LIVE MARKETS-Opening snapshot: Mostly higher as telecoms continue to shine

Welcome to the home for real-time coverage of European equity markets brought to you by Reuters

stocks reporters and anchored today by Julien Ponthus. Reach him on Messenger to share your

thoughts on market moves: julien.ponthus.thomsonreuters.com@reuters.net

OPENING SNAPSHOT: MOSTLY HIGHER AS TELECOMS CONTINUE TO SHINE (0841 GMT)

The pan-European STOXX 600 is at their highest in a week in the opening 30 minutes, with all

the major bourses up between 0.1 and 0.5 percent in the opening 20 minutes. Italy's the

exception, falling 0.2 pct as Tenaris (Amsterdam: TS6.AS - news) sinks.

Telecoms continue to shine with the sector index up 0.8 percent hitting their highest since

mid-May amid renewed hopes of M&A after Brussels gave the all-clear for Deutsche Telekom (IOB: 0MPH.IL - news) 's

takeover of Swedish peer Tele2 (LSE: 0QE6.L - news) . The sector's also in focus after New Zealand's intelligence

agency rejected the domestic telecom industry's request in the country to use 5G equipment

provided by China's Huawei.

Last week, WSJ reported that Washington is trying to persuade wireless and internet

providers in allied countries to avoid equipment from the Chinese company.

Here are snapshots of the indices and top movers on the STOXX 600:

EUROPEAN FUTURES POINT TO HIGHER OPEN (0737 GMT)

European share futures are putting in a pretty strong show this morning, with the four main

bourses all up between 0.4 and 0.6 percent, lifted by gains in Asia overnight.

Check out the European stock market team's survey of investors who give their forecasts for

equity markets for the year-end and heading into 2019 - you'll not be surprised to hear that

slowing growth, political risks and worries over Washington's protectionist policies loom large.

POLL-FTSE 100 set for hesitant recovery in 2019 amid Brexit crunch

POLL-Growth and trade worries to keep a lid on European stocks in 2019

Other headlines this morning:

Old habits die hard: European equity traders still prefer the dark, defy Mifid

Nestlé, Unilever (NYSE: UL - news) in pole position for GSK's Indian Horlicks business - reports

BMW (EUREX: BMWE.EX - news) chief says considering second U.S. manufacturing plant

LafargeHolcim (LSE: 0QKY.L - news) sees slower 2019 sales growth but higher profitability

Deutsche Bank (IOB: 0H7D.IL - news) mulls shake-up of high-level executives - WSJ

Milan prosecutors wrap up Gucci tax probe, trial likely - source

Court rejects Vivendi (LSE: 0IIF.L - news) trust move to suspend Mediaset AGM decisions

Britain eyes large-scale CO2 capture and use by mid 2020s

(Josephine Mason)

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A NAIL-BITING SESSION FOR BREXIT WORRIERS (0711 GMT)

This is a big day for investors worried about the consequence of Brexit as the British

government and the Bank of England are likely to step up their warnings against a no-deal

Brexit.

Later this morning, an assessment of the impact of different Brexit outcomes will be

published and then, at 1630 GMT, the BoE (Shenzhen: 000725.SZ - news) will publish the results of its 2018 stress tests and

its assessment of the implications of different Brexit scenarios.

"Banks will be in focus across the session, as traders await the release of the BoE’s stress

test results", wrote LCG's Jasper Lawler.

"As all banks passed the Brexit doomsday scenario last year and have also since boosted

their balance sheets; the expectation is that they will pass it again", he said.

The BoE's stress tests were initially scheduled to be published early this morning which is

good thing, or a bad thing, depending on your sleeping habits.

Here's our Financial regulation correspondent's take:

And here's some reading:

UK government, Bank of England to spell out no-deal Brexit risks for economy

(Julien Ponthus)

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MORNING CALL: A TENTATIVE REBOUND FOR EUROPEAN SHARES (0631 GMT)

Indications from financial spreadbetters point to European shares making a slight rebound

this morning after ending the previous session in the red due to trade war jitters.

While the mood has improved from the European close, there are conflicting signals on the

prospects for de-escalating the Sino (Dusseldorf: 1205802.DU - news) -U.S. dispute, which could still spill over to Europe.

White House economic adviser Larry Kudlow did offer some hope by confirming a dinner powwow

between Trump and his Chinese counterpart Xi Jinping at the coming G20 gathering in Argentina

but there are fears at the same time that the U.S. President could impose tariffs on imported

cars from the European Union.

U.S. monetary policy will also be on investors' mind while waiting for a speech by the Fed's

Powell who Trumps wants to go easy on tightening amid recent market volatility and signs of a

global slowdown.

(Julien Ponthus)

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