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LIVE MARKETS-Weekend plans: meditate on Draghi's bubble, brace for "Super Monday"

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:


Not the best way to kiss markets good night before the weekend!

Mario Draghi's statement about "mild signs" of overvaluation in the euro zone financial and property markets sent jitters through markets late this afternoon, and probably wasn't what traders wanted to hear ahead of a potential Brexit "Super Monday" of trading.

It's impossible to know what will happen in the UK parliament tomorrow, but there's little doubt that the Brexit saga has never disappointed so far in terms of drama. That has tended seep into British and European asset classes.

Exposing perhaps the impossibility to call Saturday's vote on the Brexit deal struck by Johnson in Brussels, the FTSE 250, a good gauge of Brexit greed and fear, closed at 0% precisely.

The rest of Europe is slighty in the red.

Here's a nice poll from Reuters' Markets team which might be useful for some Monday homework:

Brexit nod from parliament to unleash 4% rally in pound, send UK plc to record high

And here's your closing snapshot:


A profit warning sent Renault on track for its worst day in over three years but surprisingly, Brexit or the trade war weren't to blame.

Renault said turmoil in emerging markets - Argentina and Turkey - caused the setback, fuelling fresh political worries to investors who so far were mainly concerned with the spat between the U.S. and China and the UK's ongoing saga to leave the EU.

Renault's ability to drag European shares does exacerbates worries about slowing global growth.

For James Dowey, fund manager at Lion Trust, the global synchronised slowdown narrative is worrying.

Dowey says the most asked question from investors lately has been: "Will our portfolio be resilient in case of a global recession?"

(Joice Alves)



A final Brexit deal approved by the parliament could bring fresh capital to European equities, but it is too soon to declare love to the UK after the three-year impasse has sapped companies' appetite and financial firepower to invest in growth.

Berstein says a final Brexit deal if approved tomorrow will bring capital into European equities and it's moving to overweight for the region, but it has cautioned that earnings growth is still expected to be below zero over the next 12 months. For the UK, the striking of a deal means that UK equities are no longer "uninvestable," the broker says.

The only outflow from UK equities over the last 18 months has been outflows from active funds. Passive UK funds have remarkably seen no material selling, whereas passive funds for continental Europe saw strong selling, which has just started to turn, Bernstein says.

Others agree with the Bernstein take.

"You need to take into account that productivity numbers in the UK are very poor compared to the U.S.," says James Dowey, fund manager at Lion Trust. His team reduced its UK weighting over the past few years to less than 5%, and put more capital into the market again, he says, but not quite right now.

After three years of little to no business investment, it will take more than the Brexit deal to lift intestest for the UK.

(Joice Alves)



Warnings from Renault, Thales and Danone have cast a pall over European stocks this morning, sending the STOXX 600 down 0.1% and reinforcing concerns about the health of corporate Europe as Q3 earnings season kicks off and the U.S.-China trade spat dents demand for everything from hotel rooms to cars.

Renault also blamed turmoil in Turkey and Argentina, posing a fresh headwind for companies.

The European automobiles and auto suppliers index is lagging the broader market, down 1.5%, with Renault shares falling more than 13$% to their lowest more than six years.

The news has dragged the rest of the sector and its supply chain with it - tyre companies, parts makers and the car manufacturers from Continental to Pirelli are at the bottom of all the major euro-zone bourses.

In contrast, Getinge shares are soaring, rising more than 16 % and top gainer on STOXX 600 at highest since April 2016 after the Swedish medical technology group reported better-than-expected 3Q profits.

One of the biggest fallers in the Italian market was Leonardo, after French competitor Thales' sales warning.

Joice Alves



It is not all about Brexit today, but a lot of it is.

European bourses are expected to open slightly lower this morning after China posted its weakest growth in nearly three decades, countering some of yesterday's positive mood that saw European stocks hit one-year highs after the UK and European Union finally struck a Brexit deal.

While the headline GDP number for China was weaker than expected confirming that the spat between China and the U.S. continues taking a toll on the world's second largest economy, it stirred some hopes of further government stimulus and investors may also draw comfort from the strong industrial output and inline retail sales numbers.

It was enough to knock Asian stocks lower overnight and dealers expect a risk-off day here in Europe.

Investors will be nervous ahead of the showdown in parliament tomorrow as lawmakers vote on PM Johnson's Brexit deal. One dealer says it's be another day of "headline roulette" and getting the deal passed will be seen as an uphill struggle for the PM.

Back in Europe, financial spreadbetters IG expect London's FTSE to open 9 points lower at 7,173, Frankfurt's DAX to open 18 points lower at 12,637 and Paris' CAC to open 3 points lower at 5,670. (Joice Alves)


(Reporting by Danilo Masoni, Joice Alves, Josephine Mason, Julien Ponthus and Thyagaraju Adinarayan)