Live Markets: Spain slips after election, Italian banks get rating boost
29/04/2019 08:46
* European shares open little changed
* Spanish stocks lag behind
* Spain's Socialists on course to regain power, no majority
* Italian banks lifted as S&P affirms sovereign rating
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stocks reporters and anchored today by Danilo Masoni. Reach him on Messenger to share your
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SPAIN SLIPS AFTER ELECTION, ITALIAN BANKS GET RATING BOOST (0740 GMT)
European shares are off to a muted start this morning as investors scour a raft of earnings
updates and digest the outcome of the Spanish general election that delivered no outright
majority and S&P Global's decision to affirm Italy's sovereign rating.
The pan-regional STOXX 600 benchmark was trading around parity, while Madrid's top share
index .IBEX was a clear underperformer, down 0.5 percent, led lower by losses among utility
stocks - the worst performing sector also in Europe.
"There is no majority in Spain and that's weighing on the market even though it was
expected," says a trader at a European bank.
Meanwhile the Italian index .FTMIB is outperforming with banks .FTIT8300 rising more
than 1 percent as Italian government bonds rallied following S&P Global's rating decisions.
Gains in Italian banks and a well-received earnings update from Spanish lender Bankia
BKIA.MC helped make banks the top sectoral gainer in Europe, although Deutsche Bank DBKGn.DE
fell slightly after a couple of downbeat rating moves.
DB's Chairman Paul Achleitner told the Financial Times that Germany's largest lender did not
need to fundamentally overhaul its investment bank after attempts to create a German champion
with Commerzbank CBKG.DE failed last week. urn:newsml:reuters.com:*:nL5N22B0KE
Among top movers on the STOXX are Hexpol HPOLb.ST , down 7.6 percent after its results,
while a SEB upgrade to buy boosted Dometic DOMETIC.ST shares to the top of the index.
Here's your opening snapshot:
(Danilo Masoni)
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WHAT'S ON OUR RADAR AT THE OPEN (0658 GMT)
European shares are expected to open little changed with Madrid seen lagging a tad behind
after Socialist Prime Minister Pedro Sanchez looked set to regain power after Sunday's general
election, even though the creation of a new government will likely take months and its
composition is still not clear.
Futures on main European indexes trading between flat and a gain of 0.1 percent, as
investors prepare for another heavy week of earnings updates, while Spain's IBEX futures are
down 0.1 percent.
Oil stocks could be in the spotlight as M&A looks to be heating up in the U.S. after sources
told Reuters that Anadarko Petroleum, which agreed this month to sell itself to Chevron Corp for
$33 billion, decided on Sunday to begin negotiations to sell itself to Occidental Petroleum
instead. Falling crude oil prices though could weigh.
Eyes also on GAM Holding after a Reuters report said a whistle blower at the Swiss asset
manager who alerted UK financial regulators last year did so over concerns about the purchase of
more than half a billion pounds of bonds from commodities tycoon Sanjeev Gupta. urn:newsml:reuters.com:*:nL5N2290NT
In the auto sector, Renault is once again in focus after a source told Reuters that the
French car maker will propose a plan to create a joint holding company that would give it and
Japanese partner Nissan equal footing. Meanwhile France raised its stake in car parts group
Valeo to just above 7 percent as it seeks to protect leading companies from activist investors.
Italian banks could see some relief after S&P affirmed Italy's sovereign ratings. Still in
banks, Commerzbank boss Martin Zielke rebutted speculation the bank may be sold abroad after it
abandoned six weeks of merger talks with peer Deutsche Bank last week, while Deutsche chairman
said in an interview that Germany's largest lender does not need to fundamentally overhaul its
investment bank after the tie-up talks failed.
Bankia shares were indicated up 1-2 percent after its net income beat expectations.
(Danilo Masoni)
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IBEX FUTURES LAG BEHIND, EYES ON RESULTS, OIL STOCKS, GAM (0637 GMT)
European stock index futures have opened up slightly with the Spanish IBEX MFXIc1 lagging
slightly behind, down 0.1 percent, after Socialist Prime Minister Pedro Sanchez looked set to
regain power after Sunday's general election.
Sanchez portrayed the result as a morale booster for the European Union, but months of talks
to form a government were seen as likely. urn:newsml:reuters.com:*:nL5N22A04H
Futures on other country benchmarks were trading between flat and a rise of 0.1 percent as
investors look at a number of earnings updates. So far this morning we've seen the numbers from
Dutch health technology company Philips, whose Q1 core profit missed estimates, while Spanish
lender Bankia Q1 net profit dropped.
Oil stocks could be in the spotlight as M&A looks to be heating up across the pond after
sources told Reuters that Anadarko Petroleum, which agreed this month to sell itself to Chevron
Corp for $33 billion, decided on Sunday to begin negotiations to sell itself to Occidental
Petroleum instead.
