February 14, 2018 / 7:37 AM / 7 days ago

LIVE MARKETS-What's on our radar ahead of the open

    * European stocks futures rise
    * U.S. inflation in focus
    * Asian shares mixed

    Feb 14 (Reuters) - Welcome to the home for real time coverage of European equity markets
brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. Reach him on
Messenger to share your thoughts on market moves: julien.ponthus.thomsonreuters.com@reuters.net
    
    
    WHAT'S ON THE RADAR AHEAD OF THE OPEN (0730 GMT) 
    European markets are expected to open in positive territory but all eyes are really on the
U.S. inflation data, which will come in early afternoon and will determine the fate of this
session. 
    In the meantime, a steady flow of corporate results and M&A will give traders enough to gnaw
on while waiting for the big numbers.
    In the banking sector, Credit Suisse posted a third straight annual loss but it was smaller
than expected. Credit Agricole saw a 33 percent jump in quarterly profit while French investment
bank Natixis last evening reported an unexpected rise in quarterly net profit.
    For cyclicals, Thyssenkrupp Q1 operating profit is up 35, Dutch chemical firm DSM's Q4
profit beat expectations and Clariant 2017 profit missed estimates after a turbulent year.
    Swedish brake systems maker Haldex reported a rise in fourth-quarter core earnings but said
investments in development and expansion in North America and China would hold back
profitability in 2018.    
M&A: Danone to sell 14 percent stake in Japan's Yakult.
In the UK, Sky won the bulk of Premier League rights.  
    (Julien Ponthus) 
    *****
        
    EUROPE TO OPEN IN POSITIVE TERRITORY, FUTURES INDICATE (0705 GMT)
    Looks like European bourses are set to open on a positive note, but of course, the rest of
the session is largely expected to depend on the U.S. inflation data, which is to be published
at 1330 GMT.     
 
    (Julien Ponthus)
    *****  
    
    A "POWELL PUT"? (0657 GMT) 
    The incoming U.S. inflation data is sure keeping markets on their toes and it's interesting
to note that the new Federal Reserve Chair Jerome Powell's first words at a ceremonial
swearing-in was that the central bank would keep watching for financial stability risks. 
    "We will remain alert to any developing risks to financial stability", Powell said on the
heels of a market rout that shaved 10 percent from the value of major U.S. stock indexes.
    A lot of analysts are still trying to figure out how Powell would react to a melt-down and
wondering whether there would be such as thing as a "Powell Put", in the same way that the
so-called "Greenspan Put" came to the rescue in 1987. 
    On Monday, Stéphane Déo, strategist for LBPAM, asked himself whether the "Greenspan Put" had
disappeared and what to make of the old saying recently used by Bank of America Merrill Lynch
analysts: "Markets stop panicking when central banks start panicking".
    In the meantime and as far as we are concerned today, as said Greg McKenna, chief market
strategist at CFD and FX provider AxiTrader: "Even a slightly higher number could set the cat
among the pigeons given the late cycle stimulus the Trump Administration is pumping into the
U.S. economy".     
 
    (Julien Ponthus)
    *****
    
    MORNING CALL: SLIGHTLY UP AHEAD OF U.S. INFLATION (0615 GMT)
    Good morning and welcome to Live Markets.
    Early indications from spreadbetters point to Europe opening slightly in positive territory
after a mixed session in Asia. All eyes however are on the U.S. inflation data which could
soothe, or inflame, fears of faster rate hikes globally.
    London's FTSE is seen opening 15 points higher, Frankfurt's DAX 46 points higher and Paris
CAC up 17 points. 
    (Julien Ponthus)
    *****

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