 (0910 GMT)
Segro shares hit a 13-year high after the warehousing specialist reported strong
results on the back of rising demand for its space with e-commerce penetration accelerating
during COVID-19 times.
"It remains to be seen how long these immediate effects will last but it is clear that the
structural trends that have been contributing to occupier demand for our space over recent years
have strengthened as a result of the pandemic," the company said.
That's a marked difference to what a few other commercial real estate companies are facing
with people increasingly working from their residences and shopping off their mobile phones -- a
trend that sank mall owner Intu Properties and kept Hammerson shares close to record
lows even as markets were bouncing back.
British Land and Land Securities are officer operators who've been
affected.
The e-commerce trend was further visible in prelim report of Deutsche Post, one of the
world's biggest post and freight companies. Deutsche Post DHL said operating profit rose 19% to
912 million euros.
(Thyagaraju Adinarayan)
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OPENING SNAPSHOT: AIRLINES IN THE SPOTLIGHT (0748 GMT)
European stocks are higher in thin summer trade as some stronger than expected results are
lifting market sentiment.
The STOXX 600 index is up 0.9% with travel & leisure sector rising 2.3%, followed by basic
materials up 1.9% and oil and gas up 1.8%. Defensives such as healthcare and food & beverage
stocks are flat or in negative territory.
Airlines are in the spotlight with EasyJet shares up 8%, extending yesterday's rise after
strong results and some price target upgrades today. Shares in British Airways owner IAG
are up 8.2%. Lufthansa stocks are up 6.2%.
Ahold Delhaize shares hit all-time high after stronger than expected results.
Overall, investors are still assessing virus trajectories and watching closely negotiations for
a fresh stimulus package in the U.S.
Oil prices are up today after inventory data showed a big drop in U.S. crude stocks although
gains were capped by concerns over fuel demand with mounting global COVID-19 cases.
(Stefano Rebaudo)
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ON THE RADAR: ALLIANZ, DEUSTCHE POST, ACCOR
European stocks are poised to open slightly higher as investors get ready to digest a fresh
batch of earnings report while worries about second wave of infections remain.
BMW shares are down 1.9% in premarket trading after the carmaker recorded a bigger
than expected operating loss in Q2.
Accor shares are seen falling 3% to 5%, after the hotel group said it plans to cut
1,000 jobs as part of a 200 million euro per year cost saving plan.
German insurer Allianz's profit beat estimates by 6% and Credit Suissue says it
was primarily driven by its property & casualty business where COVID-19 related losses were
lower than expected.
Commerzbank, in the midst of a leadership crisis, said it expected to post a net
loss for the full year after net profit declined 21% in the second quarter.
Deutsche Post shares are up 2.5% in premarket trade after the company posted higher profit
than preliminary figure.
Metro Bank swung to a loss on provisions to cover loan losses.
Good news for the retail sector as Ahold Delhaize reported better-than-expected
sales and underlying operating income for the second quarter of 2020.
The Canadian investment group, Brookfield, would have to offer a premium, which could be as
much as 70% and up to 100% higher than the current stock market price, if it launches a takeover
bid for Merlin Properties, due to the new covid-19 regulation to shield companies from
speculation, Spanish news site El Confidencial reported.
(Stefano Rebaudo)
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MORNING CALL: SLIGHTLY IN THE BLACK (0533 GMT)
European stock futures are slightly in the black this morning, but no clear trend is
emerging yet as negotiations about more spending in the U.S. are still under way.
Investors’ sentiment, after being supported by massive measures by central banks and
governments, is now in check amid second waves of infections coupled with a possible lack of
fresh stimulus in the U.S, which could affect the global economy.
San Francisco Federal Reserve Bank President, Mary Daly, said the coronavirus outbreak will
be staying for "longer and more vigorously" than initially anticipated, which will lead to the
U.S. economy needing more support than initially thought.
(Stefano Rebaudo)
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