LIVE MARKETS-Opening snapshot: Europe edges up, Italy struggles
* European stocks edge up
* Nasdaq ends at record close
* Tech stocks lead Hong Kong shares higher
LONDON, June 6 (Reuters) - Welcome to the home for real-time coverage of European equity
markets brought to you by Reuters stocks reporters and anchored today by Kit Rees. Reach her on
Messenger to share your thoughts on market moves: kit.rees.thomsonreuters.com@reuters.net
OPENING SNAPSHOT: EUROPE EDGES UP, ITALY STRUGGLES (0718 GMT)
European shares have opened slightly up, while the more volatile Italian stocks
have now turned lower, extending yesterday's sell-off and following a sudden drop this
morning in government bond prices, as ECB policymakers Praet and Weidmann speak.
Among single stocks, top gainers are SCHIBSTED, up 6.4 percent following an
upgrade by JPMorgan, and WH SMITH, up 4.2 percent following a well received trading
update. On the downside RPC GROUP is down 8 percent after disappointing results, while
AXEL SPRINGER is down 2.7 percent after a JPMorgan downgrade.
Here's your snapshot:
(Danilo Masoni)
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WHAT WE'RE WATCHING AHEAD OF THE EUROPEAN OPEN (0645 GMT)
European stocks are seen opening higher, though trading is likely to remain volatile as
demonstrated by yesterday's slide into negative territory on the back of remarks from Italy's
new prime minister promising radical change and increased spending.
Global trade is another source of worry for the market ahead of the G7 summit set to begin
on Friday, though the EU isn't expecting a breakthrough on U.S. steel and aluminium tariffs.
Aside from these pressure points which are longer-running issues, global growth is ticking
along just fine in the background and should underpin equities going forward. Yesterday the
Nasdaq ended at another record close and tech stocks in Asia and Europe have also rallied.
Among stocks, paper M&A has been in focus recently with Smurfit Kappa expected to recover
some of yesterday's losses after International Paper confirmed that it will not make an offer
for the Irish packaging company.
Here's a round-up of European company headlines this morning:
International Paper to drop bid for Smurfit Kappa
Voestalpine's full-year operating profit rises 43 pct
French group Thales targets more sales and profit growth for 2018-2021
Credit Suisse to pay $47 mln to resolve hiring practices probe
Italy's Eni says it has no material exposure to Iran
Spain's Repsol says to boost production, hike dividend in 2020
UK's RPC seeks to sell non-core assets, FY profit up 36 pct
UK's Carpetright secures 60 mln stg lifeline in equity raise
Finance watchdog to investigate British bank TSB over IT outage
Eletrobras and EDF to study French-Brazilian nuclear cooperation
(Kit Rees)
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STOCKS FUTURES ON THE RISE (0605 GMT)
European stocks futures have opened higher, pointing to a positive start later on for
equities as the market regains its composure over Italy, with investors focusing instead on the
backdrop of global economic growth which has carried tech stocks to record highs.
Here's your futures snapshot:
(Kit Rees)
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MORNING CALL: EUROPEAN SHARES SEEN OPENING HIGHER (0532 GMT)
Good morning. European stocks are seen opening broadly higher, according to financial
spreadbetters, shaking off concerns over Italian debt as tech stocks globally continue to steam
ahead.
Spreadbetters see Britain's FTSE opening 0.1 percent higher, Germany's DAX gaining 0.2
percent and France's CAC up 0.3 percent.
It's been a little mixed overnight in Asia, with tech firms leading Hong Kong shares higher,
while China stocks slipped. Wall Street saw the Nasdaq end at a record close.
In the previous session, European stocks slid into negative territory following remarks from
Italy's new prime minister promising radical change, with Italian government bonds also selling
off.
Even though the market is evidently jumpy around Italy, investors do not see a risk of
contagion to other regions, at least for now.
"Despite the ongoing uncertainties in Italy, we see limited systemic risks and maintain our
positive view on global financial stocks, which are more attractively valued after the recent
share price retreat," analysts at Credit Suisse Wealth Management said in a note, adding that
they preferred U.S. financials.
"EU financial stocks may face some headwinds if Italian government bond volatility persists.
Nevertheless, EU banks’ robust balance sheets should continue to support our positive view on
their subordinated credits," Credit Suisse WM's analysts said.
(Kit Rees)
(Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus)