Last checked at 
* European shares hit new record highs
* STOXX 600 up 0.6%, FTSE 100 up 0.7%
* Slowing spread of coronavirus supports sentiment
* Puma affirms FY targets despite virus, shares jump
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 Thyagaraju Adinarayan
(thyagaraju.adinarayan@tr.com), Joice Alves (joice.alves@tr.com), Julien Ponthus
(julien.ponthus@tr.com) in London and Danilo Masoni (danilo.masoni@tr.com) in Milan.
WHO'S NEXT IN ITALIAN BANKING M&A (1140 GMT)
No one has a crystal ball to say how Italian banking M&A is going to play out following
Intesa Sanpaolo's hostile bid for UBI Banca but the strong share price moves
in Milan suggest investors are gearing up for others banks to join the fray.
"We believe that the voluntary offer of ISP on UBI has more impacts on the other banks than
on ISP itself," say Equita analysts Giovanni Razzoli and Andrea Lisi.
And here's a recap of the names they say could possibly be called into action.
Banco BPM: "The main beneficiary of an increased M&A appeal among our coverage
universe is BAMI, which is trading with a significant discount".
Popolare di Sondrio: "We believe that market will incorporate a slightly lower M&A
probability on BPSO vis-à-vis BAMI... as the transformation into a joint-stock company cannot be
taken 100% for granted".
Credito Valtellinese: "We believe that also Creval could be involved into the
sector consolidation once the derisking process the streamlining of the operating structure has
been completed".
Monte dei Paschi: "BMPS speculative appeal, if any at present, is entirely related
to company specific elements ie the outcome and the terms of the acceleration of the derisking
process currently under discussion with the EU".
That said, Equita says Italian bank's earnings outlook is grim and warns against being
over-exposed to the sector.
(Danilo Masoni)
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WANNA PLAY THE EASING VIRUS FEARS? (1030 GMT)
If the answer yes, then Credit Suisse has some tips for you.
To find possible buys, the Swiss bank screened for stocks that have underperformed over 10%
since the rate of coronavirus infections peaked, and are cheap and are outperform-rated.
Among the names they single out Siemens, Informa as well as many
commodity stocks, such as RDS and Antofagasta.
In this chart you can see how these stocks clearly underperformed the market since virus
fears hit markets one month ago.
(Danilo Masoni)
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OPENING SNAPSHOT: JUST SHY OF RECORD (0825 GMT)
European stocks are just shy of record highs and its risk-on trades across the board as
coronavirus infection rate slows with miners, oil & gas and banks outperforming the pan-European
STOXX 600 index.
Among single stocks, Campari is down 6% after the Italian spirits group reported
full-year organic sales growth below estimates. In a surprise reversal, Plastic Omnium
wipes off gains seen at the open, falling 3%, even as profits came in better than expected.
Man Group is the top riser on STOXX 600 after Exane upgrades stock to "outperform",
according to traders.
(Thyagaraju Adinarayan)
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EURO TAILWIND PLAYING OUT; BA-OWNER IAG, HAPAG LLOYD IN FOCUS (0750 GMT)
Stocks are seen attempting to scale fresh record highs as a sharp drop in euro late last
evening is seen supporting dollar earners in the bloc. European bourses, which are seen opening
0.5% to 0.7% higher, are also supported by slowing new cases of coronavirus.
The pan-European STOXX 600 is expected to scale yet another record peak, a day
after Apple's coronavirus warning kept stocks under pressure. The virus is seen
disrupting supply chain and sales in industries ranging from cars to phones.
Adva Optical is the latest company to warn on disruptions from coronavirus and its
shares are seen falling 6% at open.
In other corporate news, British Airways owner IAG's shares could get a boost as
Qatar Airways Group said it had increased its stake in the airline operator to 25.1%.
Hapag-Lloyd's shares are rising 2% in premarket trade after the German container
shipping company raised its 2019 profit forecast on higher freight rates.
ASR Nederland is seen rising 3% after the Dutch insurer's full-year results beat
across the board, trader say.
Other significant moves: Plastic Omnium profits and dividend beat seen helping
shares (+4%); Deutsche Telekom seen +2%, traders highlight strong free cash flow
outlook; Renault cut to junk at Moody's.
(Thyagaraju Adinarayan)
*****
BACK TO RECORD HIGHS? (0703 GMT)
European stocks are seen opening 0.5% to 0.7% higher as markets remain resilient to the
economic effects of coronavirus which has killed nearly 2,000 people, mostly in China.
The pan-European STOXX 600 is yet again seen scaling record peaks today even as
coronavirus is seen disrupting supply chain and sales in industries ranging from cars to phones.
Apple was the latest to warn on a sales impact.
"We are already seeing various auto companies reporting concerns about shortages of parts in
their supply chains, which in turn could well see production slowdowns," says Michael Hewson,
chief market analyst at CMC Markets UK.
In corporate news, Covestro shares are likely to take a hit after the German
chemicals maker warned on first quarter and 2020 profits citing stiff competition and low
prices.
Meanwhile, container shipping company Hapag-Lloyd raised its 2019 profit forecast
on higher freight rates.
(Thyagaraju Adinarayan)
*****
(Reporting by Danilo Masoni, Joice Alves, Julien Ponthus and Thyagaraju Adinarayan)
