Welcome to the home for real-time coverage of European equity markets brought to you by Reuters
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thoughts on market moves: josephine.mason.thomsonreuters.com@reuters.net
FUTURES UNDER PRESSURE (0658 GMT)
European stock futures are under pressure, as investors shun riskier assets after drone
attacks knocked out half of Saudi Arabia's oil output, renewing geopolitical tensions in the
region, while disappointing data from China has underscored worries about the slowdown in the
world's No. 2 economy.
The losses suggest the region will end its four-day winning streak at the open. The
Eurostoxx futures are down 0.7%, with DAX futures down 0.9%, while gains in
FTSE futures after the surge in crude prices helped lift its heavyweight oil sector have quickly
run out of steam and futures are down 0.4%.
Airlines from Lufthansa] to British Airways owner IAG are expected to
fall up to 5% after the big surge in oil prices. Airbus is seen falling 2% after a
report in Politico citing EU officials said that the United States has won the right to hit the
EU with billions of euros in punitive tariffs by winning a dispute over subsidies to the
aerospace giant.
In earnings news, H&M, the world's second-biggest fashion retailer, has delivered a
bigger-than-expected rise in third-quarter net sales and said summer collections had been
well-received.
One dealer says its shares, which hit their highest since December 2017, may fall as
investors book profits after the results, while another sees the stock getting a lift although
he notes that the beat was exclusively driven by FX tailwinds.
German lighting group Osram has advised its shareholders to accept the takeover
bid from AMS and sell their shares to the Austrian sensor specialist, saying
the offer was economically attractive.
Other headlines:
H&M's sales grow 8% in Q3 in local currencies
Lundbeck to buy migraine treatment developer Alder BioPharmaceuticals
Osram advises investors to sell their stock to AMS
Fresenius drops possible sale of blood transfusion unit - spokesman
Axel Springer plans layoffs after KKR becomes biggest shareholder - report
Wirecard says broadens strategic alliance with UnionPay
Advent takeover deal for Cobham backed by most shareholders -FT
FirstGroup pursuing potential options for separation of UK bus arm
Infrastructure fund consortium bids for stake in UK's nuclear power stations
After LSE's sharp rebuff, HKEX begins investor charm offensive
U.S and European regulators reviewing safety of heartburn drugs like Zantac
Siemens, Orascom sign deal to rebuild Iraq power plant
(Josephine Mason)
*****
EUROPE ON THE BACKFOOT (0533 GMT)
European stocks are expected to start the week on the backfoot as investors seek safety in
assets considered safe in times of geopolitical and economic strife after a drone attack on
Saudi Arabian oil facilities knocked out half the country's oil output and weaker-than-expected
Chinese data.
The strikes inflamed fears about Middle East tensions and worsening relations between Iran
and the United States, powering safe-haven assets, boosting gold.
Energy stocks are likely to get a boost from the soaring crude price overnight, which saw
Brent post its biggest intraday percentage gains since the Gulf War in 1991.
Data showed the slowdown in China's factory and consumer sectors deepened in August, with
industrial production growing at the weakest pace in 17-1/2 years, a sign of increasing weakness
in an economy lashed by trade headwinds and soft domestic demand.
"Slower production and sales data in China kept the worries of a weaker global demand on the
table, despite the short-term supply shortages in oil markets," says Ipek Ozkardeskaya, senior
market analyst at London Capital Group.
Still, the Chinese numbers underscored hopes of further stimulus from the government.
IG financial spreadbetters expect London's FTSE to open 30 points lower at 7,338,
Frankfurt's DAX to open 108 points lower at 12,360, and Paris' CAC to open 43 point lower at
5,613.
(Josephine Mason)
*****
(Reporting by Danilo Masoni, Josephine Mason and Thyagaraju Adinarayan)
International Airlines (IAG)
