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 Danilo Masoni
(danilo.masoni@thomsonreuters.com) and Stefano Rebaudo (stefano.rebaudo@thomsonreuters.com) in
Milan.
OPENING SNAPSHOT: BUYING RETAILERS, EYES ON THE FED (0743 GMT)
European stocks are slightly higher, supported by the retail sector after stronger than
expected results from Zara owner Inditex.
Investors are reluctant to take big positions ahead of today's Federal Reserve policy
meeting. Their focus is on the central bank's economic view with some expectations it might take
further steps on the accommodative side.
Travel and leisure stocks are still under pressure after Lufthansa said it could
cut its fleet by 130 planes, 30 planes more than recently panned.
Europe's STOXX 600 index is up 0.2% led by Retailers, up 1.4%, while Travel and
Leisure stocks are the worst performers, down 0.4%
Inditex is up 5.5% after the company returned to quarterly profit though reported
sales down 31% on the year-ago period. Sweden’s Handelsbanken is up 3.3% as the
company will reduce its workforce and number of branches.
A whooping 30% rise for The Hut Group in its first day of trading on the London
Stock Exchange to seal the first major British initial public offering since the start of the
COVID-19 crisis.
(Stefano Rebaudo)
*****
ON THE RADAR: ASTRAZENECA, THE HUT GROUP, HANDELSBANKEN (0644 GMT)
European stocks are set to open slightly lower as investors wait for Federal Reserve policy
statement and economic view later today.
Vaccine developments are still on the frontline after the U.S. Food and Drug Administration
confirmed AstraZeneca's U.S. COVID-19 vaccine trial is on hold, as it conducts its
investigation after an illness in a participant in Britain.
Meanwhile in India, the local drugs regulator has given approval to Serum Institute of India
to resume clinical trials of the potential vaccine developed by AstraZeneca and Oxford
University, according to a Times of India report.
In London, e-commerce firm The Hut Group is preparing for its first day of trading
after batting away corporate governance concerns to seal the first major British initial public
offering since the start of the COVID-19 crisis.
Elsewhere, Handelsbanken will reduce its number of branches to around 200 from 380
by the end of 2021 and reduce its workforce, affecting around 1,000 employees in Sweden over the
next two years, as part of a review of the group's business operations.
Eyes also on Lufthansa which could cut its fleet by 130 planes in response to the
coronavirus crisis, 30 planes more than recently panned.
In results, fashion retailer Inditex, owner of Zara, returned to quarterly profit
in the three months from May to July but reported sales down 31% on the year-ago period.
There could be a positive readacross for Deutsche Post and Royal Mail
from stronger than expected results at U.S. delivery firm FedEx.
Finally Atlantia is ready to approve the listing of its motorway assets as early as
next week, challenging the solution favoured by the Rome government to solve a long-running
dispute with the infrastructure group.
(Stefano Rebaudo)
*****
MORNING CALL: WAITING FOR THE FED (0528 GMT)
European stock futures are hovering around yesterday levels with no clear direction as
investors await a Federal Reserve policy statement later today.
Yesterday’s upbeat U.S. and China macro data increased risk sentiment, but concerns about
the economy remain on fears of a second wave of virus-induced restrictions as well as a
political impasse over a new relief package in the U.S.
The Fed policy meeting which ends today is the first one since chairman Jerome Powell
announced a new stance on inflation and some analysts hope the U.S. central bank might take a
step forward on the accommodative side.
(Stefano Rebaudo)
*****
Astrazeneca (AZN)
