Last checked at 
* Europe's Stoxx up 0.8%
* Banks and insurers up 1.3%
* Travel and leisure up 1.4% after recent selloff
Sept 1 - Welcome to the home for real-time coverage of
markets brought to you by Reuters reporters. You can share your
thoughts with us at markets.research@thomsonreuters.com
INTEREST RATES SENSITIVE STOCKS ON THE RISE (0806 GMT)
European equities are higher shrugging off worries of a
possible correction after seven months of gains in a row.
Rising U.S. and European bond yields are propping up rates
sensitive stocks like banks and insurers both up
1.3%.
Retailers stocks are among the best performers, up
1.5%, despite disappointing results from WH Smith; while travel
and leisure shares, up 1.4%, are recovering after a recent
selloff on worries about further travel restrictions.
In the last few days, there was a lot of noise amid hawkish
remarks by ECB officials, economic data and the spread of the
Delta variant, Jeffery Halley, senior analyst at Oanda, says.
But “the unlimited zero per cent central bank money
continues to pump up asset prices. In other words, business as
usual,” he adds.
After forecasting profit for the year at the lower end of
market expectations, shares in British retailer WH Smith
are down 7% among the worst performers on the Stoxx
600. Biomerieux stocks are up 5.8% after results.
(Stefano Rebaudo)
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DON'T STOP ME NOW (0700 GMT)
After seven straight months of gains for stocks, some
investors are beginning to wonder when the good times will end.
Data from Asia on Wednesday is the latest reminder that they
may not last.
Factory activity lost momentum in August as a coronavirus
resurgence hit supply chains across the region. China's factory
activity slipped into contraction for the first time in nearly
1-1/2 years, while chip shortages and factory shutdowns slowed
manufacturing in Japan, South Korea and Taiwan.
So far, markets don't seem overly concerned.
Propelled by bets of continued central bank support, the S&P
500, Europe's STOXX 600 and MSCI's global equity index
closed August with their seventh straight month
of gains.
With the Federal Reserve last week appearing in no rush to
pull back stimulus, traders are honing in on Friday's U.S. jobs
figures for their next clues on taper timing.
So where will it all end?
An ominous sign is that the last time world stocks notched
up their best run of monthly gains -- a 15-month streak that
ended in January 2018 -- markets then tumbled to their worst
year since the global financial crisis.
Back then it was precipated, at least in part, by worries of
tightening monetary policy.
Sound familiar?
Developments that should provide more direction to markets on
Wednesday:
- Biden says Afghanistan exit marks the end of U.S
nation-building..
- BOJ's deputy governor warns against premature monetary
tightening..
- S.Korea's parliament passes bill to curb Google, Apple
commission dominance.
- Central bank of Chile raised rates by 75 bps
- Australia Q2 GDP stronger than expected at +0.7% q/q.
- ECB Board member Edouard Fernandez-Bollo speaks at 1155 GMT.
- Federal Reserve Bank of Atlanta President Raphael Bostic
speaks at 1600 GMT.
(Tom Arnold)
*****
EUROPE UP, POSITIVE VIBES FROM CHINA (0619 GMT)
European stock futures are in positive territory after
yesterday's fall, although most analysts see room for taking
some profit off the table.
Positive vibes come from China's stocks, which closed higher
as weak economic data raised hopes of more stimulus from the
government, which might introduce counter-cyclical measures.
Markets are also focusing on next week's ECB policy meeting.
But while some hawkish comments sent jitters through trading
floors yesterday, analysts see these remarks as unlikely to
represent the view of the majority of the ECB's Governing
Council.
(Stefano Rebaudo)
*****
