* STOXX hits fresh 2-week low
* UK Brexit minister quits in severe blow to PM May
* Brexit drama offsets optimism over trade war
Nov 15 - Welcome to the home for real time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Josephine Mason. Reach her on Messenger to share your thoughts on market moves: rm://josephine.mason.thomsonreuters.com@reuters.net
INTRODUCING OUR VERY OWN INTERACTIVE "ROLLING BEAR MARKET" (1234 GMT)
Our graphics team has just put online an interactive "Rolling bear market" chart, which shows you both how many stocks are in bear territory within the world's main benchmarks and whether these indexes are themselves down 20% from their peak.
As you can see, on the surface, the performance of global stocks overall does not appear that troubling, but a closer look at the share of constituents in bear markets is a totally different story.
Here's the link to the "Rolling bear market": https://tmsnrt.rs/2QCzyvm
Here's another link to our Oct. 24 analysis on how bears are taking over world stock markets
Desrayaud, Ritvik Carvalho and Julien Ponthus)
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DON'T FORGET THE BREXIT RESILIENT STOCKS! (1223 GMT)
Volumes and sell orders are on the rise as the Brexit drama unfolds but there are a handful of UK stocks that are surviving quite decently, mostly because they are exporters and benefit from a weaker pound or because their business could benefit from a disorderly Brexit.
Here is Goldman Sachs' so-called "UK8" basket of big international stocks that get a boost when the sterling falls.
And here is the Societe Generale's "Brexit+" plus basket of Brexit resilient companies:
"People are dumping stocks geared to the UK's domestic economy like homebuilders, banks like RBS (LON:RBS) and LLoyds and real estate and of course they're buying UK exporters," said Stephane Ekolo, equity strategist at TFS Derivatives.
Our latest update from the British capital: British PM May battles to save Brexit deal as ministers quit Masoni)
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BREXIT: "WE ARE EXPERIENCING HUGE SELL ORDERS" (1136 GMT)
"We are experiencing huge sell orders and the sterling-dollar pair is in free fall for now", Think Market analyst Naeem Aslam said a bit more than an hour ago after the resignation of Brexit minister Raab gave cable a kick in the face.
Aslam took the view that "The Brexit deal is dead in the water" and that "this could be the end of the road for May" while other analysts witnessed their clients' rush for answers.
Nomura's Brexit specialist said "huge numbers of questions from clients this morning show most are in scenario planning mode".
So what were investors doing apart from witnessing sterling make a spectacular fall in what Oanda's Craig Erlam called a "crazy start to trading" which is likely to last all day?
"Short term traders looking to jump on the big moves and ride them for smaller short term gains have been busy, and will be the ones who take the big risks but could ultimately be the only ones willing to trade the currency", said James Hughes from AxiTrader.
For IG's Chris Beauchamp, who said it was just "one of those morning" there is a case to say that how this crisis unfolds is anybody's guess.
"There are, at present, too many moving parts to guess whether the deal can still get through".
(Julien Ponthus)
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MARKET GYRATES ON BREXIT DRAMA, STOXX AT 2-WEEK LOW (1029 GMT)
The positive open we've seen here in Europe has been short-lived and now all regional benchmarks are trading in the red after the resignation of Brexit Minister Raab has clearly made even more difficult an orderly exit of the country from the European Union. STOXX 600 .STOXX has just hit a two-week low with UK domestic stocks feeling most of the pain, as sterling comes under fresh pressure.
Here are a couple of takes:
"This departure could put at risk the Brexit deal and traders are selling the British currency due to growing uncertainty about the future of the UK," says Carlo Alberto De Casa, chief analyst at ActivTrades in London.
"Raab resigning just now changes the ballgame. Hard to be optimistic on GBP in the short term. But equally Theresa May has survived much worse. It's whether we get a flood of resignations to follow," Nomura analysts tell clients in an email.
The STOXX 600 is now down 0.6 percent while political uncertainty is penalising stocks in UK companies with high domestic exposure, offsetting losses in exporters and weighing even on the FTSE 100, struggling to remain in positive territory.
