Sept 15 - 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
JUST EAT A BITTER BREAKFAST FROM DELIVEROO AT THE OPEN!
(0738 GMT)
As expected, European stock markets opened slightly in the
red this morning but it's not the 0.1% dip that's providing the
excitement but rather a duel between food delivery services.
Just Eat Takeaway is among the top losers on the STOXX 600,
down 3.5% after news reports that Amazon and Deliveroo have
teamed up to offer free delivery to 'Amazon Prime' subscribers.
Deliveroo is up a more modest 1% but the delta between the
share price of the two rivals tells quite a lot about the fierce
competition to become the dominant player in this fast-growing
sector.
The retail space is also under pressure with H&M down over
2% after reporting lower than expected sales, which remain below
pre-pandemic levels as restrictions kept shoppers away from
stores.
Pre-markets calls were positive for Spain's Inditex which
was seen rising by 2% on average at the open. Traders took a
more cautious view when cash trading began and the owner of
fashion brand Zara is losing 0.5% after its H1 results.
Among stocks shining through this morning is tobacco group
Swedish Match, up 2.7% after announcing it would spin off its
U.S. cigar business to shareholders.
(Julien Ponthus)
*****
PEAK INFLATION, SERIOUSLY? (0658 GMT)
News that inflation came off the boil in the United States
last month was a win for those in the "inflation is transitory"
camp and markets cheered the news too. But not so fast.
Not only was relief in equity and bond markets short-lived
but there are plenty of other signs that the inflation debate is
far from over.
Take data out this morning in Europe showing British
inflation hit a more than nine-year high last month after the
biggest monthly jump in the annual rate in at least 24 years.
And for some, Tuesday's U.S. data perhaps masks the supply
shortages and disruptions that are pushing up prices globally.
Michael Every, global strategist at Rabobank put it like
this in a note: "You know where else used to have low reported
inflation, but no goods on the shelves? It started with US and
ended SR."
In the meantime, investors have other concerns on their mind
- notably further signs of a slowdown in the world's number two
economy.
China's factory and retail sectors faltered last month with
output and sales growth hitting one-year lows as fresh
coronavirus outbreaks and supply disruptions took a toll.
Adding to China's woes are nagging concerns about property
developer Evergrande. Ratings agency Fitch is warning that
numerous sectors could be exposed to heightened credit risk if
the firm were to default on its debt, although the impact on the
banking sector would be manageable.
Asia shares are down, stock futures suggest European shares
will open a touch lower although on a positive note for Wall
Street, U.S. stock futures are trading in positive territory.
Key developments that should provide more direction to
markets on Wednesday:
- Apple's new iPhone 13 touts faster 5G, sharper cameras to spur
trade-ins
- Japan's machinery orders rebound in sign of capex recovery
- Euro zone industrial output, employment, wages
- ECB Bond Market contact group annual online conference.
- ECB speakers: Board member Isabel Schnabel, chief economist
Philip Lane
- Russian central bank's governor, Elvira Nabiullina. Speaks at
Russian banking forum
- Georgia central bank meeting
- NY Fed manufacturing index/US industrial output
(Dhara Ranasinghe)
*****
EVERGRANDE, CHINESE DATA WEIGH ON FUTURES (0621 GMT)
European equity futures are trading in negative territory
this morning and truth be said, there's some troublesome news
coming from the East where MSCI's broadest index of Asia-Pacific
shares outside Japan dropped 0.7%.
Weaker-than-expected Chinese economic data hit the country's
blue chip index which fell over 1%.
But beyond the concerns about global growth, the fate of
China's Evergrande is on many investors' mind.
Will it be a messy meltdown? A managed collapse? A bailout
by Beijing or can it be bought out?
Rating agency Fitch said that numerous sectors could be
exposed to heightened credit risk if China's No.2 property
developer were to default, although the overall impact on the
banking sector would be manageable.
Add in the concerns fuelled by the Chinese government's
regulatory crackdown and the picture for the world's second
biggest economy isn't just that bright.
Among worries closer to European investors, British
inflation surged last month to its highest level since March
2012, which will no doubt activate speculation about when the
BoE will tighten its monetary policy.
(Julien Ponthus)
*****