* European stocks rise slightly, FTSE underperforms
* BoE rate decision at 1100 GMT
* Next slumps 5% on weak Q3 outlook
* European steel stocks fall on US Steel warning
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: STEEL SLIPS, BANKS RISE; NEXT BRUISED (0731 GMT)
Slightly higher open for Europe as strong gains in banking stocks offset weakness in steel
makers. Mining sector is the worst performer across Europe as falling iron ore prices and a
warning from U.S. Steel on weakening demand dent shares.
As expected, European steel stocks ArcelorMittal, Salzgitter, Voestalpine
, SSAB, Outokumpu slide 1%-2%, while London miners are down 1%.
The gains in banks may be partly due to the continued rotation into underperformers
but also some relief about the Fed's cloudy outlook for future rate cuts after cutting borrowing
rates as expected overnight.
UK's FTSE 100 is lagging the broader market weighed down by a sell-off in mining
stocks and Next.
Next shares are on track for their worst day in more than a year after the British clothing
retailer said the first few weeks of the Autumn season have been disappointing.
Another bad day for airlines as Morgan Stanley restarts coverage on European airlines with a
cautious view: "underweight" on Lufthansa and Ryanair, "overweight" on British
Airways owner IAG.
(Thyagaraju Adinarayan)
*****
ON OUR RADAR: STEEL, UK RETAIL, SWISS WATCHES (0652 GMT)
Stock futures are pointing to a weak open for Europe as the Fed's commentary overnight
signalled further cuts are unlikely after two back-to-back quarter point cuts. Investors are now
looking forward to the Bank of England's statement later today to see if some easing is on the
horizon amid the ongoing Brexit saga.
FTSE 100 stock futures (-0.3%) are under pressure ahead of BoE at 1100 GMT and as
mining stocks could take a hit on falling iron ore prices.
European steel and industrial stocks ArcelorMittal, Salzgitter,
Voestalpine, SSAB, Outokumpu and ThyssenKrupp in focus
after US Steel's warning about weakening demand overnight, which sent the company's shares
down 7%. U.S. Steel said market conditions in Europe have continued to deteriorate with
significant margin compression.
No end to Brexit woes for UK corporates? Over-50s tourism and insurance firm Saga
reported a 52% drop in H1 profits and said the uncertainty around the timing of Britain's exit
from the EU is hurting consumer willingness to commit to 2020/21 holidays.
Next shares are expected to slide 1%-2% after traders say the British clothing chain
said the few weeks of the Autumn season have been disappointing due to the warmer weather.
Spectris shares are seen rising 2% after its plan to sell unit BTG.
Swiss watchmakers Swatch and Richemont are seen up 1% on strong Swiss watch
export data. German construction and machinery manufacturing company Bauer is seen
falling 10% after it warns of FY profits citing project delays, according to traders. Bauer's
warning is the latest evidence of a slowdown in Europe No.1 economy.
Other key headlines:
Clariant fined by Swiss exchange for breaking publication rules
Airbus revises up jet demand, warns of 'lose-lose' tariff war
GSK's over-the-counter nicotine oral spray gets FDA panel backing
Deutsche Bank has discussed adding assets to bad bank if sales go well-sources
UK's Next profit up 2.7% on strong online growth
Swiss raid stomach ache drug ingredient makers in competition probe
BUZZ-United States Steel falls after gloomy outlook
Brazil's Oi in talks to sell mobile unit to Telecom Italia, Telefonica -sources
Britain's Saga posts first-half profit slump
German prosecutors probe Airbus for potential misuse of client documents
Diageo sets full-year organic sales forecast, says not immune to trade changes
(Thyagaraju Adinarayan)
*****
FED'S DELIVERED, NOW FOCUS SHIFTS TO BOE (0537 GMT)
European stocks are expected to open flat to slightly lower after the Fed cut interest rates
by a quarter point and signalled further cuts are unlikely as the labour market remains strong.
With Fed out of the way, focus shifts to Bank of England which is expected to come out with
a monetary policy statement at 1100 GMT.
