* European shares open down sharply, last -1%
* Travel stocks drag STOXX 600 to 3-month lows
* France tightens virus measures
* Asia shares tumble after Wall Street fall Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters. You can share your thoughts with Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London and Stefano Rebaudo (stefano.rebaudo@thomsonreuters.com) and Danilo Masoni (danilo.masoni@thomsonreuters.com) in Milan.
MIND THE GAP: BIG MINERS MAY PLAY CATCH UP (0821 GMT)
Citi has spotted a widening disconnect between Europe's big miners and the gains in the underlying commodities that make the bulk of their earnings.
That means investors may remain bullish on the space despite a material recovery from the bottom and prepare for some good dividend news later on. Citi sees a 38% upside this year's core profit consensus estimate if current spot prices hold.
"Despite the share prices clawing their way back to pre-COVID-19 levels in most cases, the significant increase (not just a recovery) in commodity prices YTD has not been priced into the equities," analyst at the US bank say.
"The big-4 miners will generate around $41bn of FCF at spot commodity prices vs $31bn on our house commodity price forecasts. Given the balance sheet position and payout ratio based dividend policies of these companies, a significant proportion of that FCF is likely to come back to shareholders as dividends next year as well," they add.
(Danilo Masoni)
*****
OPENING SNAPSHOT: TRAVEL STOCKS LEAD BROAD SELL-OFF (0725 GMT)
There's not one sector trading in the black at the start of trade with travel stocks understandably leading the drop after France tightens measures to fight COVID-19, adding to concerns over a faltering economic recovery.
Europe's Travel & Leisure .SXTP index is down more than 2.3%, followed by oil and tech stocks, both down nearly 2%.
In the defensive space, real estate and utilities shares were down less than 1%.
As a result the STOXX 600 .STOXX was last down 0.9% after hitting its lowest level since June 25.
Here's your snapshot:
(Danilo Masoni)
*****
ON OUR RADAR: EURO FUTURES HIT 14-WEEK LOW, TIGHTER VIRUS MEASURES (0649 GMT)
European shares are set to open down sharply after bid drops in Asia and Wall Street with traders blaming growing worries over the economic recovery, as COVID-19 cases grow globally and government impose new restrictive measures to counter a second wave of infections.
France's health minister unveiled a map of coronavirus "danger zones" around the country late on Wednesday and gave the hardest-hit local authorities, including that of Marseille, days to tighten restrictions or risk having a state of health emergency declared there. Germany also issued travel warnings to further French regions. also looks that Powell's remark last night that the Fed "had basically done all of the things it could think of" and fresh Korean tension aren't helping either. on the Euro STOXX 50 were down 1.4 at their lowest in around 14 weeks.
As a result of the new restrictions, travel and leisure stocks could be under pressure with eyes on French stocks such as Elior ELIOR.PA and Accor ACCP.PA . A report Delta Air Lines (NYSE:DAL) DAL.N is in talks with Airbus AIR.PA to delay at least 40 aircraft deliveries further underscores the pain facing its virus-hit industry. Airbus shares are seen down 1-2%.
Eyes also on Atlantia ATL.MI ahead of a board meeting later today which is set to discuss the spin-off of its motorway assets amid reports of ongoing disagreements with the government over details of a deal. France, utility Suez SEVI.PA took steps to rejig its water business as it fights a hostile bid from local rival Veolia VIE.PA . in Germany SNP Schneider SHFG.DE shares were up 2.5% in early trade after news of a partnership with Fujitsu.
In earnings, lower consumption during the COVID-19 pandemic prompted UK water supplier United Utilities UU.L to warn of lower first-half revenue.
(Danilo Masoni)
*****
MORNING CALL: DOWN WE GO (0538 GMT)
We're clearly set for a risk-off session in Europe today with stock index futures pointing to losses of more than 1%. The magnitude of the falls could well drag the STOXX 600 .STOXX benchmark down to its lowest level since June.
Wall Street closed sharply lower led by a more than 3% drop in the Nasdaq, while Asia isn't of any inspiration with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS last down 1.9% on worries over the resilience of the economic recovery. MKTS/GLOB .
(Danilo Masoni)
*****
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ open
https://tmsnrt.rs/33PFRDM miners
https://tmsnrt.rs/3i1XfKu
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>