LIVE MARKETS-Europe before the bell: tentative stabilisation, Spain down

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

EUROPE BEFORE THE BELL: TENTATIVE STABILISATION, SPAIN DOWN

European shares were expected to steady on Wednesday after the outbreak of conflict in Iran triggered their biggest two‑day drop since Liberation Day, dragging the STOXX 600 .STOXX down from record highs to one‑month lows.

Spanish futures .IBEX, however, fell 1% after U.S. President Donald Trump threatened a full trade embargo on Spain after the NATO ally refused to let the U.S. military use its bases for missions linked to strikes on Iran.

Analysts said Trump's decision could stall Santander’s SAN.MC $12.2 billion acquisitionof U.S. regional lender Webster Financial WBS.N.

Euro STOXX 50 .STOXX50E, DAX .GDAXI and FTSE .FTSE futures edged up between 0.2% and 0.5%.

As the indiscriminate selling pressure seen since Monday in the region appeared set to pause, corporate news could again drive stock moves, even though investors remained nervous over the impact of surging oil and gas prices as U.S. forces continued a round-the-clock assault on Iran.

Traders called shares in sportswear maker Adidas ADSGn.DE lower after results, while ASMI ASMI.AS could bounce following better‑than‑expected quarterly earnings, potentially helping the broader semiconductor sector.

In the UK, insurer Beazley BEZG.L reported a 19% drop in annual pre‑tax profit amid a softening insurance‑pricing environment and weak growth in its cyber‑insurance business.

(Danilo Masoni)

EARLIER ON LIVE MARKETS

STOCKS DUMP MORE ON OIL SHOCK FEARS CLICK HERE