European Factors to Watch-Shares to rise on bank checks relief

lunes 27 de octubre de 2014 03:26 GYT
 

(Adds further company news)
    LONDON, Oct 27 (Reuters) - European shares were set to rise at the open on
Monday after the results of the region's banking sector health checks painted a
brighter picture than many investors had expected.
    At 0724 GMT Futures for the Euro STOXX 50 equity index, Germany's
DAX and France's CAC were between 0.9 percent and 1 percent
higher, while contracts on Britain's FTSE 100 were up by 0.8 percent.
    Shares in Germany's Deutsche Bank and Commerzbank were
seen opening up by 2 percent and 2.7 percent, respectively.
    Investors gave a cautious thumbs-up to the European Central Bank's health
check of euro zone banks, describing it as a step in the right direction rather
than the final word on the state of the bloc's financial system. 
    Roughly one in five of the euro zone's top lenders failed landmark health
checks at the end of last year but most have since repaired their finances, the
ECB said on Sunday. 
    "Bank equity should be boosted by additional transparency and some
'potential fails' are likely to rally on the clarity," Societe Generale analysts
wrote in a note.
    "Overall the market must now move on to the bigger problems of credit demand
and the lingering prospect of deflation - which will take more determined
efforts from governments to fix."
    The ECB will publish lending and money supply data at 0900 GMT.
    
    COMPANY NEWS:    
    MONTE DEI PASCHI DI SIENA 
    Italy's Monte dei Paschi di Siena faces a 2.1 billion euro ($2.7 billion)
funding shortfall that could force it to seek a merger, after a European banking
review revealed serious weak points in the Italian financial system.
 
    
    LLOYDS BANKING GROUP    
    Britain's Lloyds Banking Group narrowly passed a test set by European
regulators to assess whether banks have enough capital to weather another
economic crash, calling into question its chances of re-starting dividends.
 
    
    DEUTSCHE BANK 
    Deutsche Bank incurred fines and litigation costs of 1.363 billion euros
($1.73 bln) from January to September 2014, data released by the ECB showed on
Sunday. 
    
    CAIXABANK BANKIA 
    Spain's Caixabank and Bankia posted a rise in nine-month profits, as their
core banking performance was boosted by lower costs and higher charges to
clients. 
    
    UNICREDIT 
    UniCredit has entered final phase talks to sell its debt recovery unit and a
chunk of bad debt, two sources close to the matter told Reuters on Friday, a
move aimed at strengthening its balance sheet and freeing up funds for new
lending. 
    
    SSAB  
    Steelmaker posted on Monday a third-quarter adjusted operating profit above
expectations and predicted relatively stable prices and volumes in Europe in the
fourth quarter. 
    
    TNT EXPRESS 
    Dutch logistics company TNT Express said on Monday it had made a loss in the
third quarter on lower revenues, with earnings hit by near flat demand in key
European markets and the cost of setting aside money to settle a French
competition case. 
    
    RHEINMETALL, THYSSENKRUPP 
    German tank manufacturer Rheinmetall is close to buying steel group
ThyssenKrupp's marine systems business, according to Wirtschaftswoche.
 
    
    TELECOM ITALIA  
    Telecom Italia said on Saturday it would sell only part of its majority
stake in Telecom Argentina and the rest once the regulator approved
its full sale to New York-based fund Fintech, owned by Mexican billionaire David
Martinez. 
    
    BP, TOTAL 
    Tanzania has held talks with France's Total and Britain's BP over
oil and gas exploration, its energy ministry said on Saturday, aiming to add to
major companies active in its thriving energy sector. 
    
    AREVA, SIEMENS 
    The French-German consortium Areva-Siemens, the supplier of Finland's
much-delayed Olkiluoto-3 nuclear reactor, has increased its claim against
Finnish utility Teollisuuden Voima (TVO), TVO said late on Friday.
 
    
    ODIGEO 
    British Airways and Spain's Iberia said they are posting their fares again
on the French and Spanish websites of online travel agency eDreams ODIGEO, after
resolving a dispute over what is included in the prices displayed.
 
    
    MAJOR MACROECONOMIC DATA/EVENTS (GMT)  :
    
 09:00  Euro Zone-M3 Money Supply - Money-private loans   Sep. 2014
 09:00  Euro Zone-M3 Money Supply - Money-M3 annual       Sep. 2014
        grwth                                             
 09:00  Germany-Ifo - Ifo expectations                    Oct. 2014
 09:00  Germany-Ifo - Ifo current conditions              Oct. 2014
 09:00  Germany-Ifo - Ifo business climate                Oct. 2014
 11:00  United Kingdom-CBI reported sales - CBI           Oct. 2014
        Distributive Trades                               
 13:45  United States-Mkit services Flash - Markit Svcs   Oct. 2014
        PMI                                               
 14:00  United States-Pending home sales - Pending sales  Sep. 2014
        change mm                                         
 
    
------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0707 GMT:
    
                                                     LAST     PCT CHG   NET CHG
 S&P 500                                         1,964.58      0.71 %     13.76
 NIKKEI                                          15388.72      0.63 %     97.08
 MSCI ASIA EX-JP                                   473.51       0.1 %      0.49
 EUR/USD                                           1.2685      0.12 %    0.0015
 USD/JPY                                           108.06     -0.07 %   -0.0800
 10-YR US TSY YLD                                   2.284          --      0.01
 10-YR BUND YLD                                     0.903          --      0.02
 SPOT GOLD                                      $1,229.20     -0.14 %    -$1.76
 US CRUDE                                          $81.20      0.23 %      0.19
 
  
  > ASIA UP AS UPBEAT EARNINGS, DATA SHARPEN RISK APPETITE        
  > WALL ST BOOSTED BY EARNINGS, S&P POSTS BEST WEEK IN NEARLY TWO YEARS 
  > NIKKEI ADVANCES ON WEAKER YEN; INVESTORS AWAIT EARNINGS SEASON       
  > U.S. BOND PRICES STEADY AS EBOLA FEARS RETREAT                     
  > EURO COMES SAFELY THROUGH ECB STRESS TEST, AUSSIE UP              
  > GOLD STRUGGLES AS STRONGER EQUITIES HURT SAFE-HAVEN APPEAL         
  > LME COPPER DRIFTS LOWER AS SUPPLY PICK-UP PRESSURES PRICES        
  > BRENT DROPS BELOW $86 AFTER GOLDMAN CUTS PRICE FORECASTS            

 (Reporting by Francesco Canepa; Editing by Sudip Kar-Gupta)