* European shares erase opening losses
* Asian shares dip on growth, trade worries
* But Carrefour shares boosted after Q4 update
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: firstname.lastname@example.org
STRESS TEST INSURERS? THEY PASSED! (1110 GMT)
Insurance stocks have outperformed both the market and their bank cousins in 2018, helped by
good fundamentals and relatively cheap valuations, but there are worries creeping in that a fall
in equities and credit downgrades could hurt them.
But should investors really be concerned?
HSBC analysts Dhruv Gahlaut and Thomas Fossard don't believe so and to be sure they have
stressed tested Europe's largest insurance groups.
The result? Passed! The sector is well positioned to manage an extreme event, they say.
"Our stress test shows that the average solvency ratio falls to 146% from 201% assuming a
50% fall in equities, 100 bps lower interest rates and credit migration (of one letter-rating
downgrade across the entire corporate portfolio)," they write.
"We also stress test our earnings estimates and highlight that 2019e normal DPS cover falls
to 1.4x from 1.9x, when assuming 2ppts deterioration in non-life combined ratio, 50 bps drop in
non-life yield and corporate bond defaults (similar to the maximum rate observed since 1940"
On top of that the sector still trades at the lower end of its 10-year discount to the
market, EPS revisions for 2019-20 are positive since the start of 2018, and share prices offer
total dividend yields of 7 pct for 2018-19.
OPENING SNAPSHOT: POOR UPDATES DRAG EUROPEAN SHARES LOWER (0842 GMT)
European shares are down for a third straight session as a string of poor earnings updates
including from ASML, a major supplier to the world's largest computer chipmakers,
added to concerns over trade and global economic growth.
In early deals the pan-regional STOXX 600 was down around 0.4 percent, while other regional
benchmarks were also slightly in the red. Trade-exposed autos were the biggest sectoral
fallers, down 1.3 percent, while defensive sectors such as utilities outperformed.
ASML (down 3 pct) was the biggest negative weight on the STOXX 600, while among top fallers
pct) which reported disappointing results.
Not all updates were that bad.
confidence over its strategy plan and it seems that the impact from the yellow vest protests in
France was not as bad as feared.
Here's your opening snapshot:
A FEW NASTY FALLS EXPECTED AT THE OPEN (0754 GMT)
European shares are set to begin morning trading lower than they closed yesterday as a combo
from Wall Street to Asia.
A new batch of corporate results will animate the session and so far there are already a few
stocks indicated with strong losses at the open, notably Metrobank down up to 10 percent after a
Premarket indications show little love and a likely fall for ASML which said it sees 2019
sales growth despite delay in orders. French payments business Ingenico is also seen retreating
after a warning on core profit.
to turn the page.
Here are a few headlines:
French payments business Ingenico warns on core profit
Carrefour confident over overhaul despite Q4 'yellow vests" hit
Deutsche Boerse sees adjusted net profit growth of around 17 pct in 2018
Supermarket retailer Ahold Delhaize's Q4 sales meet expectations -
ASML sees 2019 sales growth despite delay in orders
Renault convenes board to turn page on Ghosn era
Antofagasta Q4 copper output rises 23.7 pct
FUTURES DIP (0713 GMT)
European futures have opened roughly as expected, that is in negative territory but without
any dramatic moves - yet.
Q4 headlines are starting to accumulate on our screens but don't seem to have what it would
take to drastically change the mood or paint Europe Inc in a new optimistic colour.
Here's your snapshot:
NO THRUST FOR EUROPEAN STOCKS (0626 GMT)
From global growth worries to trade war concerns, there just ain't much in store to prop up
European shares after Asia and Wall Street ended their session without any sudden new-found
faith in risky assets.
Frankfurt's DAX and Paris' CAC, down 13 points and 16 points respectively.