Here's What to Watch in European Stocks This Morning

(Bloomberg) -- Good morning. Here's what we are watching ahead of the market open in Europe:

Primark's Power

FTSE 100-member Associated British Foods Plc made its name as a bakery owner and sugar producer, but is now highly dependent on earnings from its Primark budget-clothing retail chain. ABF, which reports full year results this morning, has seen its stock slide this year amid fears of increased competition from fast retailing peers like Sweden's H&M and Spanish chain Zara, a subsidiary of Industria de Diseno Textil SA. Commentary on next year's outlook, given new Primark store openings, could be key. Note that cigarette giant Imperial Brands Plc and U.K. grocery chain Wm Morrison Supermarkets Plc are also on the consumer earnings slate Tuesday morning.

Painful Pandora

Its been a painful 2018 so far for Pandora A/S, the Danish jeweler known for its charm bracelets. The stock is down about 42 percent year-to-date after the company slashed its earnings forecasts while its chief executive headed for the exits. Pandora shares slid almost 8 percent in Copenhagen on Monday ahead of third-quarter numbers, which are due before the open today. The market is likely to be expecting another weak set of numbers, while any glimmer of a turnaround will be welcomed.

Booking Dot Yeah

Travel reservations giant Booking Holdings Inc., owner of the popular booking.com website, reported a 13 percent jump in room nights reserved globally during the seasonally busy third quarter, sending its shares higher by as much as 8 percent in after-hours trading in New York. The report could have a read-across for the European travel and tourism sector, including package-holiday firms like TUI AG and Thomas Cook Group Plc, as well airlines and those dependent on airport footfall like retailer WH Smith Plc and caterer SSP Group. Expedia Group Inc. reports before the open in New York later.

Ready

China is ready to discuss a trade solution with the U.S., U.K. Prime Minister Theresa May is ready to lay-out the latest options for a Brexit deal to her divided cabinet, and Americans are ready to vote in today's midterms. Macroeconomic risks aren't going anywhere, for now. Stocks in Asia were mixed overnight, with some appearing to stay on the sidelines ahead of the key risk events. Note that Apple Inc. suppliers fell on a Nikkei report saying the iPhone maker wouldn't boost some production. The likes of Dialog Semiconductor Plc and STMicroelectronics NV could be in focus this morning.

READ: Asia Stocks Mixed Ahead of Midterms; Dollar Steady: Markets Wrap

Mosaic's Pattern

“Phosphate” is a word unlikely to be on the tip of the average person's tongue, but the chemical is everywhere -- mainly used to make agricultural fertilizers as well as household cleaning products. U.S. firm Mosaic Co. is the biggest maker of the stuff, and reported third-quarter profit that topped analyst estimates on Monday, noting “underlying firmness” in phosphate demand. Mosaic has a number of European peers, such as K+S AG, as well as another German producer, Bayer AG.

To contact the reporter on this story: Joe Easton in London at jeaston7@bloomberg.net

To contact the editors responsible for this story: Beth Mellor at bmellor@bloomberg.net, Tom Lavell

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