* European stocks rally continues as industrials, miners rise
* Asian shares crept up towards record highs
* Morrisons gains after Xmas trading update
Jan 9 (Reuters) - Welcome to the home for real time coverage of European equity markets
brought to you by Reuters stocks reporters and anchored today by Helen Reid. Reach her on
Messenger to share your thoughts on market moves: helen.reid.thomsonreuters.com@reuters.net
GLOBAL EARNINGS REVISIONS AT ALL-TIME HIGH - CITI (1024 GMT)
The fourth-quarter earnings season is getting closer and investors have never been so
upbeat. Citi says global earnings revisions remained positive this week (+41%) for the
fourteenth week in a row, recording the best weekly upgrades since their data started in 2000.
High earnings revisions are usually seen at the start or end of the economic/market cycle,
strategists at the U.S. bank led by Robert Buckland note, but the good news this time is that
their "Bear Market Checklist" says it's still too early to call the end of this cycle.
Little wonder then that the global stock market rally isn't losing momentum as 2018 gets
underway.
(Danilo Masoni)
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ABLYNX: ARE WHITE KNIGHTS REALLY QUEUING AT THE GATES? (0959 GMT)
Because looking at the share price jumping another 11 percent this morning, it sure seems
like a lot of merger-arbs are comfortable putting their money, and a lot of it, on a sweetened
bid or a rival offer.
A trader said this morning that speculation in the Belgian press about different suitors,
such as the likes of Sanofi or AbbVie was among the reasons lifting Ablynx to
reach 34.3 euros, over ten percent above Novo's 30.5 euros offer.
Asked to comment yesterday about the market paying a premium on Novo's offer, the trader
said: "the problem with biotech is that you need to be comfortable with valuations".
Below, a taste of the action around Novo's offer:
(Julien Ponthus)
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POSITIVE VIBES FOR UK GROCERS (0916 GMT)
It's a decent day for grocers, with Morrisons' shares up close to a three-month high, and
Kantar data showing that Tesco was the best performer over Christmas, boding well for
its update tomorrow.
Morrisons' shares may have enjoyed gains last year, but Jefferies analysts say that they are
"by far the most attractively valued equity in the space".
"Whilst we are aware of the inevitable consumer challenges to the sector in 2018, investors'
continued obsession with size does MRW a disservice," Jefferies analysts add in a note.
(Kit Rees)
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EUROPEAN SHARES RISE AS FOOD RETAILERS IN DEMAND (0818 GMT)
It's a positive open for European stocks with Morrisons and Sainsbury's among the top
gainers, while Altice is leading the pack following the spin-off announcement.
Sodexo is at the bottom of the STOXX, however, after some broker downgrades.
Later on this morning we've got data on the Euro zone unemployment rate due, which is
expected to show a slight decline.
Here's your opening snapshot:
(Kit Rees)
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WHAT'S ON THE RADAR FOR EUROPEAN STOCKS (0750 GMT)
European stocks were set for a lukewarm start to trading on Tuesday while futures for
Britain’s FTSE 100 indicated the index could recover from Monday’s fall, with investors still
focusing on reports from retailers after Mothercare and McBride suffered sharp falls in the
previous session after poor trading updates.
Morrisons, the first UK supermarket to report on Christmas trading, beat expectations for
like-for-like sales growth, signaling it’s not all doom and gloom for the UK retail sector, and
setting a high bar for peers Tesco, Sainsbury’s and Marks & Spencer which report later this
week. Morrisons shares are seen gaining up to 5 percent at the open.
A strong Christmas update from Majestic Wine should help cement more optimistic sentiment on
Britain’s squeezed retail sector.
In Europe the struggling cable company Altice will be a focus after it said it would spin
off its U.S. operation – its shares are indicated 2 to 5 percent higher in pre-markets.
And Carillion said it doesn't know why the shares moved up so much yesterday.
In other potential stock movers:
UK builder Persimmon says 2017 profit will be ahead of expectations;
UK's Morrisons beats forecasts for Christmas trading;
Ski resort operator Compagnie des Alpes buys stake in Travelfactory;
Britain's Majestic Wine sales rise in Christmas season;
Europe's Altice to spin off U.S. operation, simplify business;
Shire cuts 2020 revenue target, prepares for spin-off of ADHD drugs;
Regulator rejects Spanish ministers' complaint on Atlantia bid;
Carillion Says Not Aware Of Developments That Support Share Price Rise
(Helen Reid)
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MORRISONS TO FEEL THE XMAS CHEER (0745 GMT)
Morrisons could see a strong day after all following its Christmas update, in which the UK
supermarket beat forecasts.
Traders are expecting the shares to gain between 2-5 percent at the open.
"There’s still a pretty big short base and I think people were cautious heading in – so
could open with a decent pop," one trader told Helen.
"Beware another Next-like short squeeze (11.5% on loan)," tweeted Accendo Markets' Mike van
Dulken.
(Kit Rees and Helen Reid)
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EUROPEAN STOCK FUTURES FALTER, BUT FTSE SET TO RISE (0709 GMT)
Futures for the main euro zone indices have had a lukewarm open, with the CAC and DAX
holding flat - while FTSE 100 futures indicate a small recovery rally for the British index
which had a weak day yesterday after hitting a fresh intraday high in early trading.
"With the FTSE indices again flirting with overbought territory and one-third of All-share
stocks beginning the week within 10 percent of their 52-week high, the UK market is due a spell
of consolidation on technical grounds," writes Peel Hunt analyst Ian Williams in a morning note,
adding however that the underlying mood of investors seems resilient.
Here's your snapshot:
(Helen Reid)
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UK RETAIL IN FOCUS: MORRISONS TO REPORT XMAS TRADING (0645 GMT)
After a pretty poor performance from UK stocks yesterday, particularly retailers Mothercare
and McBride who sank after poor trading updates, the retail sector will again be a focus today
as Christmas trading results from supermarket Morrisons are awaited.
HSBC analysts expect a weakening of like-for-like sales growth compared with last Christmas
and Q3.
"Morrisons is up against some tough comparisons (2.9% LFL last Christmas) and has been
seeing a slowdown in trade as reported by Nielsen in its market share data," they pointed out in
a preview note.
Among other UK companies to watch today will be housebuilder Persimmon and Topps
Tiles, the home improvement store which has been seen as a bellwether of consumers'
confidence and willingness to splash out on DIY projects.
(Helen Reid)
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MORNING CALL: EUROPEAN SHARES SEEN MIXED (0621 GMT)
Good morning and welcome to Live Markets. Stocks in Europe look set for a mixed open today
with spreadbetters calling for slight gains for the FTSE - which lagged peers yesterday - while
European shares are seen edging lower.
Over in Asia, shares kept approaching their all-time highs overnight while the yen jumped
after the Bank of Japan reduced its bond buying programme.
Here are your early calls:
DAX is expected to open 15 points lower at 13,351.7
CAC 40 is expected to open 4 points lower at 5,483
FTSE 100 is expected to open 11 points higher at 7,707.3
(Helen Reid)
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(Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus)
