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Welcome to the home for real-time coverage of European equity markets brought to you by Reuters
stocks reporters. You can share your thoughts with Joice Alves (joice.alves@thomsonreuters.com)
and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London and Stefano Rebaudo
(stefano.rebaudo@thomsonreuters.com) in Milan.
OPENING SNAPSHOT: CAUTIOUS MOOD AS ZALANDO LIFTS RETAIL (0730 GMT)
As expected, European shares began trading in quite a cautious mood this morning with the
STOXX 600 down 0.3%.
One notable move was German online retailer Zalando lifting the retail index as its shares
jumped over 5% with better than expected trading update.
Still in Germany, another big expected move was Wirecard, hit by allegations of
accounting irregularities, which is retreating over 5% ahead of the publication of its financial
statement.
Oil and gas is the worst performing sector, not surprising given the fall of oil prices
following fears the spike in new coronavirus cases in China and the United States could dampen a
recovery in fuel demand.
The worst performing stock at the moment is Siemens Gamesa, down over 8% after the
company announced the replacement of its CEO by the head of its offshore activities without
giving an immediate reason for the change.
Another hard-hit stock is British builder Taylor Wimpey, losing over 5% after its share
issue.
Here are the top movers on the STOXX 600:
(Julien Ponthus)
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ON THE RADAR: BOE AMMO AMID ECM/DCM ACTION (0640 GMT)
Eyes on the Bank of England which is widely expected to announce more QE ammo to fight the
COVID-19 impact on the economy.
This comes as British companies are widely using equity and debt capital markets to gear up
their finances. A good example of that is oil major BP raising $12 billion of debt with
equity-like features according to the Financial Times (FT).
On the equity front, builder Taylor Wimpey said it intends to launch a share sale to raise
about 500 million pounds ($626 million) as it looks to take advantage of a fall in land prices
due to the COVID-19 crisis and resume dividend payments in 2021.
Another rights issue of £175 million from Warehouse Reit.
There's already some pre-market action in Germany with Wirecard down 9.1% ahead of the
publication of its financial results. Shares in German online fashion retailer Zalando are up 6%
as it expects better Q2 sales and operating profit. Also Lufthansa is down 3.3% after it warned
it might need to apply for protection from creditors if its bailout plan failed to win
shareholder approval.
Freshly listed lottery operator Francaise des Jeux FDJ unveiled a hit of about 200 million
euros on revenues and 100 million euros on its core earnings from the lockdown.
Some reassuring words from the Swiss National Bank for UBS and Credit Suisse seen favourably
placed to manage the challenges of the COVID-19 pandemic.
Some M&A with British supermarket group Tesco selling its Polish business $206.52 million,
leaving it focused on the Czech Republic, Hungary and Slovakia in the central European region.
According to Il Corriere della Sera the government wants the Benetton family to cut its
stake in Atlantia to 49% while the state, through infrastructure fund F2i and state
lender CDP, would take 51%.
Not price sensitive but yet remarkable, Lloyd's of London apologised for its 'shameful' role
in Atlantic slave trade.
(Julien Ponthus and Stefano Rebaudo)
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MORNING CALL: SECOND WAVE FEARS PROMPT CAUTION (0530 GMT)
A second wave of COVID-19 infections knocking out the recovery is every investor's nightmare
so it's no wonder that European shares are expected to open on the back foot this morning.
A surge in new coronavirus cases in a number of U.S. states and the resurgence of the
disease in China might indeed force a rethink of the V-shaped recovery priced in equity markets.
The retreat for European and U.S. futures is rather limited at the moment but getting close
to 1 percent in the red.
(Julien Ponthus)
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