LIVE MARKETS-Opening snapshot: Cyclicals take a dip again
* European shares called down less than 1 pct
* Trump threatens $100 bln more in China tariffs
* Eyes on U.S. jobs report later in the session
April 6 - Welcome to the home for real-time coverage of
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OPENING SNAPSHOT: CYCLICALS TAKE A DIP AGAIN (0717 GMT)
Stocks' sharp swings this week are enough to give you
whiplash.
European stocks are trading down 0.5 percent, with the usual
cyclical suspects autos, basic resources and tech stocks the
worst-performing after the latest salvo in an ongoing exchange
of tariff threats between the U.S. and China.
Dufry (IOB: 0QK3.IL - news) meanwhile is leading gains with a 3.6 percent
rise as investors cheer its share buyback programme and
dividend.
With (Other OTC: WWTH - news) corporate news very thin on the ground, broker notes
are moving some stocks. Next (Frankfurt: 779551 - news) is down 2.7 percent after a
downgrade from Citi to "sell", while M&S is also
suffering, down 2.9 percent after Citi downgraded it to
"neutral".
A few Nordic ex-divs in the mix too: Gjensidige Forsikring (LSE: 0OJC.L - news) ,
Upm (Taiwan OTC: 4752.TWO - news) -Kymmene, and Volvo.
(Helen Reid)
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WHAT YOU NEED TO KNOW BEFORE EUROPE OPENS (0647 GMT)
European stock futures are trading down 0.3-0.7 percent,
giving up only part of the strong gains seen in the previous
session as Trump's new China import tariff threat does not
appear to have changed the prevailing view that a full-blown
trade war is unlikely.
The pan-European STOXX 600 could still end the week with a
small gain, having risen 1.4 percent so far this week.
The focus later in the day will turn to the US jobs report
for more clues on the speed of policy normalisation in the U.S.,
while on the corporate front there is no big market-moving news.
Traders said possible stock movers include Dufry,
seen rising 1 percent after its dividend proposal topped
expectations, while cable maker Prysmian (EUREX: 3056144.EX - news) predicted
higher core profit this year despite the negative impact
expected from currency swings.
In tech, concerns that the semiconductor boom is about to
end, which hit Samsung Electronics shares overnight in spite of
a surprise Q1 record profit, could weigh on European peers like
Infineon (Xetra: 623100 - news) . Traders also said Rheinmetall (Amsterdam: RH6.AS - news)
could be supported by the improving outlook for German domestic
weapons purchases.
(Danilo Masoni)
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DB UPGRADES EUROPEAN GENERAL RETAIL STOCKS (0636 GMT)
Strategists at Deutsche Bank (IOB: 0H7D.IL - news) have upgraded general retail to
overweight and downgraded food retail to benchmark, citing the
positive momentum in sterling.
Europe's general and food retail sectors have more than 25%
of sales coming from the UK, DB says, making them very sensitive
to the pound.
"While food retail has been Europe's strongest sector since
November, outperforming the market by 9%, general retail has
been the weakest, underperforming by 11% over the same period,"
the strategists note.
General retail stocks have thus not yet reflected the strong
gains sterling has been making. Though DB's FX strategists see
the pound weakening over the next six months, they say general
retail could still outperform by about 10% even under this
bearish scenario.
(Helen Reid)
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EUROPEAN STOCK FUTURES DOWN LESS THAN 1 PERCENT (0618 GMT)
Trump's fresh tariff threat against China is surely going to
weigh on sentiment and European stocks futures are all heading
south this morning. However declines are all less than 1 percent
and follow gains of more than 2 percent in the previous session,
as investors still see a full-blown trade war as unlikely.
"US President Trump threatened trade disputes with the rest
of the world by offering to subsidize US farmers. That may
prompt talk of retaliation. However, this is not a trade war.
These are threats for the future, not real policies now," says
UBS WM Global Chief Economist Paul Donovan.
Here's your snapshot:
(Danilo Masoni)
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EARLY MORNING HEADLINE ROUNDUP (0556 GMT)
It looks there is no big corporate news out of Europe early
this morning that could have impact on single stocks. Anyhow
here are the main headlines:
Vivendi (LSE: 0IIF.L - news) presents board candidates for Telecom Italia (Amsterdam: TI6.AS - news) in bid
to please investors
Italy's CDP says will build stake of up to 5 pct in Telecom
Italia
Prysmian CFO sees higher 2018 core profit despite forex hit
Dufry proposes dividend, launches share buyback
France expects combat jet announcement at Berlin Air show -
report
U.S. State Dept OKs possible $2.5 bln sale of military
drones to Germany
Former JPM exec Zames among candidates to replace Deutsche
Bank CEO - Bloomberg
Norsk Hydro (LSE: NHY.L - news) 's Brazil unit sues local prosecutors over spill
analysis
Saipem (LSE: 0NWY.L - news) main investors to ask shareholders to reappoint
Stefano Cao CEO
Eni (LSE: 0N9S.L - news) , Qatar Petroleum are said to hold talks for deal on
giant Mexico field- Bloomberg
Saudi Aramco, Total (LSE: 524773.L - news) to sign refinery expansion deal next
week - sources
Miners insist on rewrite of Congo mining code to protect
exemptions
Enbridge (Dusseldorf: EN3.DU - news) said to seek partial sale of German wind farm stake
- Bloomberg
Moody's places UBS (LSE: 0QNR.L - news) ratings on review for upgrade, maintains
stable outlook on Credit Suisse (IOB: 0QP5.IL - news)
(Danilo Masoni)
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EUROPE SEEN LOWER BUT NO SHOCK AFTER NEW TRUMP TARIFFS (0527
GMT)
After Wall Street closed yesterday, U.S. President Donald
Trump threatened tariffs on $100 billion more of Chinese
imports.
The news, which sent U.S. stock futures back in the red, is
going to weigh on the European open this morning, although it
looks investors are getting somewhat used to the rhetoric.
"Trump has consistently taken a harder line than his
advisers, so this might not entirely shock the markets but it
will certainly weigh on sentiment. Markets will now watch both
the rhetoric from Trump’s cabinet members and China’s response
to assess whether risk of a trade war is materially higher,"
said Credit Suisse in its investment daily.
"We continue to see a trade war as unlikely," it added.
Financial spreadbetters expect London's FTSE to open 38
points lower at 7,161 (-0.5%), Frankfurt's DAX to open 99 points
lower at 12,206 (-0.8%) and Paris' CAC to open 35 points lower
at 5,242 (-0.7%).
Later in the session the focus will turn to the U.S.
non-farm payrolls report, which could give more clues on the
speed at which the Federal Reserve will raise interest rates.
The U.S. March employment report is expected to show
non-farm payroll growth of 193,000 jobs versus 313,000 in the
prior month, according to the latest Thomson Reuters (Dusseldorf: TOC.DU - news) poll of
economists.
(Danilo Masoni)
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