November 15, 2018 / 8:33 AM / a month ago

LIVE MARKETS-Opening snapshot: Miners lead, autos lag

    * STOXX up 0.3 pct, STOXX50E up 0.6 pct
    * Hopes of trade war endgame buoy equities
    * China sent written response to U.S. trade reform demands
    * Mining sector leads, up 1.8 pct, autos down 0.4 pct

    Nov 15 - Welcome to the home for real time coverage of European equity markets brought to
you by Reuters stocks reporters and anchored today by Josephine Mason. Reach her on Messenger to
share your thoughts on market moves: josephine.mason.thomsonreuters.com@reuters.net
    
    
    OPENING SNAPSHOT: MINERS LEAD, AUTOS LAG (0831 GMT)
    A strong rebound in mining stocks is helping drive European stocks up this morning with the
STOXX up 0.4 percent and DAX up 0.7 percent. 
    Hopes that a trade war between China and the U.S. could be nearing endgame after China sent
a written response to U.S. trade reform demands are likely helping boost the mining sector
 up 1.8 percent after a sharp fall yesterday on growth worries. A weaker dollar is likely
also supporting the sector.
    Autos stocks meanwhile are the worst-performing, down 0.4 percent after China poured
cold water on hopes for auto tax cuts there. 
    AMS fell as much as 8 percent at the open after it cut its revenue guidance,
reigniting fears around the semiconductor sector. 
    On the UK front, newly-listed carmaker Aston Martin reported strong Q3 profit and
said it expected full-year sales to come in at the top end of expectations.
    Its shares opened up 2.7 percent but quickly turned negative, now down 7.6 percent and set
for their worst ever daily fall.
    Here are the top movers: 
 
 
 
    (Helen Reid)
    *****
    
    EUROPEAN FUTURES UP, BUT BEWARE BAD NEWS FROM AUTOS, CHIPMAKERS AND PERSIL MAKER (0719 GMT)
    European futures are higher, defying earlier calls for another drop by financial
spreadbetters as renewed optimism over a possible end to the prolonged trade spat between the
United States and China appeared to offset worries over Rome's showdown with Brussels and May's
Brexit drama.
    Some negative headlines may curb the gains though: China has poured cold water on industry
hopes for a cut in auto purchase taxes, in Austria AMS cut its sales forecast, the latest chip
supplier hurt by Apple's weak sales forecast for the upcoming holiday season, and Henkel shares
are indicated lower after the maker of Persil detergent and Loctite adhesives reported a
slowdown in sales.
    AMS shares are seen down 10 percent at the open. They have already lost almost a third of
their market cap this month, on track for their worst month in a decade.
    Here are this morning's headlines to watch:
    Austria's AMS becomes latest Apple supplier to slash forecast
    China state planner douses hopes for auto tax cuts, tells sector to buckle up
    Henkel sales growth slows as adhesives cool
    Hugo Boss seeks sales boost from speed, online, Asia
    French group Bouygues maintains toned-down outlook as 9-month profits fall
    NN Group's Q3 profit rises on improving Dutch market
    European passenger car sales slump 7.4 pct in October
    Global regulators hold off designating 'too big to fail' insurers
    Linde AG expects revenue and earnings to be at top end of forecast 
    Antofagasta approves $1.3 bln Los Pelambres copper mine expansion
    K+S cuts outlook after dry weather weighs on production
    SKF to increase cost focus against an uncertain macro backdrop
    Dutch insurer NN Group's Q3 core profit beats estimates with 7 pct rise
    UK forced to accelerate planned reform to gambling regulations
    Ericsson doesn't see sales lift after security concerns hit Chinese rivals
    Vodafone may replicate elements of UK tower sharing venture elsewhere
    Britain's Lloyds agrees settlement with HBOS whistleblower
    BMW, Vodafone, Ericsson urge EU to consider 5G car standard
    (Josephine Mason)
    *****
    
    MORNING CALL: POLITICS CONTINUE TO DOMINATE
    Good morning and welcome to Live Markets. 
    European stocks are called to open lower today even after Asian equities rose overnight on
news that China has delivered a written response to U.S. trade demands.
    Politics and falling oil prices continue to overshadow, with Brexit drama dominating the UK
market and Italy's deepening budget crisis and showdown with the EU Commission driving bond
yields up and bank stocks down.
    "While (Theresa May was able to achieve what she called collective approval from her cabinet
to accept the deal, the gritted teeth consensus could well be tested in the coming days," says
Michael Hewson, chief market analyst at CMC Markets UK.
    Financial spreadbetters call the DAX 30-35 points lower, the CAC40 is expected to open 11-15
points lower and the FTSE 100 will be flat to down 28 points, according to IG and CMC Markets
UK.

    (Josephine Mason)
    *****

    
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