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LIVE MARKETS-Brexit deal hops fuel gains, but earnings test key

Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: thyagaraju.adinarayan.thomsonreuters.com@reuters.net

BREXIT DEAL HOPS FUEL GAINS, BUT EARNINGS TEST KEY (0659 GMT)

Brexit deal hopes again take centre stage as futures trading at European bourses point to a strong open, but the real litmus test will be in the afternoon, when some big Wall Street banks kick off the earnings season.

Germany's DAX futures are up 0.6% at their highest since July 27 and the Eurostoxx futures are just shy of a two-week high.

A BBC report overnight that the European Union is considering a new emergency summit to get a Brexit deal brought back optimism in markets, although London FTSE stock futures are rising just 0.3%, lagging the broader market as sterling's rally limits gains.

In corporate news, Kloeckner & Co's shares are sliding 8% in pre-market Frankfurt trade after the steel company warned on profits in a latest European industrials are still suffering blows from trade tensions and faltering demand.

It's a different picture at consumer-facing companies with shares in German meal-kit company Hellofresh seen up 6% after it raised its profit outlook.

In the UK, dealers call British housebuilder Bellway's shares 2% higher citing positive tone in statement and the Street is divided on Hays after the recruiter reported no growth in net fees. Rivals Britain's PageGroup and Robert Walters warned on profits last week.

Hard day for UK industrials: dealers call Renishaw shares down 20% after the British engineering group's profits tanked 85%, while they see Vesuvius shares dropping 10% after its profit warning.

European companies with exposure to Turkey in focus after U.S. President Trump slapped sanctions. BBVA, UniCredit, BNP Paribas, Telia and Lufthansa are among the top companies with exposure to Turkey.

Later today, we have JP Morgan, Citi, Goldman Sachs, Wells Fargo and Blackrock kicking-off the third-quarter earnings season.


Key headlines:

BRIEF-Kloeckner & Co SE outlook for full year EBITDA burdened

Schroders assets under management up to 450.8 bln stg at end-Sept

Italy's Ferretti cuts IPO price range to 2.0-2.5 euros per share - source

Indivior raises full-year revenue forecast on Suboxone strength

Hays reports flat quarterly net fees

African masts operator Helios Towers prices IPO at low end of range

Neil Woodford's flagship Equity Income Fund to be shut down

Bellway reports higher annual profit on strong demand for homes

Steel trader Kloeckner cuts guidance again, shares tank

Engineering firm Renishaw first-quarter profit tanks 85%


(Thyagaraju Adinarayan)

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TENTATIVE GAINS (0532 GMT)

European stocks are seen opening slightly higher on renewed hopes that Britain had a chance to leave the European Union with a deal later this week as UK-EU go into negotiations later this week.

Fresh optimism was underpinned by a BBC report overnight that the European Union is considering a new emergency summit to get a Brexit deal.

Citi strategists however were sceptical on a Brexit deal, saying there was "little landing space for a deal before 19th October".

Financial spreadbetters IG expect London's FTSE to open 7 points higher at 7,220, Frankfurt's DAX to open 8 points higher at 12,495, and Paris' CAC to open 8 points higher at 5,651.

(Thyagaraju Adinarayan)

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(Reporting by Danilo Masoni, Joice Alves, Josephine Mason, Julien Ponthus and Thyagaraju Adinarayan)