Welcome to the home for real-time coverage of European equity markets brought to you by Reuters
stocks reporters and anchored today by Julien Ponthus. Reach him on Messenger to share your
thoughts on market moves: julien.ponthus.thomsonreuters.com@reuters.net
OPENING SNAPSHOT: ONE POINT FROM RECORD HIGHS (0859 GMT)
By most standards, it can be safely argued that the threat of a Iran/U.S. war and the
massive fires in Australia constitute a poor start to 2020.
That being said, the STOXX 600, up 0.7% at 419.70 points, is about just one tick
from another record high with investors refusing to put their money on a worst-case scenario.
Signs that the mood is not on defensives, tech is leading the gainers, followed by retail.
Talking about the latter, Britain is leading the show with Marks & Spencer up 4.8%
(rating upgrade) and Morrison gaining 3.1% on a not so disappointing trading update.
Another symptom of the bullishness out there are banking shares, which are slightly
outperforming, up 0.7%. UBS is up 2.3% after reports it is restructuring its wealth management
unit.
Other big movers include Aston Martin, down about 15% after its profit warning,
Premier Oil up 14% after buying stakes in North Sea oilfields and a gas project.
Norwegian Air is also having a good ride, up 5.5% as it continues to cut routes in
a bid to boost profitability. Easyjet (+1.7%) and Ryanair are also on the rise
(+1.8%).
(Julien Ponthus)
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ON THE RADAR: BANKING STOCKS AND ASTON MARTIN (0756 GMT)
Banking stocks will be closely watched at the open with UBS announcing a restructuring of
its wealth management unit. Pre-market indications give the Swiss group making solid gains.
With SocGen's CEO telling the FT that his bank wants to take part in the incoming
consolidation, investors might be tempted to believe that after a catastrophic decade, time has
come to reconsider a very unloved sectors if M&A and cost cutting can offset low interest rates
and tough regulations.
Among individual movers, Luxury British carmaker Aston Martin is seen falling up to 25% at
the open after issuing a profit warning.
In terms of M&A-related moves, Premier Oil said it is set to buy stakes in North Sea
oilfields Andrew and Shearwater from BP for $625 million and increase its stake in the Tolmount
gas project buying a bigger stake from Dana for $191 million.
Despite reporting lower sales, shares in Britain’s Morrisons could tick upward as they prove
less disappointing than feared.
Also Norwegian Air could benefit from its bid to regain profitability by removing
loss-making routes.
(Julien Ponthus)
*****
IT'S STILL GOOD (SO FAR) (0710 GMT)
Just a quick update to let you know that European futures are now all trading comfortably in
the black, suggesting a positive open that would mirror Asia and Wall Street's optimism that the
conflict between Iran and the United States will not get out of control.
(Julien Ponthus)
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MORNING CALL: IT'S ALL GOOD (FOR NOW) (0622 GMT)
There's been quite a change of mood across markets, with investors now taking the view that
WW III isn't about to happen right now after all.
Wall Street made it back to the black, Asian shares rebounded and oil prices fell as chances
of an all-out conflict between the United States and Iran seemed to decrease.
While this new-found optimism could vanish as quickly as it emerged, it is expected to boost
European bourses at the open.
Financial spreadbetters at IG expect London's FTSE to gain 33 points, Frankfurt's DAX 66
points and Paris' CAC 40 31 points.
(Julien Ponthus)
*****
(Reporting by Danilo Masoni, Joice Alves, Julien Ponthus and Thyagaraju Adinarayan)
