European Factors to Watch-Stocks to consolidate after sharp rally
EDINBURGH, June 11 (Reuters) - European stocks were seen opening steady on Wednesday, consolidating after a three-week rally led several indexes back to multi-year highs, leaving indexes at risk of a pullback in the short term. The pan-European FTSEurofirst 300 ended up 0.3 percent at 1,398.18 points on Tuesday, led by gains in defensive Swiss blue-chips such as drugmaker Novartis and food giant Nestle. The gains in Europe saw the FTSEurofirst 300 and the Euro STOXX 50 hit their highest since January 2008 and September 2008 respectively, while the German DAX hit an all-time high. However, all three indexes entered "overbought" territory. The relative strength index (RSI), a widely used momentum indicator, rose above 70 on all three indexes, which is considered "overbought" and could signal a pause in the rally or a pull-back in the short term. At 0619 GMT, futures for the Euro STOXX 50, Britain's FTSE 100 , Germany's DAX and France's CAC were between 0.1 percent lower and 0.1 percent higher. "The lack of direction early in the session is probably just a case of traders taking a breather following a few positive days for equities," Craig Erlam, market analyst at Alpari, said. "In recent days we have seen the DAX breach, and hold above, 10,000 for the first time... we're not seeing any significant corrections along the way, with indices simply taking short breathers before continuing on the path higher." A relatively busy corporate earnings calendar could help to provide direction, after Swedish budget fashion retailer Hennes & Mauritz and Spanish rival Inditex both posted results that beat forecasts. As well as retailers, Italy's Banca Monte Paschi will be in focus, with the bank's shares jumping 40 percent over two days of a share sale, despite having not traded. Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0640 GMT: LAST PCT CHG NET CHG S&P 500 1,950.79 -0.02 % -0.48 NIKKEI 15069.48 0.5 % 74.68 MSCI ASIA EX-JP 493.98 -0.11 % -0.56 EUR/USD 1.3544 -0.02 % -0.0003 USD/JPY 102.30 -0.05 % -0.0500 10-YR US TSY YLD 2.653 -- 0.02 10-YR BUND YLD 1.429 -- 0.02 SPOT GOLD $1,261.00 0.04 % $0.51 US CRUDE $104.44 0.09 % 0.09 > GLOBAL MARKETS-Euro under fire in Asia, stocks sit on gains > US STOCKS-Wall St ends near flat; Dow hits record for 4th day > Nikkei bounces as MSCI review supports sentiment, BOJ eyed > U.S. 10-yr treasury yields hit 1-mth high on rate hike focus > FOREX-Euro slips, dented by ECB easing, yield gap vs dollar > PRECIOUS-Palladium slips from 3-1/2-year high; gold steady > METALS-Shanghai zinc jumps 2 pct on improving demand > Brent rises near $110 on expected fall in US gasoline stocks COMPANY NEWS BANCA MONTE DEI PASCHI DI SIENA Italian bank Monte dei Paschi's 5 billion euro capital raising caused confusion on the Milan stock exchange on Tuesday, where the bank's shares have jumped 40 percent in two days but have not traded. Shares in Italian lender Banca Monte dei Paschi di Siena closed up 19.9 percent on Tuesday at 2.216 euros on the second day of a 5 billion euro ($6.8 billion) share sale, according to Reuters data. The Italian stock market said on Tuesday the blue-chip FTSE MIB index had closed up 0.33 percent at 22,502 after adjustments made for Banca Monte Paschi di Siena securities. HENNES & MAURITZ Swedish budget fashion retailer Hennes & Mauritz HMb.ST said on Wednesday its sales rose 19 percent in May, easily beating a forecast of 11.5 percent in a Reuters poll of analysts. INDITEX Spanish fashion firm Inditex reported a smaller drop in first-quarter profit than forecast on Wednesday E.ON A unit of E.ON in Brazil, Enerva, is facing a high double-digit million euro fine for not bringing the gas power station Parnaiba on stream in time, Rheinische Post reported. Related news AIRBUS Emirates has cancelled an order for 70 of the group's newest aircraft, the A350 XWB, Airbus said on Wednesday. Separately, Airbus Helicopters is among companies involved in talks for a $2 billion Japanese military transport deal, sources told Reuters. REMY COINTREAU The spirits group named luxury sector specialist Valerie Chapoulaud-Floquet as the new chief executive of the company, which is grappling with falling cognac sales due to weak demand in China. ELIOR Shares in Europe's third-largest catering group will be priced at 14.75 euros in its stock market return on Wednesday, which would allow it to raise at least 847 million euros to cut debt and fund expansion. BOUYGUES Bouygues unit Bouygues Telecom is due to hold a works council meeting on Wednesday at which management is expected to present its restructuring plan. It said on May 15 it was looking for an extra 300 million eurosin annual cost savings by 2016. Union sources have said they fear between 1,500 and 2,000 job cuts. THALES France's Thales said on Tuesday it closed the acquisition of U.S. carrier JetBlue Airways' LiveTV unit. (Reporting by Alistair Smout; Editing by Anand Basu)
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