* European stocks rise
* ECB meeting in focus
LONDON, April 26 (Reuters) - Welcome to the home for real-time coverage of European equity
markets brought to you by Reuters stocks reporters and anchored today by Helen Reid. Reach her
on Messenger to share your thoughts on market moves: firstname.lastname@example.org
EARNINGS TRACKER: FINANCIALS, CYCLICALS LEAD THE WAY (1146 GMT)
season, which is showing financials and cyclicals performing well, while currency headwinds keep
European results from shining.
Earnings so far for the STOXX 600 are slightly above initial consensus projections,
according to JP Morgan's Mislav Matejka, but European corporate sales figures are lagging due to
a strong euro.
Earnings numbers in Europe and Japan are slightly softer than the U.S., but still positive.
Matejka notes that the proportion of European beats appears to be improving as we progress
through the reporting season.
In sectors, cyclicals and financials stand out with much stronger growth than defensives.
"Financials are benefiting directly from higher yields, and valuations suggest that energy
and telecom stocks still have decent catch-up potential," writes the Credit Suisse investment
The U.S. is strongly outperforming Europe in Q1 sales, largely due to a significant headwind
for Europe from the euro's sharp appreciation - up 15 percent versus the dollar in Q1
year-on-year, notes JPM's Matejka. But he reckons we're at the worst of the currency headwind,
and second-half earnings should look healthier as a result.
Our own data shows that first-quarter earnings growth, in euro terms, stands at 3.3 percent
for the MSCI EMU.
WHEN GOOD AIN'T GOOD ENOUGH: SHELL MISSES OUT ON OIL GAINS (1112 GMT)
but that's just not good enough for investors.
A cash flow forecast fell short of investors' strong expectations and sent the shares of the
on the blue chip index.
The setback means that Shell is missing out on oil prices rising (the Brent crude oil
to be smoothly riding that wave.
The French energy company's shares are up 0.9 percent after reporting record high quarterly
oil and gas output and beating profit forecasts.
Here's a chart showing how Shell is missing out in comparison to Total:
(Julien Ponthus and Ron Bousso)
UK EQUITIES FANS, PLEASE FORM AN ORDERLY QUEUE (1020 GMT)
The trend is going mainstream: more and more brokers - today it's Credit Suisse, Monday it
"The UK ranks as the second cheapest major region after Japan", the Swiss bank said in an
equity strategy note this morning, citing a positive macro outlook and its belief that "the
Brexit discount should fall".
Credit Suisse argues that an early general election is unlikely but that there is, however,
a risk that the pound will rise and weigh on British shares.
The broker believes that banks, retail, big cap oils and mining, tobacco and spirits offer
Like it was said at the beginning of the month, the euro zone versus UK trade is becoming
Here's Monday's story:
Deutsche Bank joins growing swell of optimism for UK stocks
WHAT TO WATCH BEFORE THE EUROPEAN OPEN (0652 GMT)
A timid bounce is in store for European stocks on Thursday as investors’ focus turns back to
earnings, dissipating anxiety over rising U.S. bond yields which had sent the benchmark STOXX
600 to its lowest in a week.
In a crowded field for results, oil majors Total and Royal Dutch Shell stand out with
profits soaring on stronger crude prices and record output.
Deutsche Bank shares are seen falling 2.8 percent at the open after the bank
announced cutbacks to its bond and equities trading in a major overhaul of its troubled
investment bank, after reporting a 79 percent drop in net profit in the first quarter.
"Despite guidance that it expected to be flat to down in 1Q18 depending on the business
area, results are weaker than expected with revenues and costs both missing," writes a trader.
"Key will be the conference call where market will look to question new CEO on his vision for
the bank and how the cuts to the CIB will impact both revenues and costs."
which reported a sharp fall in quarterly profit as telecom operators held off spending. Its
shares are seen down 4 to 7 percent.
