Live Markets: Opening snapshot: PSA and Fiat Chrysler steal the show
30/10/2019 08:29
* European shares open little changed before Fed meeting
* Fiat Chrysler and PSA confirm tie-up talks, stocks rally
* Bank earnings in focus: DB, CS, StanChart, Santander
* Fed seen cutting rates, focus on policy outlook
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: PSA AND FIAT CHRYSLER STEALS THE SHOW (0828 GMT)
It's the main headline of the day so it's only fair in a way that PSA PEUP.PA and Fiat
Chrysler FCHA.MI get the spotlight this morning with their shares surging 8.7% and 7.5%
respectively.
The French carmaker is the top performer on its home turf and same goes for its Italian
would-be match in Milan. The brides are well in the race for the top spot on the STOXX 600
.STOXX .
Although both stocks are on fire, they will struggle to catch up Germany's Fuchs Petrolub
FPEG_p.DE which jumped about 12% on the back of better-than-expected earnings.
It's not only fun and joy in the sector though with Renault RENA.PA , PSA's arch rival,
falling 4% as its shareholders are probably getting a big blast of Fomo.
What could also curb the enthusiasm for the sector is Pirelli's PIRC.MI 5.5 percent fall
after the tyre maker cut its guidance urn:newsml:reuters.com:*:nL8N27E6E4.
It seems to a good day for France Inc with L'Oreal OREP.PA up 6 percent as it defies the
perceived gloom of the Chinese market. The French benchmark is up 0.2%.
Plenty of action in the banking sector with Deutsche Bank DBKGn.DE posting the worst
performance of the DAX with a 4% fall after yet another quarterly loss.
Bayer BAYGn.DE on the other hand took the lead for German blue chips, rising 2.5% on solid
results.
Because the overall market has no clear directional trend yet, here's a look at the top
movers on the STOXX 600 instead:
(Julien Ponthus)
*****
ON THE RADAR: CORPORATE TOP NEWS OVERLOAD (0736 GMT)
Futures have opened sideways with no clear directional trend in Europe.
What's clear however is that there is such a huge flow of corporate news that it will be
difficult to be sure not to have missed anything before the open and the market, which tends to
be quite unforgiving these days, gives its verdict.
Before getting in the Q3 action, let's first flag out a major piece of news in the auto
industry with Fiat Chrysler FCHA.MI confirming talks with French rival PSA PEUP.PA for a
potential tie-up. urn:newsml:reuters.com:*:nL3N27E4D0
News of the tentative merger comes as Germany's Volkswagen VOWG_p.DE lowered its full-year
outlook for vehicle deliveries, warning of slowing demand. urn:newsml:reuters.com:*:nL8N27F1IC
Lots to take in the banking industry too:
Deutsche Bank DBKGn.DE reports 832 million euro Q3 loss on restructuring urn:newsml:reuters.com:*:nL8N27F12K
StanChart STAN.L flags growth, interest rate headwinds after Q3 profit beat urn:newsml:reuters.com:*:nL3N27F158
Credit Suisse CSGN.S doubles Q3 net profit urn:newsml:reuters.com:*:nL8N27F188
Santander SAN.MC Q3 net profit falls 75% as UK charges offset Brazil strength urn:newsml:reuters.com:*:nL8N27F0ST
But there are heavyweights across all sectors making headlines this morning so in no
particular order, he's the rest of the top news: click here to get it on Eikon: TOP/EQE
Airbus AIR.PA cuts delivery goal on Hamburg plant snags
Record Q3 output boosts Total's TOTF.PA cash flow, low prices hit profit
Lower oil and gas prices weigh on OMV OMVV.VI Q3 profit
Bayer BAYGn.DE says number of glyphosate plaintiffs jumps to 42,700
Clariant CLN.S Q3 profit and sales fall as economic climate worsens
Angry Birds maker Rovio's ROVIO.HE Q3 profit halves year-on-year
EssilorLuxottica ESLX.PA confirms 2019 targets after stronger Q3 sales
Britain's Next NXT.L keeps full year guidance after Q3 sales rise
(Julien Ponthus)
*****
FED WATCHING, Q3 GALORE AND THE XMAS BREXIT ELECTION (0542 GMT)
Christmas will come early to the UK this year, precisely on December 12 in the form of a UK
general election.
It's far from certain however that the polls will deliver anything on Boris Johnson or
Jeremy Corbyn's wish list but less than 48 hours ahead of Halloween, investors aren't spooked by
the prospect of the process going all wrong.
The pound is roughly stable at 1.2870 and according to IG, financial spreadbetters expect
London's FTSE to open just 7 points lower, so nothing dramatic there indeed.
Frankfurt's DAX is also seen retreating slightly at the open by 25 points but Paris is
should be flat.
With Wall Street on and off record highs, the Fed's meeting today and the expected interest
rate cut will be key, especially after it emerged that Washington and Beijing may not complete
their interim trade agreement in time to sign in Chile next month.
Amid all that news let us not forget that we are in for one of the busiest day of the Q3
season with a flurry of results such as Bayer BAYGn.DE , GlaxoSmithKline GSK.L , Suez
SEVI.PA or Total TOTF.PA .
Last but not least, there will also be a deluge of indicators from the euro zone which
should shed more light on whether there is light to be seen at the end of the macro gloom
tunnel.
(Julien Ponthus)
*****
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(Reporting by Danilo Masoni, Joice Alves, Julien Ponthus and Thyagaraju Adinarayan)