Welcome to the home for real-time coverage of European equity markets brought to you by Reuters
stocks reporters and anchored today by Joice Alves. Reach her on Messenger to share your
thoughts on market moves: joice.alves.thomsonreuters.com@reuters.net
LUXURY STOCKS STEAL THE STAGE (0859 GMT)
Luxury stocks are taking the stage in Europe after reports the owner of Gucci and Balenciaga
Kering is in talks to acquire Italy's Moncler.
Shares in Moncler jumped over 11% and hit record high after the report of Kering's
interest.
Burberry's shares are up 3% and shares in Hugo Boss are up 2.3%.
More broadly, European shares steadied after yesterday's stellar gains, as mixed signals on
a U.S.-China "phase-one" trade deal continued to discourage investors from making risky bets.
Here is a snapshot of the European bourses at the open:
(Joice Alves)
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ON OUR RADAR: LUXURY AND MONEY ( 0753 GMT)
Stock futures of most European bourses point to a flat or slightly higher start as investors
try and make sense of the latest development of the 17-month trade war between the U.S. and
China, while digesting some weak industry data from Germany.
Sentiment improved yesterday after Bloomberg reported that the two countries were closer to
seal a "phase-one" deal and Trump said trade talks were going "very well".
But European bourses will have the German industry orders data to digest. Orders fell by
0.4%in October.
The top movers are expected to be Kering and Moncler. Traders see
Moncler's shares up 8 to 10% higher after reports that the parent company of Gucci and
Balenciaga has held exploratory talks to buy the Italian brand.
Reuters reported yesterday that the U.S. threat of tariffs on French goods from handbags to
Champagne are proving just a glancing blow to giants like LVMH and Kering
this week, as investors say high pricing power can protect the luxury brands.
More on the M&A front: European stock market operator Euronext agreed to buy a 66%
stake of Nordics-focused power market firm Nord Pool, in a deal valuing the company 850 million
Norwegian crowns ($93 million), including debt.
Metro Bank is under pressure as its chief executive Craig Donaldson is leaving
after a torrid year in which the British lender was engulfed in a damaging accounting scandal
that has also cost it its chairman and wiped 90% off its market value.
Corporate headlines to digest:
Ryanair cuts planned capacity and jobs, blames 737 MAX delays
Italian court blames penny pinching for falsified bridge checks at Atlantia
Novartis CEO plans 80+ submissions for drug approvals through 2022
(Joice Alves)
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A SLOW START(0635 GMT)
European bourses are expected to open flat or slightly higher as the Asian stock market
inched higher after a Bloomberg report yesterday that the the U.S. and China were closer to seal
a "phase-one" deal, but conflicting messages from U.S. President Donald Trump kept a lid on the
advance.
While investors try and make sense of the latest developments, which could end the 17-month
trade war between the world's largest countries, they will also have to digest the latest German
factory orders data for October, due today and expected to be weaker, as well as the euro zone's
Q3 GDP figures and monthly retail sales data.
Financial spreadbetters at IG expect London's FTSE to open flat at 7,189, Frankfurt's DAX to
open 10 points higher at 13,151 and Paris' CAC to open 6 points higher at 5,806.
(Joice Alves)
*****
(Reporting by Danilo Masoni, Joice Alves, Julien Ponthus and Thyagaraju Adinarayan)
Burberry (BRBY)