* STOXX 600, DAX inch up
* Tech jumps after STMicro results
Jan 24 - Welcome to the home for real-time coverage of European equity markets brought to
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"THE SHORT ON EUROPE MAY BE OVER BUT..." (1034 GMT)
... but it's still too early to go long.
than 70 individual investors in North America.
And their view may really tip the balance for Europe as U.S. is "the key swing net buyer of
European equities", UBS says.
While valuations now look attractive to investors across the pond, the macro backdrop,
exposure to a slowdown in emerging markets and Brexit remain a reason of concern.
"Many saw Europe as cheap (particularly the banks), but were looking for catalysts," UBS
adds, listing four potential triggers:
* stabilisation in Eurozone PMIs
* improved China data
* détente between the US and China over trade
* more clarity around Brexit
After some euphoric buying in the first half of 2017 in connection to the French elections
U.S. investors have unwound their net buying, as you can see in the charts below.
OPENING SNAPSHOT: CHIPS AHOY! (0857 GMT)
European shares are eking out small gains in early deals after yesterday's lacklustre
session, as STMicro provided some much-needed cheer among the chipmakers after reporting
better-than-expected profit margins.
WHAT'S ON THE RADAR FOR THE OPEN (0749 GMT)
European stocks are set to inch higher in subdued trading as investors awaited an ECB
meeting at which Mario Draghi’s comments on Europe’s sharp slowdown will be carefully dissected.
Results will keep trading active, though, with STMicro, Tod’s, and Fevertree among those
Italian fashion group Tod's is seen falling 3-5 percent after it reported a fall in
like-for-like sales as the luxury sector suffers from slowing economic growth in Europe and
China. Tod's blamed a worsening of performance in Italy and the rest of Europe.
Chipmaker STMicro said it expected first-quarter sales to fall by 21 percent, cementing a
chipmakers delaying orders. Its better-than-expected Q4 margin should help the stock rise by 1
percent, though, traders said.
Panalpina is called 3 to 5 percent lower after Kuehne & Nagel said a takeover offer from
AIM investor darling Fevertree, which produces premium mixers, is seen jumping 5-10 percent
after saying it expects its full-year revenue to be almost 40 percent higher, driven by strong
demand in the UK.
seen rising around 1 percent, traders said, after daily Frankfurter Allgemeine Zeitung reported
Germany's government is in talks with representatives of Commerzbank and private equity firm
Cerberus on a potential merger between Deutsche Bank and Commerzbank.
Finance Minister Olaf Scholz and Deputy Minister Joerg Kukies had held a number of meetings
on the issue over the last months, the paper reported.
EUROPEAN FUTURES EDGE HIGHER (0714 GMT)
Futures for the FTSE 100 and euro zone benchmarks are inching higher, indicating stocks will
make an attempt at gains this morning, but how long they will hold onto them is unclear given
the myriad worries stalking investors at the moment and an ECB meeting which could be eventful.
"Expect a focus on forward guidance and reinvestment/expansion plans of the LTRO/TLTROs,"
writes Chris Bailey, European strategist at Raymond James.
"Tone all-important here as the market is currently continuing to push out the date of an
ECB rate rise."
UK results are starting to come in with AIM darling Fevertree in focus as well as, among
EUROPEAN HEADLINES TO WATCH: STMICRO, TOD'S, GJENSIDIGE (0652 GMT)
It's the first bumper Thursday of Europe's earnings season today and there's no shortage of
preparations and emissions lawsuits.
The chipmaker will be particularly closely watched after the tech sector came out of favour
late last year as the U.S.-China trade war ramped up a clash over technology and IP. STMicro
said it saw Q1 sales falling by about 21 percent, joining peers predicting a slowdown.
Italian fashion group Tod's reported a fall in like-for-like sales as the luxury sector
suffers from slowing economic growth in Europe and China. Tod's blamed a worsening of
performance in Italy and the rest of Europe.
Norwegian insurer Gjensidige said its 2018 was "significantly impacted by extraordinary
weather conditions" and that even when adjusting for these, it was "not satisfied" with its
We'll see the next step in the Carlos Ghosn saga today with Renault's board meeting to pick
Airbus adds to a long list of companies sounding the alarm about a no-deal Brexit, with
Chief Executive Tom Enders warning in a video released on the planemaker's website that it could
shift future wing-building out of Britain in the absence of a smooth exit.
And lawyers suing Fiat Chryself in a U.S. case over excess emissions are seeking more than
Here's your sweep of headlines:
Airbus CEO sees 'harmful decisions' for British presence in a no-deal Brexit
Renault board meets to choose successor to Ghosn
Lawyers suing Fiat Chrysler in U.S. diesel case seek over $100 mln
Tod's like-for-like sales fall 3 pct in 2018
STMicro sees Q1 net revenues sink by 21 pct from previous quarter
Activist target Pernod boosts board independence with new role
Denmark's DSV to keep hunting big targets after Panalpina - CEO
Elior Group Q1 Consolidated Revenue Increases To 1.75 Billion Euros
SUBDUED TRADING TO CONTINUE AS INVESTORS EYE ECB (0618 GMT)
Spreadbetters don't expect any fireworks this morning from European shares, but a slew of
earnings reports will keep trading busy at least at the stock level.
Today's ECB meeting is also eyed as a potential catalyst for markets which have seen subdued
trading the past few days.
"The first ECB meeting of the year (today) is unlikely to lead to any material changes to
assessment should move further to the downside."
"The state of the economy is of immediate concern for the ECB at the start of the year,"
Asian shares were subdued overnight as political uncertainty in the United States and
worries about weakening global economic growth left investors wary of riskier assets.
Frankfurt's DAX to open 9 points lower at 11,062 and Paris' CAC to open 2 points lower at 4,838.
(Reporting by Helen Reid, Danilo Masoni, Julien Ponthus and Josephine Mason)