LIVE MARKETS-Banks in "pole position" for dividend delivery

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

BANKS IN "POLE POSITION" FOR DIVIDEND DELIVERY (1040 GMT)

One day after the market read Fed's Powell's remarks as hawkish, banks in Europe are

understandably doing quite well compared to the broader market's weakness.

On top of that there is an upbeat note from Citi analysts, who highlight the sector's

dividend potential, reiterating their overweigh stance.

"Banks sector remains a stand out... and (is)... in pole position for dividends," they

write. They estimate a Compound annual growth rate for European banks of more than 10 percent in

2017-2019.

Here are their top picks that should benefit from the tailwind of higher rates and strong

PMI (Purchasing Managers Index): Credit Suisse (IOB: 0QP5.IL - news) , KBC Groep, Societe Generale (Swiss: 519928.SW - news)

, Standard Chartered (BSE: 580001.BO - news) .

Europe's banks are up 1.7 percent year to date, while the STOXX is down 2

percent.

(Danilo Masoni)

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OPENING SNAPSHOT: EARNINGS FAIL TO SHAKE WALL STREET GLOOM (0812 GMT)

Most bourses and sectors have opened in negative territory in Europe and it seems the fresh

new batch of corporate results has not changed the negative mood set in Wall Street with fears

of U.S. rates rising faster than expected.

Here's your openening snapshot:

(Julien Ponthus)

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ON THE RADAR: EARNINGS, LOTS OF THEM! (0752 GMT)

As we said earlier, pushing aside fears that U.S. rates could rise faster than expected,

there is plenty of news to animate the trading session in Europe. Plus, as data showed

yesterday, there isn't currently much of a case for the ECB to accelerate its path to monetary

normalisation.

Anyhow, here are a few stories which could move shares this morning:

Among the blue-chips there is Bayer (IOB: 0P6S.IL - news) with Q4 profit edging lower, Solvay (LSE: 0NZR.L - news) which

sees a slowing of profit growth in 2018 and EFG International (IOB: 0QJX.IL - news) reporting a worse

than expected 2017 loss.

From the Benelux, Bekaert (EUREX: 11962877.EX - news) reports a flat 2018 and supermarket retailer Ahold

confirms Q4 sales.

In the banking sector, Erste Group reported 2017 profits boosted by the economic upswing in

eastern Europe.

Another possible mover is Safran (LSE: 0IU8.L - news) , which according to Reuters sources, is close to an Indian

combat jet engine deal.

On the M&A front, AstraZeneca (NYSE: AZN - news) will spin off its autoimmune drugs into a new biotech company

and Comcast (Swiss: CMCSA.SW - news) 's $31 bln Sky (Frankfurt: 893517 - news) bid is still making front page news.

For more headlines check out:

(Julien Ponthus)

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NOT SO FAST! A CASE FOR CAUTION ON U.S. RATES (0725 GMT)

While some traders are now betting that the Fed will squeeze in a fourth rate hike this

year, will these expectations really sink in and become the new consensus?

According to CMC Markets (LSE: CMCX.L - news) ' Michael Hewson, there is a case for caution here as the American

economy may not be rising as fast as it currently seems.

"There is an argument that we could be heading for further softness, which might cast doubt

on U.S. rate expectations this year, if sustained", he argues, noting recent "economic data

suggests that the US economy could well be heading for a bit of a soft patch".

An answer might be given this afternoon with U.S. GDP data (1330 GMT).

(Julien Ponthus)

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EUROPEAN STOCKS FUTURES OPEN LOWER (0703 GMT)

Down it is, but nothing dramatic as the worst losses at the moment (that's the FTSE and

IBEX) are limited to 0.5 percent:

(Julien Ponthus)

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MORNING CALL: EUROPE SEEN OPENING LOWER AFTER POWELL SPOOKS WALL STREET (0625 GMT)

Good morning from snowy London!

European shares are expected to open lower, following the trend set by U.S. stocks, which

suffered their biggest daily drops since the early February selloff after Fed Chairman Jerome

Powell revived (not necessarly willingly) fears about fast rising interest-rates.

In Asia, shares extended losses and bonds were sold off as weak factory data from China

revived worries about global economic growth.

In Europe, there will be plenty of companies reporting annual results this morning to

animate the session.

Financial spreadbetters expect London's FTSE to open 53 points lower, Frankfurt's DAX to

open down 82 points and Paris' CAC to lose 35 points.

(Julien Ponthus)

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