* European stocks edge up
* Commodity stocks lead gains
* AMS drops after Q2 sales warning, semis down
LONDON, April 24 (Reuters) - Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. Reach him on Messenger to share your thoughts on market moves: julien.ponthus.thomsonreuters.com@reuters.net
RUSAL SANCTIONS REPRIEVE: BAD NEWS FOR ALUMINIUM MINERS? (1150 GMT)
The U.S. extended the deadline for U.S. companies to comply with Rusal sanctions yesterday, offering Americans a reprieve - until October 23, instead of June 5, to wind down business with Rusal. Kremlin today said it is "rather cautious" on hopes the U.S. may ease sanctions on Rusal 0486.HK , but aluminium is tanking on the news anyway, extending yesterday's decline. this affect the big Europe-listed miners who've enjoyed the boost from surging metals prices? Yes, but not all in the same direction.
" Glencore has an 8.75% stake in Rusal so any loosening of the sanctions could be positive for Glencore's holding... Glencore trades some of Rusal's tonnes so there could be an additional upside if Glencore is permitted to trade those tonnes," write Goldman Sachs (NYSE:GS) analysts.
Rio Tinto RIO.L and Vedanta VED.L , on the other hand, would be negatively impacted if aluminium falls back to pre-sanction levels. Rio and Vedanta generate 18 percent and 9 percent respectively of 2018 group EBITDA from aluminium, notes GS. Aluminium firm Norsk Hydro NHY.OL could also see its shares dented.
Glencore's GLEN.L shares are up more than 13 percent since sanctions were imposed on April 6, boosted by the surge in base metals prices.
(Helen Reid)
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APPLE SUPPLY CHAIN "TAKEN BY SURPRISE" (1044 GMT)
It's a pretty significant fall from grace for ams AMS.S , the darling of European markets last year, down 8 percent after results which were - to say the least - a big disappointment. The chipmaker warned of a slowdown in sales in its second quarter and reported Q1 sales at the lower end of its guidance range. suppliers aren't allowed to directly name their big customers, ams said it was seeing significantly lower business from "a large smartphones programme" and analysts think it's likely this reflects a slowdown in the new iPhone.
"What is very clear is that the phasing down of the iPhone X has taken the supply chain by surprise," writes Neil Campling of Mirabaud, who closed his "buy" on ams last week.
Ams' warning comes after Taiwan Semiconductor 2330.TW , another big Apple (NASDAQ:AAPL) supplier, last week also reported weaker numbers, and adds to signs of strain in the supply chain.
The Swiss chipmaker is still almost universally liked by analysts, as you can see below.
"A massive consensus long and missed numbers by more than 10 percent, so the whole Apple supply chain is under the cosh," says a trader.
So, where to from here?
"The valuation needs to reset... ams is, for now, still highly dependent on Apple and the valuation is unwarranted," says Campling.
All eyes will be on STMicro's results tomorrow for signs the pattern among chipmakers and iPhone suppliers is sticking.
UBS analysts are still broadly positive on Apple: "Despite our concerns about iPhone X demand and lack of rebound in China, the pricing strategy has successfully moved users up the curve."
(Helen Reid)
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OIL PRICES: A CONCERN BUT NOT FOR ENERGY STOCKS (1023 GMT)
Oil has risen above $75 a barrel to its highest since November 2014 and while that is fuelling concerns about inflation and growth, which in turn is contributing to the broader market's cautious tone, for energy stocks it has been a boon so far.
The European oil and gas index .SXEP has already risen nearly 11 percent in April, set for its best month since October 2015 and firmly moving at its highest level in nearly 3 years, as you can see in this chart:
The index is now the best sectoral performer in Europe so far in 2018, up more than 6 percent, while the pan-European STOXX 600 benchmark is still down 1.5 percent.
"A rise in oil prices used to motivate investors as it indicated more demand and growth. Now, it's becoming a source of concern, with prices hovering near a three-year high of $75. Investors are likely to question the implications of higher commodity prices on inflation and the wider economy," Hussein Sayed, Chief Market Strategist at FXTM.
Perhaps a reason why the inflation worries are still not putting off investors is that its effect on prices is still seen as temporary and unlikely to speed up monetary policy normalisation.
"Inflation is about a general rise in prices, not about one price rising relative to other prices. Central banks should look through oil-related inflation, unless higher oil prices encourage wage increases (which could create a more general price pressure)," says UBS's Donovan.
It might be interesting to hear what Mario Draghi will have to say on oil, on Thursday at the press conference that follows the European Central Bank's governing council meeting.
(Danilo Masoni)
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MUCH ADO ABOUT A NUMBER (0957 GMT)
Not everyone is excited that the yield on the U.S. 10-year Treasury has come close to the 3 percent level (though it's eased somewhat today):
"US Treasury bond yields are flirting with 3%. What does this mean? It means 3% is a nice round number and bond dealers are simple people who like nice round numbers," says Paul Donovan, chief economist at UBS Global Wealth Management.
"Economically, 3% is no different from 2.98%."
So perhaps it's not surprising that the bond proxies in Europe have calmed down a bit today and are recovering - consumer staples and utilities are both making headway.
(Kit Rees)
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OPENING SNAPSHOT: EUROPEAN SHARES STEADY, SEMIS SLIDE (0718 GMT)
European shares may be flat in early trading but the attention is squarely on results. Of note is weakness among semiconductor stocks after AMS AMS.S warned on Q2 sales - its shares are down around 10 percent.