Eyes also on GAM Holding after a Reuters report said a whistle blower at the Swiss asset
manager who alerted UK financial regulators last year did so over concerns about the purchase of
more than half a billion pounds of bonds from commodities tycoon Sanjeev Gupta. urn:newsml:reuters.com:*:nL5N2290NT
In the auto sector, Renault is once again in focus after a source told Reuters that the
French car maker will propose a plan to create a joint holding company that would give it and
Japanese partner Nissan 7201.T equal footing.
Italian banks could see some relief after S&P affirmed Italy's sovereign ratings.
Here's your full headlines round up:
Anadarko to pursue deal talks with Occidental Petroleum-sources urn:newsml:reuters.com:*:nL1N22B01O
GAM whistle blower concerns focused on bonds sold by metals tycoon urn:newsml:reuters.com:*:nL5N2290NT
Renault to propose joint holding company with Nissan -source urn:newsml:reuters.com:*:nL3N22820P
Bayer says non-executive directors back management board urn:newsml:reuters.com:*:nFWN2280RQ
Vodafone kicks off search for successor to chairman Gerard Kleisterlee- the Sunday Times
urn:newsml:reuters.com:*:nL3N22A00G
Britain's SSE approaches firms over deal to shed retail arm - Sky News urn:newsml:reuters.com:*:nL5N2290EL
Airline SAS cancels 1,200 more flights as pilot strike drags on urn:newsml:reuters.com:*:nL5N22A0A5
Warren Buffett ready to buy in Britain regardless of Brexit- FT urn:newsml:reuters.com:*:nL3N2284KF
S&P affirms Italy 'Bbb/A-2' ratings with Outlook Negative urn:newsml:reuters.com:*:nFWN2280RK
Intel puts modem business up for sale, held talks with Apple - WSJ urn:newsml:reuters.com:*:nL3N22849J
Fashion group SMCP posts rise in Q1 sales urn:newsml:reuters.com:*:nFWN22A01D
Covestro Q1 adj EBITDA down 58 pct on lower prices urn:newsml:reuters.com:*:nS8N21Q017
Spain's Bankia Q1 net profit falls 10.8 pct on lower trading income urn:newsml:reuters.com:*:nL5N2275LB
Deutsche Bank chair against strategy change at investment bank urn:newsml:reuters.com:*:nL5N22B0EV
Philips Q1 core profit misses estimates on bleak sales urn:newsml:reuters.com:*:nL5N22B0F5
Environmental activists climb aboard Equinor drilling rig in Arctic urn:newsml:reuters.com:*:nO9N21F00C
Tate & Lyle scouts for acquisitions to build its ingredients arm - FT urn:newsml:reuters.com:*:nL3N22B0SO
Boeing CEO faces shareholders for first time since 737 MAX crashes urn:newsml:reuters.com:*:nL1N22909I
Swedish ex-PM Persson proposed as chairman at crisis-hit Swedbank urn:newsml:reuters.com:*:nL5N22A0R7
Italy's deputy PM says Alitalia bid deadline is Tuesday urn:newsml:reuters.com:*:nL5N22A0JZ
Chinese electric car maker BYD's Q1 profit up 632 pct, sees H1 profit up urn:newsml:reuters.com:*:nL3N2280RO
Oil major Total targets expansion in retail power market urn:newsml:reuters.com:*:nL5N2286KH
China urges UK not to discriminate against Huawei in 5G development urn:newsml:reuters.com:*:nL5N22A06B
Activist investor Bramson may get bloody nose at Barclays AGM urn:newsml:reuters.com:*:nL5N228521
(Danilo Masoni)
*****
EUROPEAN STOCKS SEEN LITTLE CHANGED (0525 GM)
European shares are expected to open little changed as investors prepare for another week
full of earnings updates and assess the outcome of the Spanish general election where Prime
Minister Pedro Sanchez looks set to regain power after his Socialists overcame a historic
challenge by right-wing nationalists. urn:newsml:reuters.com:*:nL5N22A04H
Financial spreadbetters at IG expect London's FTSE to open 11 points higher at 7,439,
Frankfurt's DAX to open 8 points higher at 12,323, and Paris' CAC to open flat at 5,569.
Over in Asia, shares rebounded after strong U.S. Q1 economic growth boosted the S&P 500
index to a record high on Friday, and the recovery was also supported by data showing profits at
Chinese industrial firms grew for the first time in four months. urn:newsml:reuters.com:*:nL5N22B077
(Danilo Masoni)
*****
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((Danilo.Masoni@TR.com; +39-02-66129734; Reuters Messaging:
danilo.masoni.thomsonreuters.com@reuters.net; On Twitter https://twitter.com/damasoni))