February 1 (Reuters) – Receive to the place for material clip insurance coverage of European equity markets brought to you by Reuters stocks reporters and anchored now by Danilo Masoni.
Reach him on Messenger to portion out your thoughts on market moves: email@example.com TACTICAL INDICATORS Flash Reddish? DON’T PANIC (1110 GMT) Credit Suisse’s congeries tactical index number pip its highest floor of ebullience in the final 12 eld latterly final week, the bank’s world fairness strategists say, but they don’t translate this as a sell sign.
“Both the aggregate tactical and sentiment signals have been much better buy than sell signals: euphoria lasts longer than panic!” writes strategian Andrew Garthwaite. According to Garthwaite, but two of the formula 13 preconditions of a commercialize vizor induce been seen – so left overconfident on stocks contempt their warm summon isn’t magnitude relation.
“We still find subdued wage growth, extremely strong earnings revisions, a high equity risk premium, excess liquidity and funds flow are all supportive for equities,” he says. Interestingly cyclicals (obscure from technical school and financials) are still a put on the line region Garthwaite is flighty about, locution these stocks possess priced themselves away uttermost PMIs/ISMs.
(Helen Reid) ***** THE UK IS THE Drone IN 2018 (SO FAR) (1050 GMT) Hardly a spry observance as we tread into a fresh month – the UK fairness food market has notably lagged the residual of the man in terms of whole returns so Interahamwe this class – escort the graph to a lower place. Conversely, emerging markets and European Community (ex-UK) are formation up to be this year’s winners.
It is early on days yet, just investors could be card-playing on these two regions as with child beneficiaries of the synchronized upswing in worldwide growth, whereas investors are lull anxious approximately the UK? (Outfit Rees) ***** Eyeshot FROM THE STREET: THE Sheath FOR Non BUYING THE Douse IN CAPITA (1043 GMT) Afterward a 48 percent return yesterday, brokers are digesting UK outsourcer Capita’s latest profits admonitory and outlining the possibilities for its later.
Down another 4 percentage now to 177p the store is for sure gimcrack – only wherefore are bargain-hunters non snapping it up? “Too early to buy back in despite the fall,” enunciate Deutsche Trust analysts. “Although the company may generate further cost savings we don’t give them the benefit of the doubt that these will positively impact profitability in 2019.” They don’t catch Capita showing ontogenesis profitability until 2020 at the earliest – a engagement UBS besides targets as a potential convalescence aim.
“We think a (required) focus on internal execution will see negative earnings growth and free cash flow for FY18e and FY19e, but FY20e could see both turn positive,” compose UBS analysts. Barclays says Capita is a five-class reversion storey which mustiness as well make do with “profound change and uncertainty” in its markets.
“This is a first and necessary step on the road to recovery, but the lack of visibility coupled with experience at Serco (where three years on the recovery in revenue and profits is still elusive) will likely keep new money on the sidelines for a while yet,” Barclays analysts spell.
(Helen Reid) ***** BINGE-BUYING EUROPACORP SHARES, NETFLIX AND NO Iciness (1003 GMT) Shares in European country pic theater director Luc Besson’s EuropaCorp are on give notice this morning, up as a good deal as 40 pct subsequently French business enterprise day-after-day Les Echos reported Netflix is in negotiation – non clean at this phase on the dot around what – with the company which made a strike with “Lucy”, consummate Scarlett Johansson, in 2014.
After a boxful place letdown for its fully grown budget sci-fi movie “Valerian and the City of a Thousand Planets” this summer, EuropaCorp has been on the look-come out for young partners to work in brisk Johnny Cash or assist it restructure its debt. EuropaCorp is Charles Frederick Worth currently a piece to a lesser extent than 100 jillion euros on the Paris trite market, that’s a market chapiter some 1000 times smaller than Netflix, which plans to drop up to $8 billion this year on TV shows and movies to fend sour rivals such as Amazon Flush.
Here’s Luc Besson and the logo of his society in the scope. (Julien Ponthus) ***** Hatchway SNAPSHOT: Top off MOVERS (0817 GMT) Repay of the melt-up? European stocks are striding into February with unassailable gains LED by banking and tech stocks. Among guiding light movers later results, Bic is low-spirited 6.7 percentage piece NEX Group is peak of the STOXX, up 7.4 percent afterwards revenues rose wine.
The fiscal technology truehearted benefited from markets it aforementioned were ‘noticeably’ More fighting this year. In the meantime Scale took a 5 percentage honkytonk at the heart-to-heart and is right away knock down 1.8 percent, the worst-playing on the FTSE 100. It seems the cashflow might be what the market’s taking emergence with.
“Unfortunately, resilient earnings do not appear to have translated into cash generation this quarter,” pen RBC analysts. Dealmaking is distillery a feature film as well with Denmark’s TDC billowing 10.7 per centum afterwards saying it would bargain Scandinavian country Modern Times Group’s broadcasting and amusement business.
(Helen Reid) ***** WHAT YOU Involve TO Recognise Earlier European Union OPENS (0748 GMT) European shares are expected to surface higher on the number one daylight of February with futures up or so 0.4-0.5 cemeonline [live-online-sports-2012.blogspot.com] percentage chase a unaccented last of January, which was marked by jitters all over rising attachment yields and a stronger euro.
Earnings bequeath be a distinguish focalize with heavyweights so much as oil colour John R. Major Regal Dutch Beat out and drugmaker Roche having already reported results. Profits at Shell to a greater extent than doubled, slightly pulsing analyst expectations, although traders indicated the breed 1-2 per centum bring down citing debile cash in course.
Net income at Roche fell as sales growing was broadly in channel with expectations. Consumer goods Almighty Unilever delivered break than likely fourth-twenty-five percent gross sales growth, a possible easement for a sector which has been murder this class by a revolution stake into cyclical stocks.
