Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Joice Alves. Reach her on Messenger to share your thoughts on market moves: email@example.com
ON THE RADAR: CORPORATE RECESSION (0658 GMT)
Refinitiv data showed yesterday that Europe’s corporate recession is expected to accelerate with companies listed on the STOXX 600 now expected to report a drop of as much as 5.3% in Q3 earnings, much worse than the 3.7% fall expected a week ago.
With that in mind, investors have a lot of corporate news to digest today.
There are however some positive news among the flurry of trading updates. Despite the gloomy auto market, Peugeot maker PSA reported higher revenue for Q3, as the French company benefited from demand for its pricier SUV models even as its vehicles sales faltered globally. Also likely to support the sector is an FT report that talks between the U.S. and the EU could be alternative to imposing tariffs on automotive imports next month.
Positive figures were disclosed also by Dutch paints and coatings maker Akzo Nobel <NV AKZO.AS>, which says it announced a 500 million euro share buyback, after reporting a 23% jump in core profit driven by cost cuts and more expensive product prices.
But of course it is not all roses. France's Getlink reports flat revenue as Brexit uncertainties weigh.
European banks seem also to continue to struggle. Swedbank Q3 profit squeezed by costs for money-laundering fall-out and Handelsbanken to slash costs as restructuring charges dent Q3 profit
Among other possible movers is France’s Casino as it plans to raise 1.5 bln euros to restructure its debt, Finland's Neste beating market expectations with record Q3 result. SEB also beat market expectations.
Among other companies reporting are: Norsk Hydro Bic, Barco, Melexis, Telenor, Gecina, Ingenico, Carrefour, Aeroports de Paris. Edenred, Eramet
DEEPER INTO UNCERTAIN TERRAIN(0535 GMT)
European bourses are seen opening lower this morning, after the Brexit saga took another twist last evening when British lawmakers agreed on Boris Johnson's deal, but refused to hurry up making it quite unlikely that Britain will be out of the European Union by 31 Oct and adding to the uncertainty the worries of a potential new election in the country.
Asian shares and U.S. stock futures dipped as investors digested another Brexit setback and as revenue warnings from Texas Instruments was seen as the latest sign that the global microchip industry is feeling the heat from the prolonged U.S.-China trade spat.
As a sign that investors lost recent hopes that a disorderly Brexit would be avoided, the pound dipped below the $1.30 benchmark.
Spreadbetters at IG expect London's FTSE to open 16 points lower at 7,197, Frankfurt's DAX to open 97 points lower at 12,658 and Paris' CAC to open 49 points lower at 5,608.
In terms of corporate news, investor focus remains on companies' results as the Q3 earnings season is reaching full speed.
***** (Reporting by Danilo Masoni, Joice Alves, Josephine Mason, Julien Ponthus and Thyagaraju Adinarayan)