Live Markets: What's on our radar at the open

CropEnergies AG

09/10/2019 08:02

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'S ON OUR RADAR AT THE OPEN (0702 GMT)
    European shares are expected to stabilise this morning, although worries over mounting
tensions between Washington and Beijing ahead of high level talks persist, likely limiting any
gains, as the outlook for earnings growth deteriorates further.
    After main regional benchmarks suffered losses of around 1% on Tuesday, futures on main
European indexes are trading between a rise and a fall of around 0.1%.
    According to the latest I/B/E/S Refinitiv data, European companies are expected to report a
3% drop in Q3 earnings, worse than the 2.2% fall expected a week ago. That fall would be the
third in a row, prolonging an earnings recession in Europe.
    Shares in Plastic Omnium  PLOF.PA  are expected to be heavily hit after the plastic
processing group with business in the automotive and environment sectors cut its FY operating
margins target. Dealers expects the shares to open down 3-10%.
    Elsewhere in results the picture is not so bad. 
    A solid update from Takeaway.com  TKWY.AS , which reported an 87% increase in Q3 orders, is
set to lift shares in the online food delivery company with a positive read-across for UK's Just
Eat  JE.L . Takeaway is in the process of merging with the UK company.
    Good-looking updates also from Cropenergies  CE2G.DE , GVC  GVC.L , Codemaster  CDM.L  and
OMV  OMVV.VI , all seen rising at the open.    
    In another sign of how Hong Kong tensions are taking their toll on the luxury industry, a
Daily Telegraph report that Burberry  BRBY.L  is braced for 100 million pound ($122 million) hit
to sales from the protests in the former British colony are seen sending its shares down 1% at
the start. After the market close today, LVMH  LVMH.PA  will report its own update.
    Meanwhile, China's state media criticised the iPhone maker Apple for an app used by Hong
Kong protesters. That has weighed on Apple suppliers in China and could also dampen the mood for
European names such as ams  AMS.VI  and Dialog Semi  DLGS.DE .
    
    Other stock movers: 
    Kingfisher names Bernard Bot as finance chief  urn:newsml:reuters.com:*:nFWN26T0SX; 
    Renault to start search for new CEO - Le Figaro  urn:newsml:reuters.com:*:nL5N26T66G; 
    Italian prosecutors seek trial for BT Italy, former execs in fraud case  urn:newsml:reuters.com:*:nL5N26T2HB; 
    EDF’s Flamanville nuclear plant faces 1.2 bln euros in added costs  urn:newsml:reuters.com:*:nL5N26T5ZQ; 
    GSK recalls popular heartburn drug Zantac globally after cancer scare  urn:newsml:reuters.com:*:nL5N26T4ZV
    
    (Danilo Masoni)
    *****
    
   

    EUROPE'S SELL-OFF SEEN CALMING DOWN (0530 GMT)   
    After trade and Brexit angst caused heavy and widespread losses, European shares are set to
stabilise somewhat this morning, with spreadbetters pointing to slight gains at the open. 
    Sentiment however remains fragile with shares in Asia falling the most in a week amid little
signs that the dispute between Washington and Beijing could come to an end.
    "Escalating tensions between the US and China painted the equity markets in red, as
investors finally surrendered to the idea that the US-China talks may not lead to a deal at this
week’s high-level negotiations," says Ipek Ozkardeskaya, analyst at LCG.
    The pan-European STOXX 600 fell 1.1% yesterday.   
    Spreadbetters at IG expect London's FTSE to open 23 points higher at 7,166, Frankfurt's DAX
to open 28 points higher at 11,999, and Paris' CAC to open 21 points higher at 5,477.    
    (Danilo Masoni)
    *****  


($1 = 0.8194 pounds)

 (Reporting by Danilo Masoni, Joice Alves, Josephine Mason, Julien Ponthus and Thyagaraju
Adinarayan)