Live Markets: Opening snapshot: bouncing back
24/09/2019 08:44
* European shares open higher after drop
* Eyes on German Ifo, UK Supreme Court decision
* In Asia, shares inch up on trade hopes
* US Treasury's Mnuchin: trade talks to resume next month
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
OPENING SNAPSHOT: BOUNCING BACK (0741 GMT)
European shares are off to a positive start as they partly recover from yesterday's sell-off
on renewed recession fears with gains across most sectors pushing the STOXX 600 .STOXX
regional benchmark up 0.3% in early deals.
Defensive healthcare and rate-sensitive financials are providing the biggest uplift to the
STOXX, while travel & leisure stocks are rising for a second day as investors eye short-term
benefits from the collapse of Thomas Cook.
Autos .SXAP are a weak spot, down 0.4% with shares in Renault RENA.PA , Daimler
DAIGn.DE and Porsche PSHG_p.DE leading the pullback, while shares in truck and trailer
components maker SAF Holland SFQN.DE tanked 18% after a profit warning, which has further
highlighted the challenges facing the sector.
London's FTSE 250 .FTMC index is lagging the rest of the market, down 0.2% with
industrials and financial stocks leading the charge lower. Industrial machinery company Weir
WEIR.L was down 4.1% at a 3-1/2-week low after a broker downgrade and the SAF Holland warning
and accounted a third of the drop on the index.
Here's your opening snapshot:
(Danilo Masoni)
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WHAT'S ON OUR RADAR (0657 GMT)
European shares are expected to rise slightly at the open, partly recovering from the
sell-off yesterday when disappointing business surveys deepened worries over a possible
recession and fuelled talk that more stimulus may be needed.
Those worries will be tested again today with the release of Germany's Ifo numbers, while
the pound-sensitive FTSE could see some action following today's Supreme Court's decision on
Johnson's suspension of parliament.
Futures on Europe's main stock indexes are trading up around 0.1-0.2%.
On the corporate front, a profit warning from truck and trailer components maker SAF Holland
SFQN.DE has further highlighted the challenges facing the sector. Its shares are down 14.3% in
premarket trade after the German firm said it could no longer achieve its 2020 outlook, citing
"continued deterioration in overall economic conditions - particularly in Europe, China and
India".
As repatriations of thousands of tourists continue following the collapse of UK travel group
Thomas Cook, more signs of stress are emerging with Slovenia-based Adria Airways saying it would
suspend all flights on Tuesday and Wednesday due to "unsecured access to fresh cash which the
airline needs for further flight operations".
TUI TUIGn.DE , whose shares rallied following the collapse of its top rival, confirmed its
2019 guidance of a fall of 26% in underlying core profits. Some traders expect TUI shares to
fall at the start, highlighting that longer term challenges remain despite the short-term relief
from Thomas Cook's demise.
In other debt-related woes, troubled British lender Metro Bank MTRO.L said it would not
proceed with a bond issue, blaming 'current market conditions'.
Elsewhere, AB InBev ABI.BR is seen opening up 1%, per one trader. The company raised about
$5 billion in a Hong Kong IPO of the brewer's Asia-Pacific unit after pricing it at the bottom
of a marketed range.
Chip makers will also be on the watch-list as shares in Apple rose overnight following some
relief on tariffs by the U.S. government.
Eyes also on Italian banks after Reuters reported that Italy will cut its target for
economic growth next year to around 0.6%.
Other stock movers: Aluminium maker Norsk Hydro aims to cut costs again; Italy looking at
M&A options for bank Monte deil Pas chi - official; Evoke, Takeda Enter Collaboration Across
Multiple Therapeutic Fields; Nord Awarded 110 MW Project In Turkey
Here's your full headlines roundup:
TUI says 2019/20 winter bookings in line with last year urn:newsml:reuters.com:*:nFWN26F035
EXCLUSIVE-Allianz, Nippon in race to buy Aviv's Asia units for up to $2.5 bln-sources
urn:newsml:reuters.com:*:nL3N26F12E
AB InBev Asia unit raises $5 bln in world's second-largest 2019 IPO urn:newsml:reuters.com:*:nL3N26F0DE
Aluminium maker Norsk Hydro aims to cut costs again urn:newsml:reuters.com:*:nL5N26F0LF
Software firm TeamViewer expected to price in upper half of range -bookrunner urn:newsml:reuters.com:*:nL5N26E5XK
UBS, Banco do Brasil to create investment banking venture in South America urn:newsml:reuters.com:*:nL2N26E1UM
MEDIA-Deutsche Bank top holder takes chairman search into own hand- Bloomberg urn:newsml:reuters.com:*:nL3N26E2Z6
Strains that sank Thomas Cook weigh on European airlines urn:newsml:reuters.com:*:nL5N26E23T
Slovenia's Adria Airways temporarily stops flying over debt urn:newsml:reuters.com:*:nL5N26F0P0
French energy group Total to accelerate dividend growth urn:newsml:reuters.com:*:nL5N26F121
Apple to make new Mac Pro PCs in U.S. after some tariff exemptions urn:newsml:reuters.com:*:nL3N26E1ED
Italy looking at M&A options for bank Monte deil Pas chi - official urn:newsml:reuters.com:*:nS8N25O02K
Metro Bank ditches debt issue, blaming 'market conditions' urn:newsml:reuters.com:*:nL5N26E5AV
Vivendi steps up legal fight after keeping Media set stake urn:newsml:reuters.com:*:nL5N26E1KE
Output down 80% at Elf's Cattie 4 reactor due to strike urn:newsml:reuters.com:*:nL5N26E1HY
BRIEF-Dassault Systems announces extension of CFIUS review process for Media acquisition
ECB fines Greece's Piraeus Bank for funding share buys urn:newsml:reuters.com:*:nF9N1XV02E
Irn-Bru maker A.G. Barr posts lower profit as higher prices dent sales urn:newsml:reuters.com:*:nL3N26F1P6
(Danilo Masoni)
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EUROPEAN SHARES SEEN BOUNCING BACK BEFORE GERMAN IFO (0534 GMT)
European shares are expected to bounce back at the open with the German economy still in
focus before the IFO numbers later today that follow disappointing PMI surveys that sent the DAX
tumbling 1% in the previous session to post its biggest one-day fall in around one month.
"Expectations for today's German IFO Business climate are for a slight improvement from
August's 94.3 to 94.5, however yesterday's flash PMI numbers do rather cast that optimism into
doubt," says Michael Hewson, analyst at CMC Markets.
The FTSE is also seen higher ahead of the Supreme Court's decision on Johnson's suspension
of parliament which could see the sterling rising if there is a verdict against the PM.
Spreadbetters at IG expect London's FTSE to open 24 points higher at 7,350, Frankfurt's DAX
to open 27 points higher at 12,369, and Paris' CAC to open 13 points higher at 5,644.
Over in Asia, shares ticked up after U.S. Treasury Secretary Steven Mnuchin said U.S.-China
trade talks will resume next month. urn:newsml:reuters.com:*:nL3N26F0KC
(Danilo Masoni)
*****
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(Reporting by Danilo Masoni, Josephine Mason and Thyagaraju Adinarayan)