February 2, 2018 / 7:59 AM / 9 months ago

LIVE MARKETS-What you need to know before Europe opens

    * European stock futures steady
    * Eyes on US payrolls data
    * Apple posts record profit, Alphabet disappoints

    Feb 2 (Reuters) - Welcome to the home for real time coverage of European equity markets
brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Reach him on
Messenger to share your thoughts on market moves: danilo.masoni.thomsonreuters.com@reuters.net
 
    
    WHAT YOU NEED TO KNOW BEFORE EUROPE OPENS (0745 GMT)
    European shares are set to open flat to slightly lower at the end of a week where rising
bond yields and strength in the euro have pushed the STOXX 600 benchmark down around 1.7
percent.
    That is already the biggest one-week loss since early November when a slowdown in earnings
growth and similar bond market jitters weighed. Futures were trading between flat and a fall of
0.2 percent.
    Tech stocks will be in focus after U.S. internet giants released their earning updates
yesterday with a record profit at Amazon possibly boosting shares in companies like Zalando,
while shares in semiconductor companies like AMS, Dialog Semi, and IQE are expected to open
lower after Apple issued a light guidance and reported it sold fewer iPhones over the holiday
quarter than Wall Street had expected.
    There is a raft of results in Europe too that will keep investors busy. Overall,
fourth-quarter earnings for the STOXX 600 are expected to increase by 11.9 percent year on year,
the latest Thomson Reuters data showed.      
    Deutsche Bank shares are indicated down 4 percent after the German lender reported a bigger
than expected net loss for 2017, which could test a strong rally in banking stocks seen so far
this year which was fuelled by expectations over tighter monetary policy and strong economic
growth. 
    (Danilo Masoni)
    ****

    EARLY MORNING EUROPEAN HEADLINE ROUND-UP (0738 GMT)
    Lots of earnings today, here's what's jumped out so far:
    
    Deutsche Bank posts third consecutive annual loss in 2017
    Spain's Caixabank Q4 profit falls 70 pct from Q3
    Spain's Sabadell Q4 net profit more than doubles on one-off sales
    Danske Bank beats Q4 pretax expectations, expects lower 2018 net result

    Nordea banking group to list Finnish unit on Scandinavian exchanges
    Philips Lighting Q4 earnings beat estimates on cost cutting
    Tyre maker Nokian Q4 profit up 13 pct yr/yr
    Tools maker Husqvarna Q4 result, dividend better than expected
    Aker BP Q4 core profit lags market expectations
    Fortum Q4 profit jumps 57 pct yr/yr
    Tele2 says will aim to grow dividends, Q4 core profit matches forecasts

    Hexpol Q4 operating profit matches forecast​
    Cevian Capital raises Ericsson stake to 5 pct of votes
    Spanish property developer Metrovacesa cuts listing price    
    AirAsia CEO says looking at Boeing 787 for AirAsia X fleet growth    
    AstraZeneca flags return to drug sales growth in 2018
    Britain's BT says on track for year after Q3 meets its expectations
    Cobham sells communications units to Viavi for $455 million​
    Doorstep lender Provident Financial names new CEO
    Satellite company Avanti appoints new CEO​    
    EU clearing house system passes stress test    
    (Kit Rees)
    *****
    
    BUT FUTURES POINT TO STEADY OPEN FOR EUROPEAN SHARES (0702 GMT)
    Contrary to earlier calls from financial spread-betters, European stock index futures have
opened with slight gains, indicating this week's sell-off could ease somewhat.
    The STOXX 600 is down around 1.8 percent so far this week, set for its biggest weekly loss
since November 
    Here's your snapshot:    
 
    (Danilo Masoni)
    *****
        
    DEUTSCHE BANK POSTS BIGGER THAN EXPECTED LOSS (0643 GMT)
    Banks, recently buoyed by rising bond yields and optimism about economic growth, could be in
focus today after the DAX-listed heavyweight lender disappointed analyst expectations with a
2017 loss of 497 million euros in 2017. 
    (Danilo Masoni)
    *****
    
    MORNING CALL: EUROPE SET TO EXTEND LOSING STREAK (0630 GMT) 
    Good morning and welcome to Live Markets. 
    Rising bond yields and a stronger euro are likely to put European shares under pressure for
a fifth day in a row, one day after the export oriented German DAX index fell 1.4 percent - its
biggest one-day loss since early November.  
    Over in Asia, the euro neared multi-year peaks as talk of policy tightening in Europe and
expectations that inflation is set to gear higher drove up borrowing costs globally, a move that
sparked a sell-off in Asian equities.
    Later in the day the focus will be the U.S. payrolls report. "Anticipation is elevated after
a hawkish FOMC meeting... A strong number may increase the probability of four rate hikes this
year," says Credit Suisse in its investment daily note.
    We'll also be keeping an eye on tech stocks here in Europe after results from big internet
companies in the US. "Some anxiety is fuelled by a trend for companies that miss estimates to be
penalized... Facebook bucked the trend, forecasting rising ad sales despite a dip in usage.
Apple reported record quarterly revenue and profits after the bell, Amazon’s results easily beat
expectations, but Alphabet disappointed," adds Credit Suisse.
    Back to Europe, here are your opening calls, courtesy of CMC Markets.
    FTSE100 is expected to open 5 points lower at 7,485
    DAX is expected to open 63 points lower at 12,940
    CAC40 is expected to open 9 points lower at 5,445
    (Danilo Masoni)
    *****

    
 (Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus)
  
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