And here's a snapshot:
(Danilo Masoni)
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OPENING SNAPSHOT: MINERS LEAD, AUTOS LAG (0831 GMT)
A strong rebound in mining stocks is helping drive European stocks up this morning with the STOXX up 0.4 percent and DAX up 0.7 percent.
Hopes that a trade war between China and the U.S. could be nearing endgame after China sent a written response to U.S. trade reform demands are likely helping boost the mining sector .SXPP up 1.8 percent after a sharp fall yesterday on growth worries. A weaker dollar is likely also supporting the sector. stocks meanwhile .SXAP are the worst-performing, down 0.4 percent after China poured cold water on hopes for auto tax cuts there.
AMS AMS.S fell as much as 8 percent at the open after it cut its revenue guidance, reigniting fears around the semiconductor sector.
On the UK front, newly-listed carmaker Aston Martin AML.L reported strong Q3 profit and said it expected full-year sales to come in at the top end of expectations. shares opened up 2.7 percent but quickly turned negative, now down 7.6 percent and set for their worst ever daily fall.
Here are the top movers:
(Helen Reid)
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EUROPEAN FUTURES UP, BUT BEWARE BAD NEWS FROM AUTOS, CHIPMAKERS AND PERSIL MAKER (0719 GMT)
European futures are higher, defying earlier calls for another drop by financial spreadbetters as renewed optimism over a possible end to the prolonged trade spat between the United States and China appeared to offset worries over Rome's showdown with Brussels and May's Brexit drama.
Some negative headlines may curb the gains though: China has poured cold water on industry hopes for a cut in auto purchase taxes, in Austria AMS cut its sales forecast, the latest chip supplier hurt by Apple's weak sales forecast for the upcoming holiday season, and Henkel shares are indicated lower after the maker of Persil detergent and Loctite adhesives reported a slowdown in sales.
AMS shares are seen down 10 percent at the open. They have already lost almost a third of their market cap this month, on track for their worst month in a decade.
Here are this morning's headlines to watch:
Austria's AMS becomes latest Apple (NASDAQ:AAPL) supplier to slash forecast state planner douses hopes for auto tax cuts, tells sector to buckle up sales growth slows as adhesives cool Boss seeks sales boost from speed, online, Asia group Bouygues (PA:BOUY) maintains toned-down outlook as 9-month profits fall Group's Q3 profit rises on improving Dutch market passenger car sales slump 7.4 pct in October regulators hold off designating 'too big to fail' insurers AG expects revenue and earnings to be at top end of forecast approves $1.3 bln Los Pelambres copper mine expansion cuts outlook after dry weather weighs on production to increase cost focus against an uncertain macro backdrop insurer NN Group's Q3 core profit beats estimates with 7 pct rise forced to accelerate planned reform to gambling regulations doesn't see sales lift after security concerns hit Chinese rivals may replicate elements of UK tower sharing venture elsewhere Lloyds (LON:LLOY) agrees settlement with HBOS whistleblower Vodafone (LON:VOD), Ericsson (BS:ERICAs) urge EU to consider 5G car standard Mason)
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MORNING CALL: POLITICS CONTINUE TO DOMINATE
Good morning and welcome to Live Markets.
European stocks are called to open lower today even after Asian equities rose overnight on news that China has delivered a written response to U.S. trade demands.
Politics and falling oil prices continue to overshadow, with Brexit drama dominating the UK market and Italy's deepening budget crisis and showdown with the EU Commission driving bond yields up and bank stocks down.
"While (Theresa May was able to achieve what she called collective approval from her cabinet to accept the deal, the gritted teeth consensus could well be tested in the coming days," says Michael Hewson, chief market analyst at CMC Markets UK.
Financial spreadbetters call the DAX 30-35 points lower, the CAC40 is expected to open 11-15 points lower and the FTSE 100 will be flat to down 28 points, according to IG and CMC Markets UK.
(Josephine Mason)
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https://tmsnrt.rs/2PvpM1G Brexit drama
https://tmsnrt.rs/2QIprVX John Rain tweet
https://tmsnrt.rs/2PssuFb Goldman UK8
https://tmsnrt.rs/2QK9NcT Soc Gen Brexit+
https://tmsnrt.rs/2QKamDx bear
https://tmsnrt.rs/2QJLvzo bear
https://tmsnrt.rs/2QJL5ci
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