Live Markets: Opening snapshot: sideways
11/09/2020 08:21
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 Danilo Masoni and Stefano
Rebaudo (stefano.rebaudo@thomsonreuters.com) in Milan.
OPENING SNAPSHOT: SIDEWAYS (0720 GMT)
A mixed open for Europe with a slight bias towards risk-off as telecom,
utilities and healthcare stocks are performing a tad better than travel &
leisure, oil and banking stocks.
In single names, Altice Europe's ATCA.AS shares soar 25% after it agreed
to be bought by its founder Patrick Drahi. That, pan-European exchange
Euronext's ENX.PA discussion with LSE on buying Borsa Italiana and Aryzta's
talks with Elliott Advisors over an M&A deal are some of the major movers this
morning.
As expected, Accor ACCP.PA is dropping 2% on CAC 40 exclusion, while
Alstom ALSO.PA is riding higher on its inclusion into CAC 40.
Among fallers, Knorr-Bremse KBX.DE is down 7% on cash call. While airlines
and airport operators are down 2% to 3% amid rising coronavirus cases in Europe.
(Thyagaraju Adinarayan)
*****
ON OUR RADAR: EXCHANGES' M&A, BLUE-CHIP EXITS, CASH CALLS (0641 GMT)
So, the UK's July GDP data came in somewhat in line with estimates and
markets continue to point to a small loss at the open as the U.S. tech selloff
hangover and souring Brexit talks keep investors away from making risky bets.
Switching from macro to micro, Rio Tinto RIO.L in focus after it parted
ways with its CEO and two senior executives, bowing to shareholder criticism of
the destruction of two significant Aboriginal rock-shelters and the miner's
limited initial response.
In another executive-related move, shares in Bayer BAYGn.DE are rising
1.7% after Werner Baumann won an extension of his contract until 2024 and the
company said a settlement over the Roundup cancer claims would be settled within
weeks.
In M&A, pan-European exchange Euronext ENX.PA says it is in dicussions to
submit an offer to the LSE to buy the Milan stock exchange, Borsa Italiana. Also
on the deals front, Swiss frozen baked goods maker Aryzta ARYN.S is seen
rising 5-15% after it said it was in advanced talks with PE firm Elliott
Advisors over an M&A deal.
Shares in Knorr-Bremse KBX.DE , which makes braking systems and other
subsystems for rail and commercial vehicles, are tanking 7% in early trade after
a key investor sells 10 million shares in the company.
Coronavirus-hit hotels group Accor's ACCP.PA deletion from the French
blue-chip index CAC 40 and Ence's ENC.MC exit from Spain's IBEX 35 is seen
hitting their shares, according to traders. Alstom ALSO.PA will replace Accor
and Pharma Mar PHMR.MC will take Ence's place.
The biggest faller in Europe is likely to be Solocal LOCAL.PA after its
336 million euro cash call. A trader expects the stock to fall 50%.
(Thyagaraju Adinarayan)
*****
MORNING CALL: TODAY IS NO DIFFERENT (0549 GMT)
ECB's less dovish message, the Brexit fatigue, a U.S. tech selloff and a few
other external factors have been enough to keep European bourses in a rangebound
trade for some time now and today is no different. Another dull session ahead
with European stocks seen falling 0.1%.
Spoiling the mood further, the U.S. Senate on Thursday killed a Republican
bill that would have provided around $300 billion in new coronavirus aid, as
Democrats seeking far more funding prevented it from advancing.
Among key data releases, UK July GDP data will give us an insight on the
scale of the bounceback in economy after the re-opening of pubs, restaurants,
hairdressers and barbers.
(Thyagaraju Adinarayan)
*****