LIVE MARKETS-Before the bell: eyes on Switzerland, UK motor finance update

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BEFORE THE BELL: EYES ON SWITZERLAND, UK MOTOR FINANCE UPDATE

European shares were set for a positive start on Monday, rebounding from their biggest one-day drop in over three months on Friday, following another round of U.S. tariff announcements, including a 39% levy on Switzerland and a surprisingly weak U.S. jobs report.

Swiss stocks, however, were poised for a sharply lower opening, as trading resumed after a holiday on Friday. Futures on the SMI .SSMI benchmark index were down over 2%. Swiss manufacturers said tens of thousands of jobs were at risk. Drugmakers Roche ROG.S and Novartis NOVN.S were not included in the 39% rate.

EuroSTOXX50, DAX and FTSE futures meanwhile were up around 0.5%. Contracts on the S&P 500 also rose slightly.

In the UK, eyes were on Lloyds LLOY.L and other banking stocks, after the financial regulator proposed a redress scheme for consumers with motor finance compensation claims, estimating the cost at between 9 billion and 18 billion pounds.

"This is consistent with our estimates, and, most importantly, we think it largely de-risks Lloyds' shares from the 'motor issue'", wrote Jefferies analysts.

Lloyds and other lenders including Close Brothers CBRO.L, Barclays BARC.L and the UK units of Santander SAN.MC and Bank of Ireland BIRG.I, have already set aside nearly 2 billion pounds ($2.66 billion) between them to cover potential compensation claims.

In other news, PostNL PTNL.AS confirmed its guidance, UBS UBSG.S agreed to pay $300 million to settle U.S. mortgage securities cases.

(Danilo Masoni)

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