(Resending blog post for technical reasons, no changes to text)
* European shares drop
* STOXX set for third straight week of losses
* BT CEO to step down, shares up
June 8 (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: firstname.lastname@example.org
BOND PROXIES VS BANKS: TIME TO SWITCH? (1106 GMT)
deliver a hawkish surprise on their massive bond buying programme cannot be taken for granted.
What looks certain instead is that the European Central Bank is keeping its options open as
its moves towards policy normalisation. And that may well prompt some investors to start
reconsider their sectoral allocations.
Much in focus will be sectors highly sensitive to the direction of interest rates - bond
proxies and banks.
Over the last four months, utilities and real estate, which tend to benefit from lower bond
yields, have clearly outperformed banks, which instead benefit when rates increase.
For Deutsche Bank strategists, however, the days of this outperformance may be numbered and
say it's time to position for higher bund yields. Here's what they recommend:
* Upgrade banks to small overweight from benchmark
* Downgrade real estate to underweight from overweight
OPENING SNAPSHOT: IN THE RED (0721 GMT)
The market is selling off pretty sharply this morning with the DAX and FTSE MIB both falling
as much as 1.2 percent at the open, and the STOXX down 0.5 percent.
Every stock on the German index is in the red, and overall it's finanicals that are taking
the brunt of the selling. Meanwhile German Bund yields are falling as investors turn back to
Looks like there is more than just a bit of anxiety in markets ahead of the G7 leaders'
summit which starts today. Here's our latest on the build-up to that:
"I am going for a big sell-off," says one trader. "Way too much complacency."
3.6 percent after the U.S. Federal Communications Commission expanded market access for SES' O3b
WHAT YOU NEED TO KNOW BEFORE EUROPE OPENS (0650 GMT)
European shares are expected to open lower today with futures pointing to declines of
0.6-1.1 percent. The STOXX 600 regional benchmark is on track for its third weekly loss in a row
as expectations of tighter monetary conditions, renewed strength in the euro and growing
political worries take their toll.
Expectations the ECB could signal plans to wind down its bond buying programme as early as
next week could continue to support banking stocks, as well as fresh reports about possible
dealmaking in the sector.
reported that top shareholders had been consulted about a potential tie-up between the two
Other stock movers: BT's CEO Gavin Patterson to step down (+1% pre-mkt); Hermes to replace
sale of naval vessels business - source (+0.5% pre-mkt); Sports betting passes New Jersey
paper Borsen; Lloyds sells Standard Life Aberdeen stake
EARLY MORNING HEADLINE ROUNDUP (0554 GMT)
Deutsche Bank sounds out investors about Commerzbank deal-Bloomberg
Deutsche Bank says chairman sees no need to bring up Commerzbank deal [nL5N1T96HL
Novo Nordisk considers laying-off up to 3,000 staff - Danish paper Borsen
Hermes to replace LafargeHolcim in France's CAC 40 stock index from June 18
Sports betting passes New Jersey legislature, moves to governor
RBS CEO says wants to buy bank's shares back from UK government
Lloyds sells Standard Life Aberdeen stake
Thyssenkrupp examines sale of naval vessels business - source
BPER CEO says fighting pressure to cut bad debt with collection unit sale
Ex-Volkswagen CEO summoned to testify in emissions lawsuit-Bild
Geordie Greig named as neweditor of Daily Mail
MORNING CALL: EUROPEAN SHARES SEEN LOWER (0524 GMT)
European shares are expected to start the session in the red with financial spreadbetters
expecting London's FTSE to open 24 points lower at 7,680. Frankfurt's DAX is set to open 98
points lower at 12,713 and Paris' CAC to open 30 points lower at 5,418.
Over in Asia, shares stepped back from a 2-1/2 month high as risk appetite soured on bets
that Europe's massive monetary stimulus was nearing an end, compounded by uncertainty over trade
relations ahead of a key meeting of global leaders.