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LIVE MARKETS-Opening snapshot: risk off, Morphosis and SSE

Tue, 13th Oct 2020 09:11

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) and Danilo Masoni (danilo.masoni@thomsonreuters.com) in
Milan.

OPENING SNAPSHOT: RISK OFF, MORPHOSIS AND SSE (0738 GMT)

After a three-day rally, it seems that it is going to be a risk-off session as investors are
growing more concerned about new waves of infections and more restrictions are being implemented
across Europe.

Additionally, uncertainties around the U.S. elections and a rescue package to fight the
adverse impact of the pandemic are also keeping investors on their toes.

At an European level, the EU recovery fund might be delayed as some details are currently
being debated in Brussels.

The STOXX 600 index is down 0.3%, with travel and leisure and banking stocks leading losses,
down respectively 1.6% and 1%.

Morphosys is the worst performer, with shares down 9.9%, after the company
launched a convertible bond offering. Stocks in SSE rose 4.2% after the company agreed
to sell its stake in West Yorkshire-based assets.

So far, we've seen mixed reactions among Apple's suppliers ahead of an event where the U.S.
giant is expected to launch its latest iPhone. STMicro, Dialog Semi, Infineon
, ASML stocks are down 0.8% to up 0.5%.

(Stefano Rebaudo)

*****

ON THE RADAR: ROCHE, NESTLE, SSE, PANDEMIC TRAJECTORIES (0647 GMT)

European stocks are poised to open flat amid more worrying news on the coronavirus front and
uncertainties around the U.S. elections, stimulus package.

U.S. stock futures are trading slightly lower.

The number of people being treated in French intensive care units for COVID-19 exceeded
1,500 on Monday for the first time since May 27, raising fears of local lockdowns being imposed
across the country. Meanwhile British Prime Minister Boris Johnson imposed a tiered
system of further restrictions on parts of England.

The war against the pandemic continues: Roche plans to start selling a higher-volume
COVID-19 antigen test for laboratories, which can provide results in 18 minutes, by the end of
the year. Its shares are up 1.1% in premarket trade.

Relief Therapeutics said that more people who received a 50-year-old drug that the
Swiss company is seeking to re-purpose against COVID-19 were alive beyond 60 days than were
those who did not get the medicine.

On the M&A front Aimmune Therapeutics shareholders have backed Nestle's $2
billion offer to gain full ownership of the first U.S.-approved peanut allergy treatment.
British utility SSE agreed to sell its 50% stake in West Yorkshire-based
Ferrybridge and Skelton Grange assets for 995 million pounds ($1.30 billion) in cash, as part of
its strategy to dispose of non-core assets by autumn 2021.

Major French unions on Monday signed a keenly awaited labour deal with Airbus
covering job reductions and furloughs for production workers affected by coronavirus-blighted
demand for passenger jets.

British clothing retailer French Connection Group said sales had halved, more than
tripling its underlying loss compared to the same period a year earlier.
Yamana Gold stocks are admitted to the London stock exchange.

(Stefano Rebaudo)

*****

MORNING CALL: RISK SENTIMENT IN CHECK (0533 GMT)

European stock futures are almost flat, with their U.S. peers in negative territory, as
uncertainties provided by the coronavirus, the U.S. elections and stimulus as well as Brexit
keep risk sentiment in check.

U.S. tech shares rallied on Wall Street overnight but, according some analysts, the
resurgence of the pandemic is boosting stay-at-home type of technology stocks.

Asian stocks failed to take the cue from the U.S. as possibile tensions between Beijing and
Washington were also in view after the White House moved forward with three sales of advanced
weaponry to Taiwan. The move is going to anger China which considers Taiwan a renegade province.

(Stefano Rebaudo)

*****

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