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:

OPEC vs Trump

Oil ministers from the OPEC nations get together in Vienna at a time of heightened volatility in the industry and after OPEC+, including Russia, recommended a production cut, albeit without providing any details. Donald Trump reiterated his feelings on the subject via Twitter on Wednesday, calling for the oil cartel to keep crude flowing and put a lid on the oil price. He may not be pleased by what OPEC decides to do. Have your sights trained on oil and gas stocks for the next two days, it could get choppy.

Bulls vs Bears

U.S. stock index futures plunged overnight, indicating the rout which decimated the market on Tuesday is likely to continue and will probably drag Europe with it. The question gripping markets is whether the bull run has peaked and is now over. But a growing chorus of investors thinks the upside risk is being overlooked and that being too bearish is a hazardous position to take. Much to ponder as we look towards another macro-driven, likely down day in European stocks.

Brexit Lifeboat

The situation for Prime Minister Theresa May, pilloried from all sides over her Brexit deal, has never been more bleak. But for markets, the mood appears to be lifting as the developments in recent days indicate the chance of a no-deal Brexit are fading, while the probability of a second referendum on the U.K.’s European Union membership is increasing. May is now seeking a lifeboat, searching for compromise to avoid what would be a crushing and damaging defeat when parliament votes on her deal next week.

Huawei Arrest

Just as it looked like investor fears about trade tensions could start on the path to healing, the CFO of Chinese telecoms group Huawei Technologies Co. was arrested in Canada on a U.S. extradition request. The arrest “comes at a bad time when tensions between China and the U.S. over trade at such a delicate stage, and could derail whatever was agreed at the weekend between President’s Xi and Trump,” CMC Markets U.K. Chief Market Analyst Michael Hewson said.

Ted’s Bogus Journey

U.K. fashion retailer Ted Baker Plc has had a torrid week and will be closely watched on Thursday for all the wrong reasons. After allegations emerged about the conduct of its chief executive and founder, its shares dropped by more than a fifth in two days. More surfaced on Wednesday. Today will provide an opportunity to take a look at how day-to-day trading is going for the firm, but all eyes are likely to be on whether it will have any response to the allegations beyond the investigation already announced.

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