Here’s What to Watch in European Stocks This Morning

(Bloomberg) -- Good morning. Here’s what we’re watching ahead of the European market open, including a crushing defeat for the U.K. government on its Brexit proposal, a confidence vote in Greece and turmoil at the top of European banks and carmakers.

432 to 202

U.K. Prime Minister Theresa May suffered a huge defeat in parliament on her Brexit plan, prompting a no-confidence motion from Labour and horror within the European Union. The chancellor is attempting to quell business fears about the potential the U.K. will crash out of the bloc without a deal, and a sixth of Britons are hoarding food and medicine to prepare for the worst. Its looks bleak for May and the likelihood the U.K. will have to extend the March 29 departure deadline seems to be increasing. Brace for a volatile day in U.K. stocks, particularly these ones.

Greek Confidence and Turkish Rates

Significant days for ruling political parties in Europe are not exclusive to the U.K. Greece will be holding a confidence vote in its government after the ruling coalition broke down over the weekend in a disagreement about a name dispute with Macedonia. Another of Greece’s neighbors, Turkey, will be in focus too as its central bank meets. It’s widely expected to stay on hold but there are still some minor jitters that the bank might go for a “kamikaze” cut. And Italian Deputy Prime Minister Matteo Salvini slammed the European Central Bank, accusing it of attacking the Italian financial industry.

Santander Reversal

A dispute over pay forced Spain’s Banco Santander SA to reverse course on its plan to appoint UBS AG dealmaker Andrea Orcel as its next chief executive. The reaction to the about turn by Santander, announced after the market close on Tuesday, will be interesting to see. French carmaker Renault SA, meanwhile, is said to be ready to replace chairman and CEO Carlos Ghosn as he languishes in jail in Japan.

Crude Volatility

After concerns that oil was overheating after reaching a bear market, crude rose again on Tuesday as traders estimated U.S. inventories, due today, will decline and after China made further moves to shore up its economy. Brexit will dominate the day for European stocks but the oil story is far from over and if American stockpiles do decline for the sixth week out of seven, the oil and gas sector may get a lift while all around lose their heads.

Blockbusters and Textbooks

Cineworld Group Plc will detail how popular the Christmas slate of movies has been for its cinemas. Investors will focus on the outlook: The slate of releases in 2019, including sequels in the Avengers, Fast & Furious and Star Wars franchises, has had analysts predicting a stronger year ahead. Education firm Pearson Plc, the most unloved stock in the FTSE 100 among analysts, will look to address concerns about a structural decline in its key U.S. college textbook market.

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