Here's What to Watch in European Stocks This Morning

(Bloomberg) -- Good morning. Here’s what we are watching ahead of the market open in Europe:

Trump Terms

The rebound in Asian equities was given a further boost by media reports saying President Donald Trump wants to reach an agreement on trade with Chinese President Xi Jinping at the Group of 20 nations summit in Argentina later this month. Trump has asked key U.S. officials to begin drafting potential terms, according to people familiar with the matter. It followed Trump saying on Twitter that he’d had a “long and very good conversation” with Xi. Basic resource companies, automakers and semiconductor firms could be among the biggest beneficiaries this morning.

Apple Spooks

Apple Inc. gave a disappointing forecast for holiday period sales, while also spooking investors by saying it will end publication of iPhone unit sales. Shares of the company, the last of the FAANG stocks to report this earnings season, fell about 6.5 percent in after-hours trading. Apple’s sprawling supply chain in Europe might be impacted. Watch European semiconductor firms like German-listed Dialog Semiconductor Plc, and French-listed STMicroelectronics, as well as the broader technology sector for a sentiment impact.

Oil Low

Brent crude futures touched their lowest level since August overnight, amid signs U.S. supply is accelerating and on speculation that American sanctions against Iran won’t succeed in reducing exports to zero. The benchmark later pared some of the loss on a report saying the U.S. has agreed to let eight countries keep buying Iranian oil. Two U.S. heavy-weights, Exxon Mobil Corp. and Chevron Corp., report quarterly numbers during the European open Friday.


Amsterdam-based staffing firm Brunel International NV, which supplies workers to industries including engineering, finance and administration, is due to give a sales update later. The release will also be of interest to investors in peers like U.K.-based Hays Plc and Switzerland’s Adecco Group AG, as their businesses overlap in key European markets like Germany. The sector slid two weeks ago after U.S. recruitment firm ManpowerGroup Inc. said the outlook in its European markets was particularly challenging.

More Jobs

It’s non-farm payrolls day in the U.S., marking the last jobs report release before the midterm elections next week. ADP Research Institute’s report showed higher than expected jobs growth on Wednesday, with broad-based strength across sectors. But markets won’t be particularly reactive to a change in job growth, given October’s data was probably distorted by hurricanes, according to analysts at Citi. The focus will again be on average hourly earnings, the bank said in a note.

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