Trader Talk: An Analysis of the Markets this Morning

Good morning,

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

• UBS Agrees to Pay $885m to Settle U.S. Securities Suit

• Deutsche Boerse 2Q Earnings Fall on Slower Trading

• Repsol Seeks to Block Chevron Deal With YPF via World Bank

• LVMH Confident for Second Half After First-Half Profit Gains 2%

• Luxottica Posts Record Quarterly Sales, Eyes 1-2 Acquisitions

EARNINGS: All times CET

• Abertis Infraestructuras (ABE SM) pre-mkt, 1H adj. EPS est: EU0.36 (3 ests.)

• Banco Popular Espanol (POP SM) pre-mkt, 1H adj. EPS est: EU0.05 (1 est.)

• Red Electrica (REE SM) pre-mkt, 1H, no est.

• Lafarge (LG FP) 7:00am, 1H adj. EPS est: EU0.17 (2 ests.)

• Safran (SAF FP) 7:00am, 1H adj. EPS est: EU1.32

• Belgacom (BELG BB) 7:00am, 2Q adj. EPS est. EU0.45

• Technicolor (TCH FP) 7:00am, 1H adj. EPS est: EU0.06 (1 est.)

• YIT (YTY1V FH) 7:00am, 2Q adj. EPS est: EU0.27

• Air France-KLM (AF FP) 7:15am, 2Q adj. loss/shr est: EU0.22 (3 ests.)

• CNP Assurances (CNP FP) 7:30am, 1H, no est.

• Rexel (RXL FP) 7:30am, 2Q adj. EPS est: EU0.32 (3 ests.)

• Renault (RNO FP) 7:30am, est: EU2.75 (1 est.)

• BG Group (BG/ LN) 8:00am, 2Q adj. EPS est: $0.28

• Total (FP FP) 8:00am, 2Q adj. EPS est: EU1.18

• BSkyB (BSY LN) 8:00am, FY adj. EPS est: GBP0.58

• Anglo American (AAL LN) 8:00am, 1H adj. EPS est: $0.90

• Pearson (PSON LN) 8:00am, 1H adj. EPS est: GBP0.10

• United Utilities (UU/ LN) 8:00am, 1Q, no ests.

• Spectris (SXS LN) 8:00am, 1H, no ests.

• Homeserve (HSV LN) 8:00am, 1Q IMS

• Prosegur (PSG SM) 9:00am, 1H, no est.

• Banco Espirito Santo (BES PL) 6:00pm, 1H, no est.

• Eiffage (FGR FP) aft-mkt, 2Q IMS

• Ansaldo STS (STS IM) 1H adj. EPS est: EU0.18 (1 est.)

• CaixaBank (CABK SM) 1H, no est.

• SES (SESG FP) 1H, no est.

• NV Bekaert (BEKB BB) 1H adj. EPS est: EU0.55 (1 est.)

• Ebro Foods (EBRO SM) 2Q adj. EPS est: EU0.24 (1 est.)

• Panalpina Welttransport (PWTN SW) 2Q adj. EPS est: CHF0.87 (2 ests.)

Asian stocks fell, with the regional benchmark index trimming a fifth weekly advance, as Japanese shares dropped amid disappointing earnings. European equity-index futures rose while gasoline rebounded.

The MSCI Asia Pacific Index slid 0.7 percent to 135.22 as of 7:04 a.m. in London, paring its climb in the week to 0.2 percent. Japan’s Topix index plunged the most since June 13. Euro Stoxx 50 futures climbed 0.6 percent and contracts on the Standard & Poor’s 500 Index added 0.1 percent. The yen advanced a second day against the dollar, while the won rose 0.4 percent.

Gasoline futures climbed 0.2 percent, snapping a two-day loss, and gold added 0.2 percent. Samsung Electronics Co., the largest smartphone maker, posted disappointing profits and Advantest Corp. had a wider-than-estimated loss. Of companies on MSCI’s Asian gauge that have reported results this month, 57 percent exceeded profit estimates and 52 percent missed revenue forecasts. China ordered companies to cut production capacity this year. Federal Reserve policy makers meet next week, and the U.S. will report on economic growth and employment.

Good day and happy trading!

Kristian Camenzuli