Live Markets: Opening snapshot: Risk-off and virtual roadshow

Pexip Holding ASA

14/05/2020 08:59

Welcome to the home for real-time coverage of European equity markets brought to you by Reuters
stocks reporters. You can share your thoughts Joice Alves (joice.alves@thomsonreuters.com) and
Julien Ponthus (julien.ponthus@thomsonreuters.com) in London and Stefano Rebaudo
(stefano.rebaudo@thomsonreuters.com) in Milan.

    OPENING SNAPSHOT: RISK-OFF AND VIRTUAL ROADSHOW (0759 GMT)
    European bourses are well in the red as fears COVID-19 is here to stay intensify after WHO
emergencies expert suggested the virus may become endemic. The pan-European index  .STOXX  is
falling around 1% with auto sector and travel and leisure leading losses again today. 
    In terms of single stocks, shares in TeamViewer fell sharply in early trade after private
equity firm Permira  PERM.UL  offered to sell around 25 million shares of the company. 
    Meantime, Britain's blue chips  .FTSE  are down 1.4% with British Airways' owner ICAG
falling almost 4% to the bottom of the index in a risk-off session. While Hargreaves Lansdown
 HRGV.L  shares jumped 8% after its Q1 trading update showed the British fund supermarket's
assets under administration was better than market expectations.
    Today is also the day when Europe completes its first ever IPO after an all-virtual
roadshow. Shares of Norway's Pexip Holding  PEXIP.OL  soared 54% as the video conferencing firm
made its stock market debut. 
    
    (Joice Alves)
    *****

    
    ON OUR RADAR: TEAMVIEWER, WIRECARD AND AUTO MAKERS (0655 GMT)
    European bourses are seen opening in the red as sentiment is pretty grim across global
markets on worries of a second wave of infections.
    But, let's start with positive results: Wirecard  WDIG.DE  Q1 was up 26% thanks to boost
from consumer business.
    Yet, a new day and a new batch of scrapped dividends: Clariant  CLN.S  is scrapping a
regular dividend as it hunkers down to survive the COVID-19 crisis, but it sticks to extra $1
bln payout from asset-sale proceeds.
    Fiat Chrysler  FCHA.MI  and Peugeot  PEUP.PA  also said last evening it would not pay
ordinary dividend for 2019 this year.
    Shares in TeamViewer seen collapsing after private equity firm Permira  PERM.UL  offered to
sell around 25 million shares of the company. 
    Pressure on Lloyd's of London, which said underwriting and investment losses for the global
non-life insurance sector could reach a record $203 billion.
    Meanwhile, Sanofi  SASY.PA  said last evening that it is working with European regulators to
speed up access to a potential coronavirus vaccine in Europe.
    
    (Joice Alves)
    ******
    
    
    STOXX 600: A MONTH-LONG BUMPY ROAD TO NOWHERE (0609 GMT) 
    Exactly a month ago, on Tuesday April 14th, the STOXX 600 ended the day up 0.6% at 333.89
points. 
    One month later, as we wait for the open, the pan-European index is at 333.93 points. 
    It sure has been a bumpy road in between but this road has led investors to nowhere. 
    Which actually isn't a bad thing considering the unprecedented economic damage the pandemic
already has and will inescapably inflict on the European economy.
    As you can see on the chart below, there's been three clear phases in the coronavirus crash.
    First the collapse: the STOXX 600 fell over 33% from its February 19th highs to hit a bottom
of 284 points at the close on March 16. 
    The index then went into 17% bear rally which ended on April 14.  
    While there's a solid belief that markets bottomed out about two months ago, there's also a
growing sense that investors may have somewhat jumped the gun on the V shaped recovery trade. 
    Anyhow, here's how the last 3 months panned out:        
       
    (Julien Ponthus) 
    *****
    
    
    MORNING CALL: NOT MUCH TO LOOK FORWARD TO (0534 GMT) 
    Sentiment is pretty grim across world markets as the fear that the pandemic is here to stay
grows a bit bigger every day.
    Let this sink in: "This virus may become just another endemic virus in our communities, and
this virus may never go away," WHO emergencies expert Mike Ryan told an online briefing
yesterday.  urn:newsml:reuters.com:*:nL8N2CV6UU
    Add that to Powell's warning that the U.S. economy faces an "extended period" of weak
economic growth and the overall picture ain't that pretty. 
    Talking about the central banker who just brushed off the idea of negative rates, let that
quote from Wednesday's briefing sink in too: "There is a sense, growing sense I think, that the
recovery may come more slowly than we would like". 
    No wonder then that Wall Street and Asia ended in the red and that European futures are
trading in negative territory, roughly between -0.5% and -1%, this morning.
    There just isn't much at the moment to look forward to. 
    Shorter term, there's a deluge of Q1 report that might help shape the trend of morning
trading, for the better or for the worse. 
    
    (Julien Ponthus) 
    *****
      
     
     
     
    
    


    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
qsdf    https://tmsnrt.rs/2yXUbyH
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Danilo Masoni, Joice Alves, Julien Ponthus and Thyagaraju Adinarayan)