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EUROPEAN FUTURES UP, BUT BEWARE BAD NEWS FROM AUTOS, CHIPMAKERS AND PERSIL MAKER (0719 GMT)
European futures are higher, defying earlier calls for another drop by financial spreadbetters as renewed optimism over a possible end to the prolonged trade spat between the United States and China appeared to offset worries over Rome’s showdown with Brussels and May’s Brexit drama.
Some negative headlines may curb the gains though: China has poured cold water on industry hopes for a cut in auto purchase taxes, in Austria AMS cut its sales forecast, the latest chip supplier hurt by Apple’s weak sales forecast for the upcoming holiday season, and Henkel shares are indicated lower after the maker of Persil detergent and Loctite adhesives reported a slowdown in sales.
AMS shares are seen down 10 percent at the open. They have already lost almost a third of their market cap this month, on track for their worst month in a decade.
Here are this morning’s headlines to watch:
Austria’s AMS becomes latest Apple supplier to slash forecast
China state planner douses hopes for auto tax cuts, tells sector to buckle up
Henkel sales growth slows as adhesives cool
Hugo Boss seeks sales boost from speed, online, Asia
French group Bouygues maintains toned-down outlook as 9-month profits fall
NN Group’s Q3 profit rises on improving Dutch market
European passenger car sales slump 7.4 pct in October
Global regulators hold off designating ‘too big to fail’ insurers
Linde AG expects revenue and earnings to be at top end of forecast
Antofagasta approves $1.3 bln Los Pelambres copper mine expansion
K+S cuts outlook after dry weather weighs on production
SKF to increase cost focus against an uncertain macro backdrop
Dutch insurer NN Group’s Q3 core profit beats estimates with 7 pct rise
UK forced to accelerate planned reform to gambling regulations
Ericsson doesn’t see sales lift after security concerns hit Chinese rivals
Vodafone may replicate elements of UK tower sharing venture elsewhere
Britain’s Lloyds agrees settlement with HBOS whistleblower
BMW, Vodafone, Ericsson urge EU to consider 5G car standard
Good morning and welcome to Live Markets.
European stocks are called to open lower today even after Asian equities rose overnight on news that China has delivered a written response to U.S. trade demands.
Politics and falling oil prices continue to overshadow, with Brexit drama dominating the UK market and Italy’s deepening budget crisis and showdown with the EU Commission driving bond yields up and bank stocks down.
“While (Theresa May was able to achieve what she called collective approval from her cabinet to accept the deal, the gritted teeth consensus could well be tested in the coming days,” says Michael Hewson, chief market analyst at CMC Markets UK.
Financial spreadbetters call the DAX 30-35 points lower, the CAC40 is expected to open 11-15 points lower and the FTSE 100 will be flat to down 28 points, according to IG and CMC Markets UK.