February 16, 2018 / 8:26 AM / 4 months ago

LIVE MARKETS-Opening snapshot: European shares gallop ahead

    * European shares extend bounce
    * In Asia shares rise for fifth straight day
    * Earnings in focus

    Feb 16 (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
 
    
    OPENING SNAPSHOT: EUROPEAN SHARES GALLOP AHEAD (0820 GMT)
    It looks like investors have turned their attention from bond yields and rising inflation to
the strong earnings picture in Europe, as the STOXX 600 powers ahead this morning thanks to a
slew of well-received company results.
    Rounding up a couple of early standout performers, Dutch oil storage company Vopak
, French satellite operator Eutelsat and utility EDF are all up 4 to
12 percent after their updates.
    Swedish defence firm Saab is down around 11 percent, however, after proposing a
lower than expected dividend. Danone's shares are also up only a modest 0.7 percent
following its results for 2017.
    Here's your opening snapshot:
 
    (Kit Rees)
    *****
    
    WHAT'S ON OUR RADAR BEFORE THE EUROPEAN OPEN (0749 GMT)
    European shares are expected to open higher and snap a three-week losing streak on Friday as
volatility calms down and investors put aside worries over inflation that sparked a heavy
sell-off in global equities earlier in the month. 
    Futures on top European country indexes were up 0.4-0.6 percent, while the pan-European
STOXX 600 benchmark was up more than 2 percent so far this week. The STOXX however is
still down around 7 percent from the 2 1/2 year peak hit in January.    
 
    According to the latest data from Thomson Reuters, European fourth quarter earnings are seen
rising 14.6 percent. That's a big upwards revision from last week's 11 percent growth forecast
and follows 15 weeks marred by a string of downgrades.
    The revision has brought Europe to just below the 14.8 percent growth rate expected for the
S&P 500, although "earnings beats" in the U.S. stand at 78 percent vs 50 percent in Europe.
    For market moving headlines see the couple of posts below.
    (Danilo Masoni)    
    *****
    
    CONSUMER STAPLES: FOOD FOR THOUGHT (0741 GMT)
    Yesterday we had full-year results from Nestle's, which dropped after forecasting
only modest organic sales growth, whereas Danone has come out today saying that it is
aiming for further sales and profit growth in 2018.
    Analysts are saying that Danone's full-year results have come in slightly ahead of
consensus, but there is still work to be done.
    "FY18 guidance is for DD EPS growth, which implies confidence on margins but not necessarily
on the top line. We see good progress being made here, but ongoing negative momentum in Fresh
Dairy testifies to the continuing challenges ahead," analysts at Jefferies say in a note.
    It has been a little difficult of late separating stock-specific weakness among consumer
staples from the broader concerns around the impact of rising bond yields on the sector, but as
you can see from the chart below their valuation premium has come down somewhat this year.    
 
    (Kit Rees)
    *****
    
    DAX, CAC, FTSE FUTURES EDGE UP (0708 GMT)
    European stock index futures have opened with gains of around 0.3 percent, confirming
earlier indications from financial spreadbetters.     
 
    (Danilo Masoni)
    *****
    
    EARNINGS DOMINATE EUROPEAN EARLY MORNING HEADLINES (0648 GMT)
    We have earnings from top companies like Allianz, Renault and Eni
 this morning but also some fresh dealmaking activity with Roche agreeing to buy
U.S. cancer data company Flatiron Health for $1.9 billion. Here are your headlines:      
Allianz Q4 net profit down 22 percent on U.S. tax hit, weak dollar
Renault posts record earnings, strengthening Ghosn's hand
ANALYSIS-As mining investors push caution, Glencore differs from rivals
Roche to buy Flatiron Health for $1.9 bln to expand cancer care portfolio
Air France-KLM positive on ticket prices, takes pensions charge
Volatility holds key to bank revenue revival from 2017 slump -survey
Swiss elevator maker Schindler reports in-line 2017 results on stable China demand
BHP Billiton to drill two new deepwater wells in Trion this year
Vopak 2017 earnings fall, but slightly beat expectations
Food group Danone eyes further sales and profit growth for 2018
Lower nuclear output hits EDF 2017 earnings, 2018 rebound seen
Auto parts group Faurecia slightly raises 2018 margin goal as profit climbs
Eni releases Q4 update, confirms dividend for 2017         
China's HNA Group trims stake in Deutsche Bank to around 8.8 pct
Shareholders sell $424 million worth of Scout24 shares
ISS recommends Booker investors vote against Tesco deal   
Portugal regulator to further investigate Altice-Media Capital deal
Bollore FY Revenue Up EUR 18.33‍​ Billion
Vivendi's annual profit rises on strong music revenue   
Italy Antitrust probes telecoms companies for billing practices
    (Danilo Masoni)
    *****
    MORNING CALL: BOUNCE SET TO CONTINUE IN EUROPE (0615 GMT) 
    Good morning and welcome to Live Markets. 
    European shares are seen opening higher today following two sessions of gains as worries
over inflation and spiking bond yields that caused a turbulent start of the month ease.  
     Asian shares rose for a fifth straight day as investor confidence slowly returns after a
sharp sell-off earlier in the month, but the dollar continued its descent, hitting a three-year
low against a basket of major currencies.  
    "After two successive weeks of sizeable losses for equity markets there was always the
possibility that we’d see a bit of a rebound this week, and so it has proved, though once again
the extent of the rebound has been led by US markets, while markets in Europe have lagged behind
somewhat," writes Michael Hewson, Chief Market Analyst at CMC Markets UK.
    Here are his opening calls:
    FTSE100  is expected to open 29 points higher at 7,263
    DAX is expected to open 46 points higher at 12,392
    CAC40 is expected to open 13 points higher at 5,235
    (Danilo Masoni)
    *****

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