LIVE MARKETS-Fund managers hold tight to European growth theme
* STOXX falls slightly
* Earnings in focus
Feb 23 (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: danilo.masoni.thomsonreuters.com@reuters.net
FUND MANAGERS HOLD TIGHT TO EUROPEAN GROWTH THEME (1050 GMT)
As investors have had some time to reflect on the market sell-off at the beginning of the
month, faith in the European growth story seems to be the order of the day - just look at how
good the results season has been so far:
Rogier Quirijns, senior vice president and portfolio manager at Cohen & Steers (NYSE: CNS - news) , sees
opportunities within European real estate stocks, citing attractive valuations and demand driven
by a lack of supply and a robust economic backdrop.
"We see attractive real estate opportunities across Europe and nowhere is this more evident
than in Berlin – which has attracted both German nationals and immigrants with its low costs of
living and doing business," Quirijns said in a note.
On a similar theme, Chris Hiorns, portfolio manager of the Amity European Fund at EdenTree
Investment Management, said that he expects growth to feed through into a surge in construction
in the region, which will benefit and builders and suppliers.
Hiorns also mentioned "attractively-priced media businesses" which would gain from an
increase in discretionary spending.
(Kit Rees)
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OPENING SNAPSHOT: EARNINGS, EARNINGS AND MORE EARNINGS (XX GMT)
It's not the biggest opening move from the STOXX 600, but what is interesting are the
sizeable drops for Valeo (LSE: 0RH5.L - news) , Kingspan Group (LSE: KGP.L - news) and RBS (LSE: RBS.L - news) , down 4 to 9 percent
following updates.
Once more though telcos are in favour with Britain's BT leading the pack
higher after British regulator Ofcom unveiled new rules to boost full-fibre broadband.
Here's your opening snapshot:
(Kit Rees)
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WHAT WE'RE WATCHING BEFORE THE OPEN (0748 GMT)
European shares are set to open up slightly with futures trading between flat and a gain of
0.3 percent. The pan-European STOXX 600 is set to end the week flat as markets stabilise and
volatility calms down following a turbulent start to the month that sent the index to a near 6
month low. The STOXX is up 3.5 percent above that low but needs to climb another 6 percent to
reach its January peak.
The earnings season is in full swing with Royal Bank of Scotland in focus after the UK bank
posted its first profit in a decade, although the stock is called down 1-2 percent with traders
saying numbers were a touch light and the rate of cost cutting was materially reduced.
Shares (Berlin: DI6.BE - news) in Swiss Re (LSE: 0QL6.L - news) , Rightmove (LSE: RMV.L - news) and Pearson (Xetra: 858266 - news) are however seen opening higher after their
updates, while Valeo could fall 4-5 percent following a disappointing guidance. Earnings for the
STOXX 600 are seen rising 16.9 percent in the fourth quarter of 2017, according to Thomson
Reuters I/B/E/S data.
On the M&A front, Standard Life (LSE: SL.L - news) is seen supported after it agreed to sell its insurance
division to Phoenix Group for 3.24 billion pounds. Elsewhere, Shire (Xetra: S7E.DE - news) is seen rising 4-5 percent
after the U.S.'s FDA accepted its Biologics License Application and granted priority review for
its lanadelumab treatment.
(Danilo Masoni)
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FUTURES MIXED (0702 GMT)
Stock futures are pointing to an uncertain open in Europe this morning with the DAX seen up
slightly and the FTSE down just marginally, as investors reassess prospects of monetary policy
in the U.S. after concerns of faster rate hikes weighed in the previous session.
(Danilo Masoni)
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EUROPE'S EARLY MORNING HEADLINES ROUNDUP (06XX GMT)
Swiss Re weighs SoftBank (Swiss: SOFB.SW - news) deal as 2017 profit beats estimates
Temenos confident it can accelerate sales at Fidessa - CEO
Sika (IOB: 0QMA.IL - news) earnings beat estimates as Saint-Gobain still looms
French group St Gobain's profits rise, eyes more earnings growth
Valeo profit falls on R&D push, tax charge
Phoenix in talks over $4 bln purchase of Standard Life Aberdeen unit - source
EXCLUSIVE-Telecom Italia (Amsterdam: TI6.AS - news) picks Goldman and Credit Suisse (IOB: 0QP5.IL - news) for network spin-off
Italy's F2i, Rai Way raise bid for Telecom Italia's Persidera unit - sources
Bond changes insulate Avolon from HNA (Shanghai: 600221.SS - news) woes
EXCLUSIVE-EWE stake sale to attract interest from Macquarie, Shell (LSE: RDSB.L - news) -sources
Stobart in talks about potential deal with airline Flybe - source
Rio Tinto (Hanover: CRA1.HA - news) says changing structure, moving some staff
(Danilo Masoni)
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MORNING CALL: EUROPEAN BOURSES SET TO RETREAT (0619 GMT)
Good morning and welcome to Live Markets.
European shares look set to open up slightly after ending off lows in the previous session
on the back of a rebound at Wall Street on easing interest rate worries. The STOXX 600 is set to
end the week little changed little changed, stabilising 3.5 percent above the nearly 6 month-low
hit in the wake of the heavy sell-off earlier this month. The FTSE however is seen down slightly
today.
Over in Asia, shares rebounded as comments from a Federal Reserve official eased worries
about faster rate rises in the United States, while the safe-haven yen held on to its gains amid
heightened volatility across markets.
Here are your morning calls, courtesy of CMC Markets (LSE: CMCX.L - news) :
DAX is expected to open 30 points higher at 12,491
CAC40 is expected to open 11 points higher at 5,320
FTSE100 is expected to open 10 points lower at 7,242
(Danilo Masoni)
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(Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus)