Here’s What to Watch in European Stocks This Morning
(Bloomberg) -- Good morning. Here’s what we’re watching ahead of the market open in Europe, including some provocative language around Brexit, a slew of central banks and another bumper earnings day.
‘Special Place in Hell’
The next opportunity for the U.K.’s parliament to vote on the government Brexit deal, which had been expected for Valentine’s Day, could be delayed. That’s unlikely to convert the critics, including European Union President Donald Tusk and the “special place in hell” he believes is reserved for those who campaigned for Brexit without a plan. Even in a city that is the paradigm of Brexit, opinions are shifting as jobs come under threat and the economy continues to suffer.
Crude prices rebounded somewhat overnight and are trading relatively flat this morning after U.S. inventories on Wednesday showed surprisingly strong gasoline demand and a drawdown of heating fuels, helping to quell global fears about oversupply. European stock futures are pointing a touch lower following a muted day on Wednesday and Asian stocks, with plenty of markets still closed for the Lunar New Year, were mixed on earnings.
Central Banks Bonanza
The Bank of England will announce its latest interest rate decision. But that will be overshadowed by any commentary either in the initial announcement or at the press conference afterward about the state of U.K.’s Brexit-clouded economy. The European Central Bank, meanwhile, is not certain it will offer new long-term loans to banks at its next meeting in March. The BOE is the main event, but we’ll also have policy decisions from Romania and the Czech Republic, plus Mexico later in the day.
Bumper Earnings Day
It’s another very busy day in European stocks. French names top the slate with oil major Total SA and pharma firm Sanofi SA due to report. Banks are busy too, with Societe Generale SA and UniCredit SpA already out. Also cast an eye over the numbers and outlook from steel industry bellwether ArcelorMittal, one of the most sensitive sectors to U.S.-China trade concerns, plus more from the auto industry with Fiat Chrysler Automobiles NV, a slew of insurance stocks led by Zurich Insurance Group AG and drinks producer Pernod Ricard SA.
German industrial production numbers are coming up in the wake of a slump in factory orders which has increased jitters about recession. U.K. house prices are coming and, given the recent data, are unlikely to be cheery. And in the U.S., we’ll have earnings from Twitter Inc., tobacco giant Philip Morris International Inc. and cereals behemoth Kellogg Co.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours
- JPMorgan is advising investors to boost risk positions and unwind their hedges
- Global demand for bonds has surged. Just take a look at Italy’s sale yesterday
- Inside the German government’s push to save Deutsche Bank
- Scientists are working hard to make marijuana more like booze
- Google’s experimental health-care arm is making a data-driven play to tackle the opioid epidemic
- An oral history of the day Wall Street’s “fear gauge” doubled, dubbed “Volmageddon”
- The sommeliers of everything, from mustard to hot sauce to honey
©2019 Bloomberg L.P.