"Bank of England rate decision is likely to be a more mundane affair given the proximity of
the Brexit deadline at the end of October. No changes are expected to monetary policy with the
main focus expected to be on how it sees the UK economy evolving over the next few months,"
Michael Hewson at CMC Markets UK says.
Financial spreadbetters IG expect London's FTSE to open 14 points lower at 7,300,
Frankfurt's DAX to open 8 points lower at 12,382, and Paris' CAC to open flat at 5,621.
While the U.S. stock markets hardly reacted to Fed's action, the U.S. President expressed
his disappointment on Twitter:
(Thyagaraju Adinarayan)
*****
(Reporting by Danilo Masoni, Josephine Mason and Thyagaraju Adinarayan)
UK shareholder meetings calendar - next 7 days
Friday 10 May | |
Cairn Homes PLC | AGM |
Derwent London PLC | AGM |
Diversified Energy Co PLC | AGM |
Hutchmed China Ltd | AGM |
Irish Residential Properties REIT PLC | AGM |
Kenmare Resources PLC | AGM |
Rightmove PLC | AGM |
Serinus Energy PLC | AGM |
Standard Chartered PLC | AGM |
Wheaton Precious Metals Corp | AGM |
Monday 13 May | |
88 Energy Ltd | AGM |
888 Holdings PLC | AGM |
hVIVO PLC | AGM |
Kore Potash PLC | AGM |
Tuesday 14 May | |
Aptitude Software Group PLC | AGM |
Chesnara PLC | AGM |
Cirata PLC | AGM |
Computacenter PLC | AGM |
EKF Diagnostics Holdings PLC | AGM |
FDM Group PLC | AGM |
Henderson High Income Trust PLC | AGM |
Kakuzi Ltd | AGM |
Luceco PLC | AGM |
Midwich Group PLC | AGM |
Phoenix Group Holdings PLC | AGM |
TI Fluid Systems PLC | AGM |
Wednesday 15 May | |
Accrol Group Holdings PLC | GM re takeover by Navigator Paper |
Aura Renewable Acquisitions PLC | AGM |
Barratt Developments PLC | GM re takeover of Redrow PLC |
Bridgepoint Group PLC | AGM |
Burford Capital Ltd | AGM |
Conduit Holdings Ltd | AGM |
Funding Circle Holdings PLC | AGM |
Gama Aviation PLC | GM re tender offer |
GCP Asset Backed Income Fund Ltd | AGM |
Greggs PLC | AGM |
IQGeo Group PLC | AGM |
Literacy Capital PLC | AGM |
Marshalls PLC | AGM |
Mpac Group PLC | AGM |
Redrow PLC | GM re takeover by Barratt Developments PLC |
Renewables Infrastructure Group Ltd | AGM |
Savills PLC | AGM |
Seneca Growth Capital VCT PLC | AGM |
Spirax-Sarco Engineering PLC | AGM |
St James's Place PLC | AGM |
TP ICAP Group PLC | AGM |
Vesuvius PLC | AGM |
Thursday 16 May | |
Ceres Power Holdings PLC | AGM |
ConvaTec Group PLC | AGM |
Costain Group PLC | AGM |
Eurocell PLC | AGM |
Global Opportunities Trust PLC | AGM |
Gresham Technologies PLC | GM re takeover by STG Partners funds |
H&T Group PLC | AGM |
Ibstock PLC | AGM |
Just Eat Takeaway.com NV | AGM |
Lloyds Banking Group PLC | AGM |
M&C Saatchi PLC | AGM |
Michelmersh Brick Holdings PLC | AGM |
Next PLC | AGM |
Predator Oil & Gas Holdings PLC | AGM |
PYX Resources Ltd | AGM |
Restore PLC | AGM |
RTW Biotech Opportunities Ltd | AGM |
Secure Trust Bank PLC | AGM |
Seplat Energy PLC | AGM |
Triple Point Social Housing REIT PLC | AGM |
Tyman PLC | AGM |
Unite Group PLC | AGM |
Vector Capital PLC | AGM |
Vistry PLC | AGM |
WAG Payment Solutions PLC | AGM |
Comments and questions to newsroom@alliancenews.com | |
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional. | |
Copyright 2024 Alliance News Ltd. All Rights Reserved. |