Conversely SAP SAPG.DE , Europe's biggest tech stock, is among the top STOXX gainers after the company gave a set of upbeat results in which it said it was gaining market share.
More broadly, falls among materials, industrials and consumer discretionary stocks are weighing most on the STOXX.
Here's your opening snapshot:
(Kit Rees)
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WHAT TO WATCH AT THE BELL (0652 GMT)
European shares are expected to open flat despite a mixed session on Wall Street and a lack of enthusiasm for tech stocks there.
U.S. 10-year yields have retreated to 2.96 percent giving investors some respite to look at indicators, such as Germany's IFO or Belgium leading indicator (a Euro zone bellwether) and a fresh new batch of corporate earnings.
The results are shedding light on the health of a lot of sectors across the continent and clearly chipmaker AMS' first-quarter sales are likely to worry investors as the stock seems ready to fall at the open.
In the auto sector, premarket indications show little enthusiasm for car makers PSA and Volvo or Michelin . Banks, (Santander and Swedbank ) will be closely monitored after UBS' disappointing results while Deutsche Bank may be a mover after it was reported that it could announce a revamp of its investment bank Thursday.
Other big names to report this morning: SAP, Akzo Nobel , Dutch employment agency Randstad's Q1 earnings exposing strong growth in Europe.
(Julien Ponthus)
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EARLY MORNING HEADLINE ROUND-UP (0633 GMT)
There's plenty of earnings to keep investors busy this morning, notably from the banking sector with updates from Santander and Swedbank.
Here's a round-up of the headlines catching our eye ahead of the open:
Santander SAN.MC Q1 profit rises 10 pct, buoyed by Brazil SWEDa.ST Q1 profit tops forecast as Swedish housing market steadies James's Place SJP.L Q1 assets dip on weaker market returns Bank DBKGn.DE may announce investment bank revamp on Thursday -report court backs Julius Baer BAER.S in East German assets row Re MUVGn.DE says expects Q1 profit of over 800 million euros SAPG.DE , gaining market share, raises outlook sensor supplier AMS ,AMS.S> warns of second-quarter slowdown Nobel AKZO.AS Q1 profit misses estimates as sales drop PUMG.DE says China powered strong first-quarter sales employment agency Randstad's RAND.AS Q1 earnings rise on strong Europe growth tools maker Husqvarna HUSQb.ST Q1 EBIT just lags expectations demand lifts AB Volvo VOLVb.ST profit, straining supply chain PEUP.PA sales jump 42 percent on Opel-Vauxhall acquisition MICP.PA sales fall as euro compounds China, U.S. weakness [Michelin sales fall as euro compounds China, U.S. weakness AZN.L to raise stake in Circassia CIRCI.L to up to 19.9 pct Stock Exchange Group's LSE.L quarterly profit rises Telenor TEL.OL adjusts guidance to reflect CEE sale, Q1 slightly ahead American's AAL.L Minas-Rio in Brazil to ramp up in Q4 after leaks SPMI.MI swings to Q1 net loss after reorganizing charges Italia TLIT.MI shareholders to vote on CEO as board showdown delayed Rees)
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EUROPEAN FUTURES TRADING HIGHER AS EARNINGS COME IN (0610 GMT)
Futures for major European indexes are trading in positive territory as Q1 results start to flow in. Here's the Top News page for European companies where you can check out how it's going so far on the earnings front: TOP/EQE
Here's a snapshot of European futures at 0605 GMT:
(Julien Ponthus)
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EARNINGS AND INDICATORS: LOTS OF THEM! (0548)
It's not all about FAANGs or U.S. treasury yields this morning: a batch of fresh indicators and corporate earnings should give enough data to animate the session with notably Germany's Ifo, but also business sentiment indicators in France, Belgium, Italy and the UK as well as employment figures for Sweden.
In terms of earnings, they are coming from across all sectors and regions, here's a sample:
Akzo Nobel NV Q1 2018 Earnings Call
Ams AG Q1 2018 Earnings Call
Banco Santander SA Q1 2018 Earnings Call
Coface SA Q1 2018 Earnings Call
Cofinimmo SA Q1 2018 Earnings Release
Iberdrola (MC:IBE) SA Q1 2018 Earnings Release
Mediaset SpA Q4 2017 Earnings Call
Randstad Holding NV Q1 2018 Earnings Call
Santander UK Group Holdings PLC Q1 2018 Earnings Call
SAP SE Q1 2018 Earnings Call
Swedbank AB Q1 2018 Earnings Call
Telekom Austria AG Q1 2018 Earnings Release
Telenor ASA Q1 2018 Earnings Call
Volvo AB Q1 2018 Earnings Release
Zodiac Aerospace SA HY 2018 Earnings Release
(Julien Ponthus)
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MORNING CALL: EUROPEAN BOURSES SEEN RISING AT THE OPEN (0520 GMT)
European shares are expected to rise at the open this morning ahaed of a earnings-heavy session after Asian stocks bounced back from near two-week lows.
Financial spreadbetters expect London's FTSE to open 10 points higher, Frankfurt's DAX 27 points higher and Paris' CAC 6 points higher helped by the recent rise of the dollar.
US 10-year Treasury yields, which were close to breaking the 3 percent benchmark on Monday, have currently retreated to 2.96 percent.
(Julien Ponthus)
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https://reut.rs/2KaCgpo Oil stocks at 3-year high
https://reut.rs/2Ffq2YU Opening snapshot
https://reut.rs/2Kbcu44 AMS recommendations
https://reut.rs/2JnjR7c Glencore shares
https://reut.rs/2Jn4fAW
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