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* European shares open 0.3% lower
* Travel stocks top sectoral decliners
* STMicro and Novozymes at multi-yr highs after estimate-beating results
* ECB rate decision later today
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters
stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share
your thoughts on market moves: thyagaraju.adinarayan.thomsonreuters.com@reuters.net
OPENING SNAPSHOT: TRAVEL STOCKS BRUISED, STMICRO AND NOVOZYMES FLY (0828 GMT)
European stocks on the backfoot as expected and all broad-based moves point to risk-off mood
among investors as China virus scare hits travel stocks and a potential auto tariff dents cars.
In single stocks, Hochtief and its majority owner ACS drop sharply after
Aussie unit CIMIC Group expects to take a one-off charge of $1.23 billion from its
Middle East exit.
In earnings, Novozymes, ASOS and STMicro stocks are flying
after their estimate-beating results.
Airlines and hotels are under pressure with IHG and Air France at the
bottom of the STOXX travel & leisure index.
Banks and insurance stocks are top sectoral performers (although just barely in black) ahead
of the ECB interest rate meeting later today.
(Thyagaraju Adinarayan)
*****
ON OUR RADAR: TRAVEL STOCKS, ASOS, STMICRO (0753 GMT)
Rapid spread of a new flu-like virus in China is sending a chill down Europe with stock
futures pointing to a 0.4% decline, a day after Germany's DAX and the pan-European
STOXX 600 briefly touched record highs.
Investors are also cautious ahead of ECB's rate decision later today.
Among sectors, auto stocks are likely to continue to crumble under pressure as
Trump's latest tariff threat adds onto to worries of falling sales and shrinking margins.
Airlines, hotels and luxury sectors are on our radar as tourism will take a hit due to virus
scare in China, just as millions were preparing to travel for the Lunar New Year.
UK's IHG says will allow customers to change or cancel stays scheduled up to Feb. 3
across mainland China, Hong Kong, Macau and Taiwan at no additional cost.
It's earnings Thursday here and some decent beats could come to rescue the downbeat
sentiment in markets. European chip stocks are in focus after STMicro's fourth
quarter earnings beat. Traders see STMicro shares to open flat to 3% higher.
ASOS sales raced past estimates (+20% vs. consensus of +15%) in latest evidence
that online retailers have had a great Christmas at the cost of high street players. ASOS is
seen rising 5% to 7% -- a positive read across for Boohoo and Zalando.
Other significant moves: Germany's Hochtief seen 5% down on 800 million euro
on-time charge; Lufthansa seen +2% after report on potential listing of stake in its
jet-maintenance unit; Mothercare seen down 5%, trader says positive tones around the
rescue and refinancing, but the administration of Mothercare UK has cost a further 10 million
pounds
Headlines to digest:
Getlink's revenues hit by Brexit and strikes in France
STMicro posts Q4 net revenues beat but sees sales slowing q/q
Lufthansa weighs listing of stake in jet-maintenance unit- Bloomberg
Britain's ASOS beats sales forecasts in Christmas period
IHG to waive fees for China hotel stay cancellations amid viral outbreak
Anglo American's fourth-quarter output rises on Brazil mine strength
Mothercare Says Recapitalisation On Track, CEO To Leave
UK's Blue Prism says momentum building after revenue rises 83%
(Thyagaraju Adinarayan)
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STOCKS ON BACKFOOT ON CHINA VIRUS SCARE (0650 GMT)
European stocks are seen edging lower ahead of the ECB's rate decision and as investors
continue to worry about the spread of spread of a new flu-like virus in China. The caution in
Europe follows a steep 3% sell-off in Chinese stocks.
Auto stocks could come under further pressure as U.S. President Trump threatened to impose
high tariffs on imports of cars from the European Union if the bloc doesn't agree to a trade
deal.
Financial spreadbetters IG expect London's FTSE to open 9 points lower at 7,563, Frankfurt's
DAX to open 46 points lower at 13,470 and Paris' CAC to open 21 points lower at 5,990.
It's also a busy day for earnings with a slew of earnings reports pouring in. STMicro
, which provides chips and sensors to Apple and Tesla, reported Q4 sales slightly above
its outlook but warned of a slowdown next quarter.
(Thyagaraju Adinarayan)
*****
(Reporting by Danilo Masoni, Joice Alves, Julien Ponthus and Thyagaraju Adinarayan)
