February 7, 2018 / 7:59 AM / in 6 months

LIVE MARKETS-What you need to know before Europe's open

    * European shares seen snapping 7-day losing streak
    * STOXX 600 7.7 percent below Jan peak
    * Wall Street rebounded on Tuesday but futures weak

    Feb 7 (Reuters) - 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 YOU NEED TO KNOW BEFORE EUROPE'S OPEN (0746 GMT)
    European shares are expected to break a seven-day losing streak at the open with futures up
0.6-1.2 percent. Although traders don’t rule out further turbulence ahead, the focus is likely
to turn again to the thick agenda of earnings updates. 
    There is a good number of banks reporting results including ABN Amro and Raiffeisen which
have already released market-beating figures, while the results from GlaxoSmithKline later in
the day will put the healthcare sector in the spotlight.
    According to a Thomson Reuters data, 48.2 percent of the STOXX 600 companies that reported
results so far have exceeding earnings estimates. That's below the 50 percent beat seen in a
typical quarter. The picture looks much better in the U.S. where 78 percent of the S&P 500
companies that reported so far are above expectations. STOXX 600 Q4 earnings are seen up 11
percent, while S&P 500 earnings are seen up 14 percent.
    For a round up of market moving headlines, scroll down for an earlier post.
    (Danilo Masoni)
    *****        
    
    CURB YOUR ENTHUSIASM, U.S. FUTURES APPEAR TO SAY (0730 GMT) 
    While Europe seemed set to bounce back thanks to Wall Street's overnight rebound, investors
are keeping an anxious eye on futures for the S&P 500 and the Dow, which have somehow dampened
the mood in Asia. 
    Have a look at the last few hours of trading on S&P 500 futures:  
 
    (Julien Ponthus) 
    *****    
     
    EARLY MORNING EUROPEAN HEADLINE ROUND-UP (0715 GMT)
    As some calm looks set to return to the market today, corporate news is again in the
spotlight with some earnings beats from Statoil, ABN Amro and Aker
possibly providing support. Also in focus is Tesco after the BBC reported that the
retailer is facing Britain's largest ever equal pay claim from women and a possible bill of up
to 4 billion pounds.
    Here's your early morning headline round-up with links to the full stories.
Rio Tinto full-year profit jumps 69 pct; announces $1 bln buyback
Statoil raises dividend, capex as oil sector picks up
Sanofi pins hopes on 2018 for growth after recent takeover deals
Tesco faces record 4 billion pound equal pay claim in Britain - BBC
ABN Amro keeps aim at high capital buffer after surge in Q4 profit
Hannover Re sees 2018 net profit of more than 1 bln euros
UniCredit completes sale of large bad loan portfolio
Carlsberg increases dividend, fourth quarter sales disappoint
Credit Suisse 'volatility' fund liquidated after market selloff
Delivery Hero Q4 revenue soars 51 pct
Osram Q1 core profit falls less than expected
Norway's Aker Solutions Q4 beats forecast, vows further cost cuts
Handelsbanken Q4 profit hit by loan losses, to pay extra dividend
Raiffeisen Q4 profit beats expectations helped by falling risk costs
Swisscom steps up cost cuts as competition grows
MEDIA-Vodafone may hang up on India's Indus Towers in $5 bln deal - Economic Times 
          
    (Danilo Masoni)
    *****
    
    DAX, FTSE, CAC FUTURES ON THE UP (0703 GMT)
    Futures on Europe's top stock benchmarks have opened in positive territory, up 0.4-1
percent, confirming earlier indications from spreadbetters for a rebound at the open following
seven days of losses in a row. Traders, however, don't rule out there could be further
turbulence ahead. Here's your snapshot:    
 
    (Danilo Masoni)
    *****    
    
    EUROPEAN EARNINGS: BEATS LAG TYPICAL QUARTER, BUT REVENUES AHEAD (0637 GMT)
    The latest Thomson Reuters Earnings Outlook report for the pan-European STOXX 600
index is out, showing how fourth-quarter earning beats so far are lagging the typical quarter,
while revenue beats are ahead. 
    As a result earnings growth forecasts for the quarter have been revised downwards.    
 
    Here in the key highlights there are more details: 
    * Fourth quarter earnings are expected to increase 11.0% from Q4 2016. Excluding the Energy
sector, earnings are expected to increase 7.9%.
    * Fourth quarter revenue is expected to increase 1.5% from Q4 2016. Excluding the Energy
sector, earnings are expected to increase 0.6%.
    * 85 companies in the STOXX 600 have reported earnings to date for Q4 2017. Of these, 48.2%
reported results exceeding analyst estimates. In a typical quarter 50% beat analyst EPS
estimates.
    * 89 companies in the STOXX 600 have reported revenue to date for Q4 2017. Of  these, 57.3%
reported revenue exceeding analyst estimates. In a typical quarter 54% beat analyst revenue
estimates.
    * During the week of Feb. 12, 33 STOXX 600 companies are expected to report quarterly
earnings. 
    (Danilo Masoni)
    *****

    MORNING CALL: AFTER 7 DAYS OF RED, EUROPEAN SHARES SEEN UP (0614 GMT) 
    Good morning and welcome to Live Markets. 
    After seven days of pain that pushed the STOXX 600 7.7 percent below the two-year
peak hit in January, shares in Europe are finally set to rise back following a rebound at Wall
Street in the previous session, although there could still be turbulent sessions ahead.   
     Asian share markets took back some of their earlier gains as investors were unnerved by a
drop in U.S. stock futures, underscoring lingering anxiety following steep losses in global
equities over the past few days.
   "Yesterday's recovery in US markets is likely to result in a decent rebound for stock markets
in Europe this morning after yesterday's weak session, however it remains too early for the
moment to suggest that this might be the end to this particular bout of weakness, given that we
still remain below the levels of where we closed Monday’s trading session," say Michael Hewson,
Chief Market Analyst at CMC Markets UK.
    Here are your opening calls: 
    FTSE100 is expected to open 44 points higher at 7,185
    DAX is expected to open 138 points higher at 12,530
    CAC40 is expected to open 69 points higher at 5,230
    (Danilo Masoni)
    *****

    
 (Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus)
  
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