LIVE MARKETS-UK stocks lag Europe as confidence vote looms

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

UK STOCKS LAG EUROPE AS CONFIDENCE VOTE LOOMS (0916 GMT)

European stocks are gaining after Trump sounded upbeat about a trade deal with China, but

hiding under the surface are some big moves in retailers Inditex (Amsterdam: IT6.AS - news) , Superdry, and Dixons Carphone (Frankfurt: CWB.F - news) ,

as well as in UK stocks which are reeling from the announcement of a vote of confidence in PM

May.

Defensive utilities and real estate stocks are the top-gaining sectors, up 1.5 and 1.4

percent, while retail is the worst-performing sector as weak results from Zara owner Inditex

weigh, sending the Spanish stock down 6.2 percent and dragging Swedish rival H&M down 3.3

percent too.

The FTSE 100 is up 0.8 percent while euro zone stocks are up 1 percent as

investors brace for the looming vote of confidence in PM May.

Sterling, however, is up 0.4 percent now having tumbled sharply overnight, as traders seem

to be edging towards a positive outlook on the vote, which, if she wins it, could quash hard

Brexiteers for good.

Nursing the biggest losses are Superdry (down 32 percent) after a profit warning, and Dixons

Carphone (down 10.9 percent) after it fell into a loss in the first half.

(Helen Reid)

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ON THE RADAR: RETAIL GLOOM AND A LEADERSHIP CONTEST FOR MAY (0756 GMT)

So it begins! A leadership challenge has just been launched against May but there is no

visible impact on stock futures at the moment.

There is some gloom in the retail sector with Zara owner Inditex, Dixons and Superdry seen

falling at the open with disappointing trade updates.

Other than for that it seems for the moment that European stocks markets seem set a second

straight day of gains as sentiment towards the trade war shifts for the better.

Other developments with Credit Suisse (IOB: 0QP5.IL - news) announcing a 1.5 billion buyback and a dividend

increase and the European Commission opening an in-depth enquiry into the Vodafone/Liberty deal.

EU competition authorities are also in the news with Alstom (LSE: 0J2R.L - news) and Siemens (BSE: SIEMENS.BO - news) proposing new

measures to address competition concern.

Meanwhile the Renault (LSE: 0NQF.L - news) /Nissan/Ghosn saga continues to unfold.

In France many blue chips are queuing up to announce year-end bonuses to help Macron defuse

Yellow Vests protests.

(Julien Ponthus)

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EUROPEAN FUTURES RISE AS TRADE OPTIMISM GROWS (0708 GMT)

Bourses in Europe seem set for a second day in the black as sentiment towards the trade

dispute between the United States and China shifts for the better.

Futures, as you can see, are quite unequivocally in positive territory, even after

yesterday's rally:

(Julien Ponthus)

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TRUMP TRADE TALK TO BOOST EUROPEAN SHARES (0637 GMT)

Trump told Reuters (yep that's blatant self-promotion again and here's the link:

) he is upbeat about a trade deal with China and the least we can say is that global

markets have taken notice.

According to IG (Frankfurt: A0EARV - news) and CMC Markets (LSE: CMCX.L - news) , indications from financial spreadbetters London's FTSE up

56-62 points, Frankfurt's DAX 95-105 points higher and CAC to rise between 42 and 46 points.

Just a quick word to say that December 12 marks a full year that our colleagues Wa Lone and

Kyaw Soe Oo have spent in prison in Myanmar.

Both are among a group of journalists names by Time Magazine "Person of the Year" for their

work in “the War on Truth.” Check it out here: https://bit.ly/2GcZE7L

#FreeWaLoneKyawSoeOo

(Julien Ponthus)

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