Trader Talk: An Analysis of the Markets this Morning

Good morning,

Markets are called to open lower this morning. This is what's happening today:

• Strike on Syria’s Weapons Looms as U.S. Readies Forces With U.K., France

• Ex-JPMorgan Trader to Fight U.S. Extradition Over $6.2b Losses

• Asian Stocks Drop While Crude Climbs on Syria Concerns

• Carney’s Maiden BOE Speech to Confront Forward Guidance Skeptics

• Vestas, Ocado to Join Stoxx 600; Salzgitter, Acciona Deleted

• Pop. Milano Reports Quarterly Profit After Year-Earlier Loss

• Merkel Blames SPD’s Schroeder for Letting Greece Into the Euro

• Conwert Raises FFO I FY Goal Ex.-Restructuring to EU36m vs EU25m

• BMW Owners Vent Anger at Months-Long Wait for Spare Parts

• German Poultry Breeder Said to Weigh Sale of Animal-Health Unit

• Currency Spikes at 4 P.M. in London Provide Rate-Rigging Clues

• Statoil Makes Third Oil Discovery Off Coast of Newfoundland

• Hollande Revamps French Pensions With Longer Working Lives

EARNINGS All times CET, estimates where available:

• Accor (AC FP) 7am, 1H adj. net EU111m

• Bouygues (EN FP) 7am, 1H rev. EU15.1b

• Bourbon (GBB FP) 7am, 1H rev. EU649.2m

• Paddy Power (PWL ID) 8am, 1H adj. EPS EU1.40 (2 est.)

• Bureau Veritas (BVI FP) 7:30am, 1H adj. net EU188.7m

• Eiffage (FGR FP) post-mkt, 1H adj. net EU60.5m

• Eurazeo (RF FP) TBD, 1H

• Ackermans & van Haaren (ACKB BB) TBD, 1H EPS EU3.19 (1 est.)

• Banca Popolare di Sondrio (BPSO IM) TBD, 1H

• Seadrill (SDRL NO) TBD, 2Q adj. EPS $0.64

• Sevan Drilling (SEVDR NO) 8am, 2Q EPS loss $0.002

• G4S (GFS LN) 8am, 1H adj. EPS GBP0.086

• Polymetal (POLY LN) 8am, 1H

• APR (APR LN) 8am, 1H rev. EU87m (2 est.)

• Chemring (CHG LN) 8am, IMS

• 888 Holdings (888 LN) 8am, 1H Ebitda $36.5m

European equity futures fell with Asian stocks, and oil rose to a two-year high on concern the U.S. will take military action against Syria. Tensions in Syria have worsened a rout that’s seen investors pull billions of dollars from emerging markets on speculation the Federal Reserve will begin tapering stimulus as the U.S. economy recovers. The rupee is leading losses in Asian currencies and stocks in Thailand have entered a bear market. Data today may show pending sales of previously owned U.S. homes stagnated.

Stock to watch: Ryanair

Ryanair Holdings Plc was ordered by the U.K. antitrust regulators to cut to no more than 5 percent its stake in Aer Lingus Group Plc to address competition concerns, a ruling the discount carrier has vowed to contest.

Ryanair’s 29.8 percent holding in the Irish carrier, worth about 269 million euros ($360 million), affects Aer Lingus’s policy and strategy, the U.K. Competition Commission said in a report today. Ryanair said it will challenge the ruling, which it called “manifestly unsound.”

“This prejudicial approach to an Irish airline is very disturbing, coming from an English government body that regards itself a model competition authority,” Ryanair Chief Executive Officer Michael O’Leary said in a statement in reaction to the U.K. authority’s ruling.

Good day and happy trading!

Kristian Camenzuli