* European shares rise 0.8%
* Autos help lift DAX to all-time high
* Eyes on final PMIs, UK budget
* Wall Street futures rise
March 3 - 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
IN FAVOUR OF SUSTAINABLE DIVIDENDS (0909 GMT)
With equities across the globe flirting with their all-time highs, dividends are coming back, probably stronger than ever, as a key point in stock investing.
According to Columbia Threadneedle, the pandemic is likely to change the mix of capital return as many companies understood that “a focus on sustainable dividends is vital”, while better recognising "the flexibility that share repurchases and special dividends provide.”
The asset manager expects global dividends “to rise 10% (in 2021) despite the continuing pandemic,” with the materials sector likely to see a growth “of more than 15% driven by buoyant commodity prices.”
“Banks and insurers are likely to see dividends resume later this year, but this may be slower than investors would like with the regulator waiting until we are out of the woods.”
"This pandemic will likely make genuine dividend sustainability even more greatly prized in this disrupted world,” Columbia Threadneedle's portfolio manager Jonathan Crown says in a research note.
(Stefano Rebaudo)
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NEW RECORD PEAK FOR THE DAX (0833 GMT)
It's clearly risk-on at the open in Europe.
Cyclicals are steaming ahead led by auto stocks continuing their rally and driving Germany's DAX to a new all-time high, as Merkel prepares to gradually relax COVID curbs.
Defensives are generally weaker as bond yields steadied well below recent worrying levels.
The DAX is rising 0.9%, while the FTSE is well bid too, up 1%, ahead of UK budget measures to boost the economy.
In the chart the German index.
(Danilo Masoni)
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SHOTS HAVING EFFECT (0807 GMT)
Covid-19 contagion rates are falling steadily, central bankers are making soothing noises, economic data looks robust and vaccination campaigns are proceeding. And bond markets too have calmed, with the U.S. 10-year Treasury yield even dipping under 1.4%, well off last week's peaks above 1.61%.
No wonder, world stocks are marching back toward peak levels. After a positive session in Asia, European and U.S. futures are both heading north, up 0.5-0.9%.
We get another snapshot of the world economy from final PMI figures in a range of countries but advance readings have looked good. Australia's GDP data smashed estimates by expanding 3.1% in Q4. And while Chinese services sector activity grew at its slowest pace in 10 months, it remained above the 50-mark separating growth from contraction.
As demand for safe-havens abated, the U.S. dollar slipped from near one-month highs. Commodity currencies such as the Aussie dollar and Norwegian crown benefited, building on the chunky gains of the past two days.
Central bankers will another chance to dissipate any fears over inflation or the timing for tapering stimulus, with Fed's Bostic and ECB's de Guindos among those due to speak.
Finally the UK budget. Will British finance minister Rishi Sunak choose to enlarge budget holes or seek to fill them? Probably a mix. Goldman Sachs analysts are among those who see recent his hawkish tone as political positioning. They anticipate 60 billion pounds in fiscal stimulus.
Key developments that should provide more direction to markets on Wednesday:
* The U.S. will have enough COVID-19 vaccine for every adult by the end of May, President Joe Biden said
* Final services PMI
* Euro zone PPI
* Poland’s central bank meeting
* UK budget
* US ADP employment
* Fed speakers: Atlanta Fed’s Raphael Bostic 1900 GMT; Philadelphia President Patrick Harker 1500 GMT; Chicago Fed’s Charles Evans; Dallas Fed’s Rob Kaplan 2300 GMT
* ECB speakers: Board member Fabio Panetta 1300 GMT; Vice President Luis de Guindos 1500 GMT; ECB board member Isabel Schnabel 1930 GMT
* BOE speakers: board member Silvana Tenreyro 1600 GMT
(Danilo Masoni)
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MORNING CALL: EUROPE ON THE UP (0623 GMT)
European shares look set for a third straight session of gains helped by optimism about the economic recovery, while bond markets stabilise after flaming up last week.
The mood in Asia was positive overnight and that's spilling over to Europe where futures point to gains of around 0.3-0.5%.
Wall Street futures are also heading north, up 0.4-0.6%, after retreating on Tuesday led by a drop in big tech stocks.
(Danilo Masoni)
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