LIVE MARKETS-What's on the radar for the European open
* European futures fall
* LVMH, DWS results in focus
LONDON, July 25 (Reuters) - Welcome to the home for real-time coverage of European equity
markets brought to you by Reuters stocks reporters and anchored today by Helen Reid. Reach her
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WHAT'S ON THE RADAR FOR THE EUROPEAN OPEN (0648 GMT)
Bracing ahead of a crucial trade meeting between top European Commission officials and U.S.
President Trump, investors were likely to take some profits on European stocks on Wednesday
after a surge in mining shares took the pan-European index to five-week highs in the previous
session.
In one of the busiest days of this second-quarter earnings season, investors have plenty to
get their teeth into. Deutsche Bank results are unlikely to deliver strong share price moves
after the rare good news for the stock was pre-released last week.
LVMH, which reported strong results and no material impact from trade tensions, could
deliver a welcome boost to the luxury sector seen as vulnerable to rising protectionism. The
stock was seen rising 1 to 2 percent.
UBS analysts on Tuesday said the sector, highly exposed to China and the U.S., risks falling
as much as 30 percent in a full-blown trade war.
One company hit by trade war fears, however, was Deutsche Bank asset management arm DWS,
which cut its 2018 inflows guidance, citing market volatility caused by rising trade tensions.
Its shares were seen falling 2 to 5 percent.
Chipmaker STMicro followed up on peer AMS’ strong results with an upbeat sales growth
forecast for the third quarter, likely to boost the shares.
The tech sector could also get a boost from M&A news in the semiconductor space with sources
saying Chinese chipmaker Tsinghua Unigroup has signed a deal to buy unlisted French chip
components maker Linxens for $2.6 billion.
In other dealmaking news, a report that Chinese conglomerate Fosun International is
considering a bid for Belgian insurer Ageas could move the shares up 5 to 7 percent, traders
said.
TV stocks were also likely movers. Britain’s ITV was seen falling 1 to 2 percent due to a
cautious outlook despite reporting a first half boosted by the World Cup and “Love Island”.
France’s TF1 meanwhile is indicated up from 2 to 9 percent after results.
(Helen Reid)
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FUTURES SLIP AS JUNCKER-TRUMP MEETING LOOMS (0615 GMT)
Futures for the main European benchmarks are down 0.1 to 0.2 percent, with the exception of
CAC 40 futures which are managing a 0.1 percent rise. It's not looking like a dramatic slide,
then, from the five-week highs reached by European stocks yesterday, but perhaps simply a bit of
profit-taking as investors await a crucial EU-U.S. meeting in Washington.
"We are in the thick of summer in the northern hemisphere, but markets are still rather
active, with opportunities to make hay while the sun shines," write Societe Generale analysts.
Among other results to keep an eye on, luxury conglomerate LVMH reported an increase in
first-half profits after yesterday's close, and Deutsche Bank's asset manager DWS cut its target
for 2018 inflows, citing market volatility caused by trade disputes.
Deutsche Bank asset manager DWS cuts 2018 inflow target on trade tensions
LVMH shrugs off China concerns in boon to luxury peers
Linde's H1 operating profit up on gases in Europe, engineering
Vodafone reports quarterly slowdown in growth
(Helen Reid)
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EARLY MORNING RESULTS ROUND-UP: DEUTSCHE BANK, STMICRO, SANTANDER (0547 GMT)
Lots of earnings for investors to digest this morning, with Deutsche Bank prominent among
banking results though it already pre-released to flag that net profit would be more than double
analysts' forecasts.
In other news, M&A in the semiconductor space with sources saying China's Tsinghua Unigroup
signed a deal to buy unlisted French smart chip components maker Linxens could boost tech
stocks.
Deutsche Bank Q2 net profit drops 14 pct
Santander posts 3 pct fall in Q2 net profit on Popular costs
STMicro Q2 sales up 18 pct on strong demand across all products
Clariant confirms 2018 outlook as H1 sales, profit rise
Telefonica Deutschland confirms guidance on steady Q2 showing
Saipem sticks to guidance after swinging to Q2 loss on one-offs
Lonza upgrades 2018 outlook, expects mid- to high-single digit growth
France's Dassault Systemes raises guidance as software sales grow
Channel tunnel operator Getlink's H1 profits rise
EFG International posts overall net new asset inflows of 2 bln Sfr
Chinese chipmaker Tsinghua Unigroup to buy France's Linxens for $2.6 bln - sources
(Helen Reid)
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EUROPEAN STOCKS TO DIP AS INVESTORS BRACE FOR TRADE MEETING (0533 GMT)
European benchmarks are set to fall slightly at the open after yesterday's stellar session
led by trade-sensitive autos and basic resources sectors. All eyes are on today's meeting in
Washington between the Trump administration and European Commission officials.
Judging by Trump's most recent Twitter activity, the meeting could be fraught. In a tweet
last night he said both the U.S. and the EU should drop all tariffs, barriers and subsidies.
Asian stocks rose modestly overnight, supported by upbeat Wall Street earnings and hopes
China's government spending would boost growth but trade tensions remained in focus.
Spreadbetters expect London's FTSE to open 4 points lower at 7,705 , Frankfurt's DAX to open
20 points lower at 12,670 and Paris' CAC to open 6 points lower at 5,429.
(Helen Reid)
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(Reporting by Helen Reid, Danilo Masoni, Julien Ponthus and Kit Rees)