February 9, 2018 / 7:46 AM / 10 months ago

LIVE MARKETS-What's on the radar for the European open

    * U.S. stocks plunged around 4 percent
    * Asian shares sink
    * European bourses seen opening lower

    Feb 9 (Reuters) - Welcome to the home for real time coverage of European equity markets
brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. Reach him on
Messenger to share your thoughts on market moves: julien.ponthus.thomsonreuters.com@reuters.net
    
    WHAT'S ON THE RADAR FOR THE EUROPEAN OPEN (0746 GMT) 
    We're officially in a correction, the bottom of which is elusive and could very well throw
the bulls out of their nine year run. 
    European stocks are set to open moderately in the red after Wall Street’s fresh sell-off but
don’t seem to be on their way to replicate the extent of their U.S. peers fall.
    Limited news on the corporate front so far but quite an event in Britain with the Daily
Mirror buying the Daily Express. 
    There's a potentially huge M&A deal with traders pointing to an FT report saying L'Oreal
 is ready to buy Nestle's 23 bln euros stake in the French cosmetics company. 
    European banks are giving encouraging signals with Mediobanca this morning lifting its
dividend.
    On the other hand Britain's Nationwide Building Society reported a 6 percent fall
in nine-month statutory pretax profit, hurt by lower consumer spending.     
    Belgium’s Umicore also easily managed to raise close to 900 million euros to fund new
investments in rechargeable battery materials at a discount of 2.7 percent to Thursday's closing
price.
    Maersk missed fourth-quarter core profit expectations. 
    German consumer electronics retailer Ceconomy reported a 16 percent drop in operating profit
last month due to price reductions around Black Friday. 
    (Julien Ponthus) 
    *****
    
    "A REASSESSMENT OF THE INFLATION OUTLOOK IS NATURAL" (0731 GMT)
    This late-cycle environment leads logically to readjustments in the market around inflation
expectations, says JP Morgan Asset Management global market strategist Kerry Craig. 
    "Equities can handle higher rates and bond yields... what they are not good at dealing with
is the pace at which they move," adds Craig. 
    "A reassessment of the inflation outlook at this point in the cycle is natural and markets
are adjusting for this," he says, adding that markets still haven't adjusted to the expectation
that the U.S. Federal Reserve could raise rates four times in 2018. 
    He reckons, with the S&P 500 falling into correction territory, the most severe market
swings have passed. We'll see about that later today...
    Next week's U.S. inflation numbers will of course be key, and Craig admits a strong figure
could cause more disruption. 
    (Helen Reid)
    *****
    
    FUTURES POINT TO A LIMITED RETREAT AT THE OPEN (0711 GMT) 
    As we noted earlier, European markets don't seem to be heading to replicate Wall Street's
overnight fall and set to post only limited losses. That being said, European bourses already
had a fair beating during the previous sessions.  
    DAX futures are now even in positive territory:    
 
    (Julien Ponthus)
    *****  
    
    "HERE WE ARE IN OFFICIAL CORRECTION TERRITORY" (0650 GMT)
    Sometimes you just have to call a spade a spade, and that's what Rabobank analysts did in
their morning note.
    "Here we are in official correction territory", they wrote, pointing out that with
Thursday's drops, the benchmark S&P 500 and the Dow industrials have fallen more than 10 percent
from Jan. 26 record highs.
    
    (Julien Ponthus)
    *****
       
    BAML'S BULL & BEAR INDICATOR STILL SAYS SELL (0635 GMT) 
    Bank of America Merrill-Lynch's indicator of market sentiment is down from 8.6 to 8.5 but
that, according to its analysts, remains in "excess bullish" territory and still signals a 
"sell". 
    The indicator had jumped of market sentiment jumped from 7.9 to 8.6 on Jan 30, driven up by
record inflows to equities and bullish hedge fund risk appetite.
    (Julien Ponthus)
    *****
    
    MORNING CALL: EUROPE TO OPEN IN THE RED AFTER NEW WALL STREET SELL-OFF (0615 GMT)  
    Good morning and welcome to Live Markets. 
    European bourses are expected to open in the red this morning after Wall Street's fresh new
sell-off. The bottom of the slide remains elusive but this current trend sure seems to be
threatening to throw the market's bull run off course.
    Spreadbetters are calling the DAX 23 points lower, the CAC 40 down 8 points, and the FTSE
down 40 points.
    Considering that U.S. stocks plunged around 4 percent on Thursday, this looks, so far, like
a limited reaction from our side of the pond. .     
    (Julien Ponthus)
    *****

    
 (Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below