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* European shares seen opening higher
* U.S. and Iran signal desire to avoid further conflict
* Eyes on UK retailers after results from Tesco, M&S
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters
stocks reporters and anchored today by Danilo Masoni. Reach him on Messenger to share your
thoughts on market moves: danilo.masoni.thomsonreuters.com@reuters.net
ON OUR RADAR AT THE OPEN: UK RETAILERS (0752 GMT)
Easing U.S.-Iran tensions are set to give a boost to European shares this morning with
futures on main regional benchmarks up around 0.5-0.9% and with investors' attention gradually
shifting to the start of the Q4 season which should mark the end of a profit recession.
In corporate news, eyes on UK retailers after following results from Marks & Spencer
and on Tesco and a warning from smaller Card Factory.
Marks & Spencer reported a slight rise in underlying sales in its Christmas quarter,
indicating its latest attempt at a turnaround is showing some tentative progress. One trader
however says gross margins were at the lower end and sees its shares opening down 2%.
Mixed calls instead for Tesco which ground out a 0.1% rise in underlying sales in its home
market during what it said was a "subdued" Christmas for consumer spending.
Greeting card retailer Card Factory warned over its annual core profits, blaming the general
election and weak consumer confidence over the Christmas period. Its shares look set for a heavy
slump with one trader expecting an opening drop of as much as 20%.
Still in earnings, chemicals maker Sika reports record annual sales of 8.1 billion
Swiss francs, but the 16.3% growth rate fell short of analyst expectations.
Sodexo said Q1 revenue grew 7.1% to 6.08 billion euros, benefiting from its
successful partnership for rugby World Cup, while Norwegian seismic surveyor TGS posted
lower-than-expected Q4 revenue even though it said Q1 2020 was "promising".
According to the latest I/B/E/S Refinitiv data, companies on the STOXX 600 are expected to
report a 2.5% rise in earnings, the best quarterly performance for the region since Q3 2018.
A strategic alliance with Bayer could give a lift to Evotec shares,
which were up nearly 3% in early Frankfurt trade.
Eyes also on Atlantia after Italy's transport minister told a newspaper that the
group must increase cuts in tollway fees proposed as part of a settlement to avoid a revocation
of its Italian operating licence.
Here's a headlines roundup:
Tesco reports 0.1% rise in UK Christmas sales
M&S says turnaround showing progress as Christmas sales edge higher
Card Factory expects subdued Christmas performance to hurt core profit
Sodexo's first-quarter revenue gets a boost from rugby World Cup
Seismic surveyor TGS Q4 revenue misses forecast
Julius Baer contests renewed claim by liquidator of Lithuanian firm
Swaak to succeed Van Dijkhuizen at ABN Amro
Vivendi files request to suspend freeze on Mediaset stake
Italian minister says Autostrade tollway offer "insufficient"
Italy, Autostrade exploring ways to resolve concession stand-off -sources
Fund services group Zedra to buy BNP Paribas Singapore Trust Corporation Ltd
Thailand's PTT says its retail unit not interested in bidding for Tesco's Asian business
Cancom CEO steps down prematurely
(Danilo Masoni)
*****
MORNING CALL: HIGHER AS MIDEAST TENSIONS EASE (0630 GMT)
European shares are set to extend yesterday's mild closing gains in relief to signs there
will be no further escalation in tensions between Washington and Teheran.
In his speech on Wednesday, Trump tempered days of angry rhetoric and suggested Iran was
"standing down" after it fired missiles at U.S. forces in Iraq, as both sides looked to defuse a
crisis over the U.S. killing of an Iranian general.
Spreadbetters at IG expect London's FTSE to open 16 points higher at 7,591, Frankfurt's DAX
to open 86 points higher at 13,406, and Paris' CAC to open 27 points higher at 6,058.
(Danilo Masoni)
*****
(Reporting by Danilo Masoni, Joice Alves, Julien Ponthus and Thyagaraju Adinarayan)
