LIVE MARKETS-On our radar: Lufthansa, HeidelbergCement and Bayer
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Josephine Mason. Reach her on Messenger to share your thoughts on market moves: josephine.mason.thomsonreuters.com@reuters.net
ON OUR RADAR: LUFTHANSA, HEIDELBERGCEMENT AND BAYER (0558 GMT)
There's a slew of heavyweight German corporate earnings to digest this morning from Lufthansa, to HeidelbergCement to Fresenius and Bayer.
The pain over ticket prices is unlikely to ease any time soon, was the message from Lufthansa which Tuesday posted a decline in second-quarter earnings, hurt by price competition on short-haul routes in Germany and Austria as well as rising fuel costs.
HeidelbergCement, the world's No.2 cement maker after LafargeHolcim, posted a slight rise in Q2 core earnings, but said market dynamics had weakened slightly. Its shares are slightly higher in pre-market.
Bayer became the latest agricultural supplies company to be affected by flooded farms in the United States and by trade disputes, saying its full-year earnings target has become harder to reach.
Healthcare group Fresenius has raised its FY revenue target, citing solid Q2 performance of all units, even as results of its key dialysis business came in slightly below expectations.
Dialog Semiconductor's Q2 revenue exceeded expectations, the latest European chip company to beat market consensus, although dealers say its outlook which pegged Q3 revenue below Q2 levels and a decline in FY revenue was disappointing. Its shares are higher in pre-market trading in Frankfurt.
Here are your early headlines:
HeidelbergCement confirms outlook despite slightly weaker market
Bayer says 2019 profit goal becoming a stretch
Lufthansa posts drop in Q2 earnings on rising fuel costs and price wars
Fresenius raises full-year outlook after Q2 meets expectations
Fresenius Medical Care confirms 2019 targets
Top Metro investors to join forces after rejecting takeover offer
GAM Holding appoints BlackRock exec Sanderson as CEO
Sports Direct blames results delay on eleventh hour Belgian tax bill
Grant Thornton to quit as Sports Direct auditor over 674 mln euro tax bill -FT
Leoni scouts market for bidders for wire and cables division - sources
Spain’s BBVA placed under formal investigation in spying case
UBS close to settling in Italy money-laundering probe - sources
(Josephine Mason)
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THE WAIT IS ALMOST OVER (0524 GMT)
The U.S. Federal Reserve's much-anticipated July meeting is nearly upon us when the U.S. central bank is expected to cut interest rates by 25 bps, its first decline to borrowing rates in a decade. The results of the two-day gathering of the governing council which kicks off today will be announced after the close tomorrow.
Until then, dealers say they expect investors to stick to rate-sensitive assets like bonds and in equities, bond proxies like utilities and telecoms, which had a decent rally yesterday.
The cut "comes at a moment when the GDP grows above 2%, the unemployment rate is at the lowest level in fifty years, the stock market is on fire with major US indices renewing record after record and the treasury bonds rally," says Ipek Ozkardeskaya, senior market analyst at London Capital.
"In theory, the US economy doesn't necessarily need an easier monetary policy, but the Fed will point out the U.S.–China trade war and slowing global demand to justify a 25-basis-point action, along with two or more rate cuts down the road."
IG financial spreadbetters expect London's FTSE to open 22 points higher at 7,709 as the blue-chip index extends yesterday's gains after the pound deepened its losses overnight hitting its lowest since March 2017 amid growing worries about the possibility of a no-deal Brexit.
The index had its best day since February and hit its highest level in a year yesterday while the rest of the region saw only small moves.
Frankfurt's DAX to open 21 points higher at 12,439 and Paris' CAC to open 9 points up at 5,610, following gains overnight from Asia. The Bank of Japan kept rates unchanged overnight but signalled a readiness to expand stimulus if a global slowdown threatens the country's economic recovery.
(Josephine Mason)
***** (Reporting by Danilo Masoni, Josephine Mason and Thyagaraju Adinarayan)