Here’s What to Watch in European Stocks This Morning

(Bloomberg) -- Good morning. Here’s what to watch ahead of the market open in Europe, including a bellwether for the U.S. construction sector, companies that feed airport passengers, and the latest economic data from the euro zone. 


U.S. equipment hire firm United Rentals Inc., a bellwether for the construction industry, reported a 20 percent jump in fourth-quarter revenue after the close in New York, sending the stock higher in after-hours trading. Keep an eye on companies exposed to the sector, including United’s close peer Ashtead Group Plc and heating and plumbing specialist Ferguson Plc, as both FTSE 100 members earn close to 90 percent of their revenue in North America. 


French catering company Elior Group reported 3.5 percent revenue growth in its fiscal first quarter and said it’s confident it can meet full-year targets. Shares of the company that runs concessions in places like airports, train stations and hospitals have slumped this week amid concerns that the Yellow Vest protests could have hurt domestic revenue. Sodexo, also French, and the U.K.’s Compass Group Plc could be impacted this morning. 

You Again

Chipmaker news won’t stop coming. U.S. titan Texas Instruments Inc.’s first-quarter numbers matched its already reduced expectations on Wednesday. French- and Italian-listed STMicroelectronics NV reported net income for the fourth quarter that beat the highest analyst estimate, though it’s predicting a 21 percent sequential drop in revenue for the first three months of the year. The updates come amid continued reports of demand reductions from companies that put the little components inside products such as computers and Apple Inc.’s iPhone.


Today’s data schedule  includes purchasing manager indexes from France, Germany and the euro area, after the International Monetary Fund cut its forecast for 2019 growth in the currency bloc on Monday. European Central Bank President  Mario Draghi may acknowledge the recent softening of macroeconomic statistics at his post-rate decision press conference later, according to Bloomberg Intelligence. 

Delay Signals

The risk of a no-deal Brexit appears to be receding. Senior figures in the French and German governments said they’d be open to extending the Brexit deadline as momentum builds for a delay in the U.K. Parliament. The pound was steady overnight.

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