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.

Back to Brussels

Theresa May managed to win her confidence vote, albeit with more than a third of her own party voting against her. That demonstrates the size of the task the prime minister faces in getting support for her Brexit deal at home, let alone when she heads back off to meetings with European leaders on Thursday. The situation has not really changed for the potential outcomes Brexit could bring and only a modicum of stability has been provided to a still very uncertain situation. Keep watching the pound and U.K. stocks.

End of a Bond Buying Era

The European Central Bank’s flagship stimulus program is about to end and the attention at today’s meeting is likely to turn to the central bank’s views on European economic growth, global trade tensions and the fiscal crisis in Italy, among other risks. The ECB is not the only central bank on the slate for Thursday, with decisions due in Switzerland, Norway and in Turkey, which will be worth watching for any signs the central bank is planning an interest rate cut in the near future.

2.04 Percent

Italy’s government has proposed a cut to its 2019 budget deficit target to a very specific 2.04 percent, a pretty significant concession in comparison to the 2.4 percent target it had originally announced and which had so riled the European Union. Now we await a response from the European Commission on whether this will be enough to approve Italy’s budget plans, or whether the wrangling will go on. As ever, watch the open for Italian government bonds, which will feed into the FTSE MIB stocks benchmark.

Christmas Vacation

Tourism and travel group TUI AG is due to update with a report that comes in the wake of the beating dealt to rival Thomas Cook Group Plc. TUI is a bigger business than Thomas Cook but many of the same drivers could affect it, particularly the appetite among consumers to travel at a time of great political turmoil across Europe and specifically how many are booking trips to get some winter sun.

Still Delivering?

The best performing stock in the Stoxx 600 index in 2018, Ocado Group Plc, will provide an update on trading. Shares have doubled this year, driven by the grocery delivery firm signing a series of deals with international partners, a development that had been keenly awaited for some time by its investors. The focus will be on how those deals are going and on how much investment they will require, in addition to how well the firm is doing on the top line.

©2018 Bloomberg L.P.