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.

TIME TO LOOK AT EUROPE'S BEATEN-DOWN EXPORTERS?

Under the calm surface of European stock markets, a huge performance gap has opened up between soaring domestic-focused stocks and their lagging, export-oriented peers.

But according to Barclays, investors should get prepared for a possible reversal.

Strategist Emmanuel Cau at the UK bank notes the gap has been backed by fundamentals. Domestic sectors like banks and utilities saw stronger earnings momentum, while exporters like carmakers were hit by from tariff risks and a stronger euro.

Now, however, Barclays believes those headwinds could be peaking. More importantly, it sees positioning as stretched to "near extreme" levels, with domestic stocks looking "far more crowded" than unloved exporters.

The takeaway? It might be time to hunt for bargains.

"We believe this opens the door for selective opportunities among European exporters that have significantly underperformed despite steady earnings expectations," Cau writes.

For more on the trade, check out JPMorgan here: "Stay bullish on domestic vs exporter stocks"

(Danilo Masoni)

*****

EARLIER LIVE MARKETS POSTS:

$1.30 AND BEYOND FOR THE EURO, SAY MORGAN STANLEY CLICK HERE

THE GREAT EURO ZONE EMPLOYMENT SPLIT IS GOOD FOR THE ECB CLICK HERE

"NOT THE MARKET TO MISS": UBS FLAGS FRAGILE BANK RALLY CLICK HERE

SOME BIG POST-RESULTS STOCK FALLS CLICK HERE

EUROPE BEFORE THE BELL: EARNINGS GET GOING CLICK HERE

MORNING BID EUROPE: TARIFF IMPRINT SPIED IN US CPI CLICK HERE