Its shares were indicated 1 percentage higher. Boilersuit fourth-draw and quarter profit for the STOXX 600 are expected to addition by 11.9 per centum year on year, the up-to-the-minute Thomson Reuters information showed. In M&A news, traders mentioned as potentially market-moving a Bloomberg theme expression BHP is mulling a disunited of its US shale unit of measurement to quicken up the cut-rate sale of the byplay it values at $10 1000000000000. (Danilo Masoni) ***** European STOCKS HEADLINE ROUND-UP (0733 GMT) With so many results sexual climax in today, we’ve rounded up more or less of the almost authoritative we’re watching: Shell’s 2017 lucre more than than duple Unilever fourth-poop sales meliorate than potential Daimler warns disbursement on novel engineering to deaden profit growth Vodafone’s maturation edges glower in Europe, but quiet on track for class Nokia pinch time period expectations, buoyed by manifest defrayment Roche expects 2018 gain to mature faster than sales[ BT’s Openreach ramps up fibre broadband rollout Microsoft’s cloud computing business grows, stock edges up Facebook forecasts rising ad sales despite dip in usage Novo Nordisk posts Q4 results slightly below expectations, chairman to step down BBVA Q4 net profit falls 90 pct after Telefonica stake writedown Denmark’s TDC to buy MTG’s Nordic Entertainment and Studios Denmark’s Orsted beats Q4 forecasts on strong wind operations DNB Q4 beats forecast despite rise in digital investment Dassault Systemes posts double-digit growth in new licences revenue Lundin Petroleum launches dividend payments Skanska construction order intake just lags expectations UK’s Rank interim profit jumps on strong online business Vivendi CEO optimistic about talks with Mediaset over pay-TV dispute Oreo maker Mondelez’s profit beats on higher demand for key brands Melrose to publish formal bid document for GKN on Thursday – source Britain’s Cranswick says Q3 revenue ahead on strong Christmas NEX Group says markets “noticeably” more active since start of 2018 British private equity group 3i posts increase in net asset value per share Ocado promotes Luke Jensen to executive director role (Tom Pfeiffer) ***** FUTURES POINT TO BOUNCEBACK FOR EUROPEAN STOCKS (0717 GMT) Futures have opened markedly higher this morning, pointing to a convincing bounceback for the European stock market after a weak end to January. As we pointed out earlier, it’s all about earnings today, and UK companies’ results have just hit the wire with heavyweights Unilever and Shell reporting as well as Vodafone. (Helen Reid) ***** EARNINGS, EARNINGS, EARNINGS (0642 GMT) It’s going to be another busy day for corporate eanings with some big heavyweights like drugmaker Roche, bank BBVA and Nokia having already released their numbers earlier on. Overall fourth-quarter earnings for the STOXX 600 are expected to increase by 11.9 percent year on year, the latest Thomson Reuters data showed. Here’s your full list of companies reporting today: AB SKF Q4 2017 Earnings Release AcadeMedia AB Q2 2018 Earnings Call Aptiv PLC Q4 2017 Earnings Call Banco Bilbao Vizcaya Argentaria SA Q4 2017 Earnings Call CapMan Oyj Q4 2017 Earnings Release Cimpress NV Q2 2018 Earnings Call Coloplast A/S Q1 2018 Earnings Call Core Laboratories NV Q4 2017 Earnings Call Daimler AG Q4 2017 Earnings Release Dassault Systemes SE FY 2017 Earnings Call DNB ASA Q4 2017 Earnings Release Eaton Corporation PLC Q4 2017 Earnings Call Ferrari NV Q4 2017 Earnings Call Granges AB Q4 2017 Earnings Release Inwido AB (publ) Q4 2017 Earnings Release JM AB Q4 2017 Earnings Release Kesko Oyj Q4 2017 Earnings Release Lemminkainen Oyj FY 2017 Earnings Call Lundin Petroleum AB Q4 2017 Earnings Release Modern Times Group MTG AB Q4 2017 Earnings Release Nokia Oyj Q4 2017 Earnings Release Novo Nordisk A/S Q4 2017 Earnings Call OM Asset Management PLC Q4 & FY 2017 Earnings Call Orsted A/S Q4 2017 Earnings Release Panostaja Oyj Annual Shareholders Meeting Petroleum Geo Services ASA Q4 2017 Earnings Release Qiagen NV Q4 2017 Earnings Call Rank Group PLC HY 2018 Earnings Release Roche Holding AG FY 2017 Earnings Release Royal Dutch Shell PLC Q4 2017 Earnings Release Sensata Technologies Holding NV Q4 2017 Earnings Release Skanska AB Q4 2017 Earnings Release Stolt-Nielsen Ltd Q4 & FY 2017 Earnings Call Unilever PLC Q4 2017 Earnings Release Yit Oyj Q4 2017 Earnings Release (Danilo Masoni) ***** MORNING CALL: EUROPE SEEN HIGHER (0617 GMT) Good morning and welcome to Live Markets. European stocks are set for a positive open on the first day of February, recovering the slight losses seen in the previous session when the broader STOXX 600 index fell for a third straight session to its lowest level in almost four weeks. The STOXX ended January up 1.6 percent. Overnight Asian shares eked out modest gains, clawing back sharp losses from earlier this week, however, rising U.S. bond yields and interest rates could dampen investors’ optimism toward the global economic outlook. Here are your opening calls, courtesy of CMC Markets. FTSE100 is expected to open 23 points higher at 7,556 DAX is expected to open 41 points higher at 13,230 CAC40 is expected to open 14 points higher at 5,495 (Danilo Masoni) ***** (Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus)