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