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A DELIVEROO SENSATION AT THE OPEN, ELEKTA FALLS (0741 GMT)
As expected European bourses are not making dramatic moves
at the open with the pan-European STOXX 600 up a modest
0.1% and regional benchmarks trading broadly flat.
That's not to say that early trades didn't provide any
surprises: Deliveroo fell a whopping 11% at the open
with nothing really in the newsflow to justify the move.
One possible explanation is a fat finger involving Just Eat
Takeaway.com which is set to leave the FTSE 100 after
the food delivery's nationality was reassigned from the UK to
the Netherlands by Index manager FTSE Russell.
Anyhow, while these early moves remain mysterious, Deliveroo
shares have since recouped most of their losses and are now
trading only around 2% down.
The clear loser of morning trading on the STOXX 600 is
Elekta shares, which are down 6.5% after the Swedish
radiation therapy equipment maker's operating result tumbled due
to rising expenses.
Talking about the end of the earnings season, Stadler Rail
is enjoying a boost from its result and took the lead
among gainers with a 4.5% jump.
Sector wise it's quite quiet too with Travel and Leisure at
the top gaining 1% and at the bottom utilities retreating 0.2%.
(Julien Ponthus)
*****
EUROPE'S POWERHOUSE JUST ISN'T FEELING IT (0725 GMT)
As the COVID-19 Delta variant and supply chain disruptions
persist globally, damage inflicted on business sentiment in
Europe's biggest economy could become clear in Wednesday's Ifo
German business sentiment index.
And with a Sept. 26 national election about to call time on
the Merkel era, the already closely-watched Ifo survey may take
on extra significance.
Just a month ahead of the key vote, the centre-left Social
Democrats have pulled ahead of Chancellor Angela Merkel's
conservatives for the first time in 15 years, according to an
opinion poll published on Tuesday.
Economists expect the August Ifo business sentiment index to
decline for a second straight month.
The timing of the German sentiment numbers means markets
have something to chew over before U.S. Federal Reserve chief
Powell steps up to the virtual Jackson Hole podium on Friday.
Although analysts do not expect Powell to give too much away
in terms of the Fed's taper timeline, markets are taking no
chances -- Treasury yields and the dollar are clinging to tight
trading ranges this week.
Stock markets, however have recovered ground from last
week's selloff with Asian stocks higher on Wednesday while U.S.
and European stock futures are flat to lower.
Elsewhere, U.S. officials have approved license applications
worth hundreds of millions of dollars for China's blacklisted
telecom company Huawei to buy chips for its growing auto
component business, two people familiar with the matter said.
Key developments that should provide more direction to
markets on Wednesday:
-U.S. House of Representatives approved a $3.5 trillion
budget framework and will vote by Sept. 27 on a $1 trillion
infrastructure bill
- Sydney hospitals battle coronavirus as daily infections
hit record
- BOJ policymaker warns of uncertain recovery
- Global corporate profits to fall 8% in Q3 after record Q2
- Cevian Capital pushes stake in Aviva above 5%; Klarna
reports Q2 jump in transactions value
- UK CBI survey
- U.S. durable goods data Jul
- ECB vice-president Luis de Guindos speaks
- Bank of Iceland meeting
- Earnings: Eiffage, Aroundtown, Grafton, Nederland, Mowi
(Dhara Ranasinghe)
*****
EUROPE WAKES UP WITH NO CLEAR TREND IN SIGHT (0534 GMT)
European futures are flat to slightly negative this morning
with no clear trend in sight.
Not much of a change since the close of the session
yesterday and there isn't much inspiration coming from the East
where MSCI's broadest index of Asia-Pacific shares outside Japan
is up a meagre 0.2%.
Wall Street futures are also on the back foot and trading
flat or just below the floatation mark.
Some 'wait and see' is of course to be expected before we
get more visibility on the Fed's strategy at Jackson Hole on
Friday.
At the moment, nothing dramatic is expected with most
analysts taking the view that Powell will want to wait a bit
more before announcing his next move.
"The last-minute decision to hold this week’s meeting
virtually appears to be a tacit admission by the Federal Reserve
that the surge in the delta variant is still a clear and present
danger to the US recovery", wrote Michael Hewson at CMC Markets
UK.
(Julien Ponthus)
*****
