Live Markets: Opening snapshot: Down we go

Alligo AB

11/11/2019 08:37

* European shares open lower
    * STOXX 600 down 0.2%
    * HK chaos hits sentiment
    * Greggs lifts guidance, shares up 11%

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  
    
    
    OPENING SNAPSHOT: DOWN WE GO (0836 GMT)
    The escalating protests in Hong Kong and another inconclusive general election in Spain have
resulted in a weaker open for Europe this morning with major benchmarks all trading in the red.
    The STOXX 600  .STOXX  is falling for a second session in a row, down 0.2% on the day. 
    The FTSE  .FTSE  is down 0.6% and the DAX  .GDAXI  is falling 0.3% and the IBEX  .IBEX  is
down 0.4%, while Switzerland's defensive SMI  .SSMI  is up 0.2%.
    Luxury stocks are weighed down by the HK chaos: LVMH  LVMH.PA , Kering  PRTP.PA  and
Richemont  CFR.S  just to name a few, are down between 0.1 and 2.2%. Richemont is getting an
extra drag after a couple of brokers slashed their price targets.
    Baker and takeaway food group Greggs  GRG.L  upgraded its profit guidance for 2019, lifting
its stock 11% to the top of the STOXX. 
    There's also some M&A action with tools and work wear supplier Swedol  SWOLb.ST  up 38%
after Momentum Group  MMGRb.ST  launched an offer.    
    (Danilo Masoni)
    *****       

    
    ON OUR RADAR: VEGAN SAUSAGE ROLLS AND LUXURY STOCKS (0757 GMT) 
    European markets are expected to open in the red. The HK chaos which has hit Chinese markets
and Asia more broadly is doing little for sentiment here, particularly in the absence of fresh
news on the trade war front. 
    In any event, European luxury stocks, which are always very sensitive to HK news, would be
expected to have a tough start.
    Spain's IBEX  .IBEX  isn't expected to shine as the general election proved inconclusive
amid a surge for the far-right. 
    All eyes will be on the UK GDP after Moody's cutting its outlook last Friday. 
    It's not all grim in Britain however with Greggs  GRG.L  and its now (in)famous vegan
sausage roll, upgrading its outlook and showing that the UK high street isn’t going down without
a fight.     
    It's an otherwise slow Q3 day and so not much action is coming on the front of corporate
earnings. A few publications could however catch the eye of investors such as German software
group Teamviewer  TMV.DE  which announced core profits up 95% in its first results since its
IPO. 
    French insurer AXA  AXAF.PA  said it expected to book net proceeds of $3.1 billion from the
sale of a 29% stake in AXA Equitable Holdings as it exits its U.S. life insurance business.
    More M&A with Aspen Pharmacare Holdings selling its Japanese operations to Novartis NOVN.S 
' Sandoz in a 400 million euros deal. German payment group Wirecard  WDIG.DE  also announced a
strategic partnership with Here Moblity. 
   Another possible mover is embattled Swiss steelmaker Schmolz & Bickenbach  STLN.S  which will
ask shareholders for permission to raise up to $616.16 million in new capital. 
    Also to note a report in Sueddeutsche Zeitung saying Daimler  DAIGn.DE  will cut 1,100
managing positions worldwide.
    (Julien Ponthus) 
    *****      
    
    GRIM MOOD IN EUROPE AFTER HONG KONG CHAOS HITS ASIA (0639 GMT)
    European bourses are expected to open in negative territory this morning after unrest in  
Hong Kong triggered a sell-off in Chinese bourses and hit Asian markets bourses.  
    There isn't much visibility on the trade war from and it's likely investors would want to
get a fresh update on U.S./China negotiations before taking strong directional bets. 
    In Europe the UK will be under the spotlight as a big batch of indicators, including GDP, is
about to be published in the wake of Moody's cutting its outlook for British debt on Friday. 
    Spain's Sunday election seems to have been quite inconclusive so no reason really for the
IBEx to shine, particularly with far-right Vox party more than doubling its number of MPs.
    The Q3 earnings season isn't over but it's a slow day, more action to come for Europe Inc
later this week.
    Financial spreadbetters expect London's FTSE to open 3 points lower, Frankfurt's DAX to lose
 15 points and Paris' CAC to shed 8 points. 
    (Julien Ponthus) 
    *****  


    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
open    https://tmsnrt.rs/32BXQLj
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Danilo Masoni, Joice Alves, Julien Ponthus and Thyagaraju Adinarayan)