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:

U.K. Trade

The U.S. is threatening to block the U.K. from a 46-nation public procurement agreement, which would leave British companies unable to access a $2 trillion market after the country leaves the European Union. A move like that could leave British companies unable to bid for government contracts, including in the $837 billion U.S. market. Watch for a reaction in companies like Serco Group Plc and Rolls-Royce Holdings Plc.


Every day you think things will calm down, every day the market moves again. Finance Minister Giovanni Tria’s comments to parliament on Tuesday sent Italian government bond yields spiraling wider again, only for everything to calm down in the afternoon and help the FTSE MIB have its best day for a fortnight. There can be no discounting that more headlines from Italy’s government or from the EU will continue to cause shifts in bond yields as the week progresses, taking stocks with them. Indeed, Tria is set to address parliament again on Wednesday.

Luxury goods

LVMH, the luxury giant which has everything from Italian jeweler Bulgari to champagne brand Veuve Cliquot under its umbrella, released results likely to reassure the sector. Luxury goods had sold off recently amid concerns about growth and customs caps in China, but LVMH’s results indicate Chinese demand for Louis Vuitton handbags and Dior make-up remains strong. Still, LVMH often beats estimates, so the real news may come when analysts are able to press management about current Chinese spending in a call later on Wednesday.


EU governments have proposed a tougher car emissions cap for 2030, bypassing German resistance and likely putting pressure on the bloc’s carmakers on Wednesday. EU environment ministers set a CO2-reduction target of 35% compared to 2021 levels, compared to the maximum 30% cut Germany had been pushing for.


The U.K.’s PageGroup is to update on trading. The sector is in the middle of building a picture of the recruitment environment, and a surprise to the upside or downside from Page could read-across to domestic rival Hays. If the surprise is in PageGroup’s European business, that could also have an impact on its continental rivals like Adecco and Randstad.

British pubs

Marston’s will give an update on how much beer was consumed over the hot summer months in Britain. A good set of numbers may boost others in the sector, including Greene King, Fuller Smith & Turner and Ei Group. Equally, any disappointment on the volume of booze consumed by Brits could sap sentiment in the sector.

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