Nov 8 - Welcome to the home for real-time coverage of
markets brought to you by Reuters reporters. You can share your
thoughts with us at [email protected] UK: TOO CHEAP TO IGNORE! (0928 GMT)
One of the key attractions of the European equity market is
that you can buy good companies on the cheap. So, while Europe is undoubtedly very cheap relative to the
world, the valuation discount of UK Plc has reached even more
extreme levels that are hard to ignore. "UK has opened up a record discount vs other regions,"
writes JP Morgan in a note recommend that investors go
overweight the UK in the European and global context.
"UK equities have lagged both the US and Eurozone ever since
Brexit referendum; We closed our multi year short in July '20,
and add further now," they add. According to the U.S. investment bank UK P/E relative has
never been this attractive. Have a look at this chart showing the MSCI UK trading at a
forward PE discount to MSCI world of around 46%, which is some
3.5 times the 20-year average discount of just 13%.
(Danilo Masoni) ***** FLAT MONDAY? (0740 GMT)
There's clearly no set direction of travel this morning in
Europe with the STOXX 600 gently going up and down the
floatation mark. The pan-European is currently trading just a couple of
points from the record reached last week and it wouldn't take
much to set course once again to unchartered highs. A few stocks stand out this morning, notably Siemens Energy,
up 4.7% after its turbine maker unit Gamesa said on Friday it
expected to return to profitability in 2022.
Still on the earnings front, German consumer goods group
Henkel trimmed its full-year earnings outlook due the spike in
raw material prices and saw its shares tank over 5%. Richemont shares are on a roll, up 4.5% after reports
activist hedge fund Third Point built a stake in the Swiss
luxury group. There's also some speculation the founder of THG could be
considering taking the tech company private after he seemed to
express regret of floating it in an interview.
THG shares are up 5% but lost about two thirds of their
value since September. Talking about M&A, Playtech is up 2% after it received a
takeover proposal from its second-biggest shareholder after
having agreed to a deal with Australian gambling machine maker
Aristocrat Leisure. (Julien Ponthus)
***** MUSK'S FOLLOWERS HAVE SPOKEN (0738 GMT) Frankfurt-listed Tesla shares are down 9% after the
majority of people who voted on Elon Musk's Twitter poll this
weekend said he should sell about 10% of his Tesla stocks.
Unclear yet, what sort of impact, if any, this piece of
information will have on the broader European market. For now,
European futures are flat as traders digest a data-heavy couple
of days, including the upbeat U.S. October payrolls report and
China's exports numbers.
Chinese exports beat forecasts in October to deliver a
record trade surplus, although a miss on imports added to
evidence of a slowing in domestic demand. On Saturday, a giddy President Joe Biden hailed
congressional passage of a long-delayed £1 trillion
infrastructure bill as a "once in a generation" investment. (Joice Alves)