Bollore Group could suffer further share price losses after French tycoon Vincent
corruption in his West Africa logistics empire. The stock is down 8 percent since Tuesday’s
was cooperating with authorities and noted one of its members of staff had been placed under
FUTURES UP AS HEAVY EARNINGS DAY KICKS OFF (0614 GMT)
Futures for the main European benchmarks have opened flat to slightly higher as investors'
focus turns to earnings. Looks like the move at the open won't be sufficient to recoup most of
yesterday's losses, however, which took the STOXX 600 to its lowest in a week.
Oil majors are a main focus today: Total just reported a consensus-beating rise in net
profit in the first quarter, helped by record output and high oil prices. Shell profits jumped
42 percent in Q1, the highest in over three years.
French oil major Total's Q1 profits lifted by record production
Sandro owner SMCP's Q1 turnover lifted by thriving China, U.S. fashion sales
Telecoms group Orange's Q1 core operating profit grows 3.8 pct on higher sales
Shell profits soar on stronger oil prices
Barclays reports better than expected first quarter pretax profit of $2.4 bln
ECB MEETING: NO CHANGES EXPECTED BUT SLOWER GROWTH, TRADE WAR IN FOCUS (0557 GMT)
Analysts broadly expect no big news from today's ECB meeting in terms of changes to policy
or communication, but the Euro zone's weaker economic data, and the impact of a potential global
trade war, will be hot topics Draghi will surely be asked to comment on.
"ECB speakers have put on a brave face recently despite the weaker incoming data," write
will be much improved from March.
But the main issue remains "how to anchor interest rate expectations," they add. A wildcard
option would be to express a view on the long-term equilibrium interest rate, but this would
come with communication risks.
On trade wars, the ECB should normally look through a tariff-induced rise in inflation, but
with rising oil prices on the back of geopolitical risks, the ECB would be concerned about the
impact on inflation expectations."
SocGen expects a decision in June/July to extend the asset purchase programme until December
at 15 billion euros per month, and rate hikes in June and September 2019, ending the negative
RESULTS TO WATCH TODAY (0547 GMT)
Earnings will drive the day in European trading. Roche, the world's biggest cancer
drugs maker, lifted its outlook after first-quarter sales topped analyst estimates.
In less optimistic results, Deutsche Bank announced cuts to bond and equities
trading, overhauling its troubled investment bank after reporting a 79 percent drop in net
profit in Q1.
German forklift maker Kion blamed slower growth for a lower-than-expected order
intake, while network equipment maker Nokia reported a sharp fall in profit as
telecom operators held off spending.
In other news, a judge placed French tycoon Vincent Bollore under formal investigation
yesterday evening over his port network in West Africa. He is suspected of corrupting foreign
public officials and complicity in corruption, his lawyer has said.
Tuesday, the day police began to question him.
And at 0600 GMT we'll have UK results coming in, with notably oil major Royal Dutch Shell
reporting. After such a run-up in oil stocks recently with crude surging higher, it'll
be interesting to see whether these results deliver, and how the shares react.
Here are some of today's main headlines:
Deutsche Bank announces major overhaul of investment bank
Roche lifts 2018 revenue outlook as new drug sales accelerate
Philips Lighting 1Q core earnings miss expectations
Kion Q1 order intake hit by slower growth, profit rises
Nokia posts falling first quarter profits
Schindler's Q1 profit rises on strong Asia-Pacific growth
France's AccorHotels in talks to buy Movenpick -Le Figaro
Spain's Sabadell Q1 net profit rises 33 pct on lower provisions
Covestro Q1 earnings up on higher prices for foam chemicals
French tycoon Bollore placed under formal investigation in Africa graft probe
MORNING CALL: EUROPEAN STOCKS TO RECOVER ON EARNINGS BOOST (0527 GMT)
Good morning and welcome to Live Markets. The main European benchmarks are called to open
higher today after a pretty hefty fall yesterday, as anxiety over bond yields dissipates
somewhat to be replaced by a focus on earnings.
Wall Street's robust earnings helped quell concerns over the U.S 10-year yield breaching 3
percent overnight, boosting the Dow and S&P 500 as well as Asian stocks, which bounced back from
three-week lows plumbed in the previous session.
Spreadbetters call the DAX 60 points higher at 12,482, the CAC 40 up 23 points at 5,436, and
the FTSE 100 9 points higher at 7,389.
(Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus)