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:

Gibraltar and Fish

Much to digest from the draft agreement text between the U.K. and the European Union, with Prime Minister Theresa May fending off criticisms from Brexiteers on the backstop and the jurisdiction of the courts in the post-Brexit Britain the plans propose. As we head toward a crunch summit on Sunday, there remain issues over Gibraltar and fishing regulation, but it still looks likely that May’s biggest challenge will be getting the deal past her parliamentary colleagues. Keep watching the pound and U.K. stocks.

Trade Optimism?

U.S. President Donald Trump and Chinese leader Xi Jinping have indicated they are both ready for a highly anticipated meeting at the G-20 summit next week, potentially providing a little light at the end of the tunnel for those stocks battered by the trade tensions between the two. Trump told reporters that China “wants to make a deal” and added he was “very prepared” for the talks, indeed that he’d been “preparing for it all my life.” Watch trade buffeted sectors like miners, semiconductors and autos.

Nissan-Renault Saga

The cracks in the relationship between Nissan Motor Co. and Renault SA sparked by the former’s dismissal of Carlos Ghosn and the very different reaction in France are showing no signs of healing. Reports this morning suggest Nissan is now seeking a review of the shareholding structure of its alliance with Renault, signs indeed that the balance of power may be shifting toward the Japanese partner.

Oil Glut Blues

Oil is headed for a seventh weekly loss amid ongoing signs of a global supply glut driven by growing stockpiles in the U.S. WTI is trading around 53 dollars a barrel and Brent is heading closer and closer to the 60 dollar threshold. Oil stocks in Europe are lower but have held up relatively well this week given the slippage in crude. It’ll still be worth watching for any further weakness or any impact this might have on strategy.

Black Friday

Thanksgiving is over and while Black Friday is now more of a season of retail discounting than a single day, today will be the most intense for snapping up bargains. Any indications of how the day is going might impact some retail names, though obviously with the acknowledgment that margins may well be eaten into for merchants snipping three-quarters off the price of everything from televisions to espresso makers.

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