Live Markets: Stock futures rise on rate cut hints, but worries about results weigh
11/07/2019 07:43
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters
stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share
your thoughts on market moves: thyagaraju.adinarayan.thomsonreuters.com@reuters.net
STOCK FUTURES RISE ON RATE CUT HINTS, BUT WORRIES ABOUT RESULTS WEIGH (0642 GMT)
European stock futures are rising 0.4% to 0.5% as investors seem to be shifting focus back
to rate cuts after U.S. Fed chairman Powell's testimony strongly hinted at "insurance" cuts
later this month.
But, global growth worries and the impact on corporate profits could keep a lid on gains as
the second-quarter earnings season gets underway.
Last afternoon's trading highlighted the nervousness among investors after Europe swung from
negative to positive to then closed in the red.
That's "a neat summary of the current battle of influence between central bank support and
the still cloudy outlook for economic growth and hence corporate profits," Ian Williams,
economics & strategy research analyst at Peel hunt said.
Germany's Aumann AAGG.DE , Krones KRNG.DE and Deutsche Beteiligungs DBANn.DE have
issued warnings on profits, sending their shares down 8-10% in premarket trade. Europe's largest
sugar refiner, Suedzucker, is seen 7% lower as it continues to struggle with a collapse in world
sugar prices.
In positive news, Barry Callebaut is rising 2.6% premarket after the Swiss chocolate maker
confirmed its mid-term guidance and posted an acceleration in sales volumes for the nine months
to May 31.
But news not related to results may take the spotlight this morning.
The boss of Europe's Ryanair has warned the impact of the prolonged grounding of Boeing's
737 MAX on the budget airline's growth plans may start to spill over to next summer if the
airplane is not flying again by November.
Swiss Re SRENH.S is seen 0.5% lower after suspending its planned $4.1 billion public
offering of its UK life insurance company ReAssure citing weak demand from institutional
investors.
Reckitt Benckiser shares could be hit after it said it would pay up to $1.4 billion to
resolve all U.S. federal investigations into the firm in connection with the sales and marketing
of Suboxone Film by its former prescription pharma business Indivior. Reckitt had set aside just
$400 million relating to the issue.
U.S. criminal charges accused Indivior, formerly owned by Reckitt, of illegally increasing
prescriptions for its opioid addiction treatment Suboxone.
In latest Deutsche Bank news, the U.S. Justice Department is investigating if the German
lender violated foreign corruption or anti-money-laundering laws in its work for state fund
1Malaysia Development Berhad (1MDB), the Wall Street Journal reported.
Dialysis machine maker Fresenius Medical Care FMEG.DE shares are up in premarket trade
after the U.S. announced plans to change kidney disease treatment.
Key corporate headlines:
Suedzucker quarterly earnings slump after sugar price collapse urn:newsml:reuters.com:*:nL8N24C0DR
Swiss Re suspends ReAssure IPO amid weak demand urn:newsml:reuters.com:*:nL8N24C0IW
Barry Callebaut confirms guidance as sales growth picks up urn:newsml:reuters.com:*:nL8N24C0IC
U.S. probes Deutsche Bank's dealings with Malaysia's 1MDB - WSJ urn:newsml:reuters.com:*:nL4N24C0QO
UK's Reckitt to pay up to $1.4 bln to resolve Indivior probe urn:newsml:reuters.com:*:nL8N24C0XD
Ryanair sees risk to 2020 growth if 737 MAX grounded beyond November urn:newsml:reuters.com:*:nL2N24B1P3
Norwegian Air CEO Bjoern Kjos steps down urn:newsml:reuters.com:*:nASP00148Z
(Thyagaraju Adinarayan)
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EUROPE SEEN HIGHER ON STRONG HINTS OF RATE CUT BY FED (0530 GMT)
European stocks are expected to open higher this morning as U.S. Fed Chairman Jerome
Powell's testimony before Congress reinforced expectations of a rate cut later this month.
The commentary drove U.S. stocks to fresh record highs last evening. urn:newsml:reuters.com:*:nL2N24B1QQ
Financial spreadbetters IG expect London's FTSE to open 26 points higher at 7,557,
Frankfurt's DAX to open 47 points higher at 12,421, and Paris' CAC to open 27 points higher at
5,595.
Oil & gas stocks in focus after crude prices soared 4.5% last night after U.S. crude
inventories shrank and as major producers cut nearly a third of offshore Gulf of Mexico
production ahead of an expected storm. O/R
(Thyagaraju Adinarayan)
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(Reporting by Danilo Masoni, Helen Reid, Josephine Mason and Thyagaraju Adinarayan)