LONDON, March 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 Julien Ponthus. Reach him on Messenger to share your thoughts on market moves: julien.ponthus.thomsonreuters.com@reuters.net
EUROPEAN SHARES CAUTIOUSLY IN THE RED (0848 GMT)
European shares opened slightly lower with most sectors in the red except defensives such as healthcare or utilities. Investors held their nerves after the announcement of U.S. tariffs and the focus has now turned to the U.S. jobs report later today.
German industrial output data did little to lift sentiment as did the few corporate earnings published this morning.
(Julien Ponthus)
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HEDGE FUND SHORTING OF EUROPEAN EQUITIES AT FIVE-YEAR HIGH (0814 GMT)
Despite weeks of upgrades to European earnings and positive macro newsflow, international hedge fund investor interest in Europe "feels as low as it has ever been", say Morgan Stanley (NYSE:MS) analysts, who point out a steady rise in short exposure to its highest in at least five years.
The MS Prime Brokerage data on European hedge fund positioning also shows European hedge fund overall net exposure close to a five-year low at 33%.
Link to graphic: http://reut.rs/2Fmti9M
(Thyagaraju Adinarayan)
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NO PANIC IN EUROPE AS TRUMP FOLLOWS THROUGH ON TARIFFS (0748 GMT)
There's a sense of disbelief among some market analysts as the announcement of new U.S. tariffs, which had been stoking fears of a global trade war, fails to deliver the predicted sell-off.
“It's a very strange world indeed when the long anticipated confirmation of a 25% tariff on steel and 10% on aluminium prompts stock markets to close higher”, writes Michael Hewson of CMC Markets.
Some relief too on the Korean front, with the North offering "denuclearisation" and offering to hold the first ever U.S.-North Korea summit.
But the main point of focus will be the U.S. jobs report at 1330 GMT.
It was the upbeat jobs data last month that fanned speculation of faster rate rises in the United States, causing a rout in the bond market and hammering world equities. A jump in the hourly earnings data above the expected 2.8 percent could cement expectations of four Fed hikes in 2018.
German industrial output fell unexpectedly in January, data showed on Friday, adding to signs that factories in Europe's largest economy are operating at a slower pace at the start of the year.
Here's a round-up of overnight corporate news headlines:
China Resources Beer in talks to acquire Heineken's China business - sources Shell (LON:RDSa), Blackstone (NYSE:BX) eye $10 bln bid for BHP U.S. shale assets -Sky News Swiss bank Raiffeisen's chairman steps down amid probe of ex-CEO
Italy's Ferragamo rules out sale as troubles continue
Daimler, Volvo Cars executives sceptical over Geely alliance plan nL5N1QP3EP] Labour union calls strike at Deutsche Telekom (DE:DTEGn) over pay Inmarsat cuts dividend to fund investment in aviation business France's Lagardere says future of Elle magazine "a question" France's TF1 and Orange sign a new distribution deal on channels UK's SIG full-year profit rises 4.3 pct
BRIEF-SSAB comments on impact of U.S. steel tariffs (Julien Ponthus, Tom Pfeiffer) *****
EUROPEAN FUTURES OPEN SLIGHTLY LOWER, U.S. JOB REPORT IN FOCUS (0715 GMT)
European futures have opened slightly lower as investors, already trying to read through the consequences of the new U.S. steel and aluminum tariffs and a possible meeting between North Korean leader Kim Jong Un and Donald Trump, brace themselves for the U.S. job report at 1330 GMT.
It was the upbeat jobs data last month that fanned speculation of faster rate rises in the United States, causing a rout in the bond market and hammering world equities.
(Julien Ponthus)
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MORNING CALL: EUROPEAN SHARES SEEN FLAT AT THE OPEN (0616 GMT)
Financial spreadbetters expect London's FTSE to open 2 points higher, Frankfurt's DAX 8 points down and Paris' CAC to edge down 5 points.
Asian shares pared sharp early gains ahead of U.S. payrolls data which could hasten Federal Reserve rate hikes, and as some caution set in about the new entente between North Korean leader Kim Jong Un and U.S. President Donald Trump.
On the protectionism front, the mood has brightened a little after Trump pressed ahead with tariffs but offered conditional exemptions for Canada and Mexico, offering at least the hope that a full-blown global trade war could be averted.
(Julien Ponthus)
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