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:

Banks

Third-quarter bank earnings have begun. Deutsche Bank AG reported net revenue just shy of the average analyst estimate this morning, while saying full year revenue will be slightly lower than last year. Meanwhile, Nordea Bank Abp reported profit for the third quarter that fell short of analysts’ expectations, adding that the period was “challenging.” Barclays Plc is due to report before the open, while U.K. challenger Metro Bank Plc also updates.

Chip Carnage

Having taken a beating on Tuesday after warnings from AMS AG and Atos AG, the European tech sector is likely headed for another disappointing day after gloomy updates from U.S. groups Texas Instruments Inc. and MKS Instruments Inc. Texas Instruments has the largest number of customers and broadest range of products in the industry, so its disappointing guidance is more likely to have a bellwether effect and could weigh down Europe’s chipmaking industry.

Saudi Response

U.S. President Donald Trump said he’ll pass responsibility to Congress for responding to the killing of journalist Jamal Khashoggi at the Saudi consulate in Istanbul. He later criticized conflicting accounts from Saudi Arabia over what happened to Khashoggi as “one of the worst” cover-ups in history. Congress has been notably more critical of the Saudi explanation for Khashoggi’s death, so this could increase concerns about how harsh the U.S. response will be, potentially keeping pressure on any Saudi-exposed stocks and on the local Saudi stock market.

Beer

We already know that soccer’s World Cup and Europe’s glorious summer weather boosted beer sales, as pub companies and grocery-sales data compilers have said so. But this morning we’ll get an idea of the impact on brewers’ earnings when Heineken NV posts volume figures. Watch shares of Carlsberg A/S and Budweiser maker Anheuser-Busch InBev NV for any potential read-across.

Riksbank

After the Nordic region’s biggest bank released results earlier, the Swedish central bank is due to announce its rate decision later this morning. All analysts surveyed expect the Riksbank to remain on hold, but the main risk scenario is that the central bank raises the probability of a hike in December. That could spark a rally in the Swedish currency, also affecting the nation’s equities.

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