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WHAT'S ON THE RADAR: RECKITT BENCKISER AND GERMAN CARMAKERS (0745 GMT)
With Presidents' Day in the U.S. taking Wall Street out of the picture, trading in Europe
was likely to be more muted on Monday though the deluge of company results continued.
Fresh from touching their highest level in four months on Friday, European stocks were set
to gain further ground as investors bet more progress would be made in U.S.-China trade talks
continuing in Washington this week.
Futures for the main benchmarks were up 0.1 to 0.2 percent as company results also looked,
on the whole, good.
reporting higher than expected Q4 sales growth, helped by improvements in both its health and
home and hygiene businesses.
percent, traders said, after the firm said it hoped to outperform the market this year, though
it warned of negative auto production growth.
showed car sales fell for a seventh straight month in January. Investors in the auto sector are
on tenterhooks after the U.S. Commerce Department sent its report on national security and car
imports to President Trump, setting the stage for possible tariffs.
Dealmaking continued apace with valve maker Spirax-Sarco saying it’s in talks to buy
France’s Thermocoax, and bottling company Coca-Cola HBC buying Serbian confectionary business
business for $250 million as it shifts focus from textbooks to digital.
Germany’s arms ban to Riyadh would prevent it supplying some parts for the Saudis’ Eurofighter
planes. The stock was indicated down 1-2 percent by traders.
banned the establishment or increase of short positions in the shares.
EUROPEAN STOCK FUTURES RISE AS WASHINGTON TALKS EYED (0719 GMT)
Futures are up this morning with a less busy trading day ahead: Wall Street will be shut for
President's Day, and there are no big data releases on the horizon either.
business sentiment surveys.
"After pronounced weakening, we expect generally slightly improved readings, crucial to
supporting our view that growth will improve," they write.
Minutes from the Fed and the ECB will also be an important focus, while on trade "markets
will also keep an eye on the intensified U.S.-China trade negotiations for any signs of a
In early morning results and company news, there's no shortage of interesting tidbits. In a
boost to Wirecard shares, German regulator BaFin banned investors from establishing or
increasing net short positions on the stock.
Auto parts maker Faurecia struck an upbeat tone, saying it hopes to outperform the market in
2019 while cautioning it sees auto production in general to be slightly negative this year.
The headline harvest so far:
Airbus warns of no-deal Brexit, says has spent tens of millions preparing
Germany's BaFin Bans Wirecard Short Positions
UK concludes it can mitigate risk from Huawei equipment use in 5G - FT
Vapiano Reports Deviation From 2018 Forecast
EUROPE'S RALLY SET TO CONTINUE AHEAD OF WASHINGTON TRADE TALKS (0625 GMT)
The impressive rally which pushed European shares to touch their highest in four months on
Friday is set to continue with new trade talks between the U.S. and China this week in
Washington helping investors' risk appetite.
Meanwhile, trouble could be looming for autos: the U.S. Commerce Department sent a report on
Sunday to President Trump on car imports and national security which could unleash steep tariffs
on imported cars and car parts. The department would not disclose any details of the report, but
Trump has 90 days to decide whether to act upon the recommendations.
Financial spreadbetters expect London's FTSE to open 2 points higher at 7,239, Frankfurt's
DAX to open 22 points higher at 11,322 and Paris' CAC to open 8 points higher at 5,162.
Asian share markets bounced broadly on Monday as investors dared to hope for both progress
(Reporting by Helen Reid, Danilo Masoni, Julien Ponthus)