Europe Factors to Watch-Shares set to rise; earnings in focus
PARIS, Oct 28 (Reuters) - European stocks were set to rise on Tuesday, reversing the previous session's dip as better-than-expected results from a number of blue-chips including Novartis and UBS helped lift sentiment. At 0732 GMT, futures for Euro STOXX 50, for UK's FTSE 100, for Germany's DAX and for France's CAC were up 0.5-0.9 percent. Energy stocks will be in focus after oil major BP said it will raise dividends for the third quarter despite the recent sharp drop in oil prices, while trimming organic capital expenditure for the full year. Swiss lender UBS said it booked 1.8 billion Swiss francs ($1.9 billion) in third-quarter charges as it discusses a settlement to an investigation that it and other banks rigged foreign exchange rates. Even including the charge, UBS posted a 32 percent rise in quarterly profit, beating forecasts. Swiss drugmaker Novartis reported better-than-expected results on Tuesday, as a pre-tax gain from the sale of its Idenix shareholding offset full copycat competition to its former best-selling blood pressure pill Diovan. Bucking the trend, French drugmaker Sanofi posted weaker-than-expected quarterly sales, blaming pricing pressures on its lucrative diabetes business that it warned would drag on throughout next year. About a quarter of companies listed on the STOXX Europe 600 benchmark index have reported results so far in the earnings season, with 66 percent of them meeting or beating profit forecasts, and 61 percent meeting or beating revenue forecasts, according to Thomson Reuters Starmine data. In absolute terms, European companies have posted a 12.6 percent rise in quarterly earnings, and a 1.9 percent rise in revenue. Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0732 GMT: LAST PCT CHG NET CHG S&P 500 1,961.63 -0.15 % -2.95 NIKKEI 15329.91 -0.38 % -58.81 MSCI ASIA EX-JP 476.57 0.67 % 3.17 EUR/USD 1.2711 0.1 % 0.0013 USD/JPY 107.86 0.05 % 0.0500 10-YR US TSY YLD 2.257 -- 0.00 10-YR BUND YLD 0.878 -- 0.00 SPOT GOLD $1,229.25 0.34 % $4.11 US CRUDE $80.78 -0.27 % -0.22 > GLOBAL MARKETS-ASIAN SHARES, DOLLAR TREAD CAUTIOUSLY AHEAD OF FED > WALL ST FLAT AFTER LAST WEEK'S BIG GAIN; ENERGY WEIGHS > TOKYO'S NIKKEI SHARE AVERAGE CLOSES DOWN 0.38 PCT > TREASURIES-U.S. BOND PRICES EDGE UP ON WEAK DATA, BRAZILIAN ELECTION > DOLLAR STRUGGLES AS SOFT DATA PUSH YIELDS LOWER, FED AWAITED > PRECIOUS-GOLD RECOVERS FROM 2-WEEK LOW, ALL EYES ON FED MEET > METALS-LME COPPER HOVERS NEAR 2-WEEK HIGH, SUPPLY CONCERNS SUPPORT > BRENT FALLS TOWARDS $85 AMID SUPPLY GLUT, LOWER PRICE FORECASTS COMPANY NEWS: UBS UBS said it booked 1.8 billion Swiss francs ($1.9 billion) in third-quarter charges as it discusses a settlement to a investigation that it and other banks rigged foreign exchange rates. Even including the charge, UBS posted a 32 percent rise in quarterly profit, beating forecasts. NOVARTIS The Swiss drugmaker reported better-than-expected results on Tuesday, as a pre-tax gain from the sale of its Idenix shareholding offset full copycat competition to its former best-selling blood pressure pill Diovan. BP Oil major BP said on Tuesday it will raise dividends for the third quarter by 5.3 percent year-on-year to 10 cents per ordinary share while trimming organic capital expenditure for the full year. KPN The Dutch telecoms group on Tuesday reported better-than-expected results for the third quarter as the pace of revenue decline at its consumer mobile and business units slowed. SANOFI The French drugmaker stuck to its full-year profit forecast but posted weaker-than-expected quarterly sales on Tuesday, blaming pricing pressures on its lucrative diabetes business that it warned would drag on throughout next year. MEDIOBANCA The Italian bank is not interested in any merger and acquisition operations, Chief Executive Alberto Nagel said on Tuesday. It said its net profit fell 6.4 percent in the first three months of its financial year as one-off capital gains boosted the previous year's figure. LLOYDS BANKING GROUP The lender said it would set aside a further 900 million pounds ($1.45 billion) to compensate customers for mis-sold loan insurance, bringing its total bill so far to over 11 billion pounds. ALFA LAVAL The Swedish engineering group posted on Tuesday third quarter core earnings of 1.55 billion crowns ($212 million), marginally above market expectations, and said it expected demand to be roughly unchanged in the final quarter of 2014. HOLCIM, LAFARGE The two building materials groups said on Tuesday they had formally notified the European Commission of their merger plan. STANDARD CHARTERED PLC The lender said operating profit for the third quarter fell 16 percent, hurt by rising costs from the restructuring of its South Korean business and a doubling of impaired loans. MONTE PASCHI DI SIENA Italy's Monte dei Paschi di Siena is likely to have to sell assets to fill a capital hole uncovered by European regulators, with shareholders reluctant to stump up cash after a recent fundraising and would-be buyers of the bank holding back. UNICREDIT UniCredit, Italy's biggest bank by assets, does not plan to distribute excess capital, Chief Executive Federico Ghizzoni said on Monday. CELESIO German drug distributor lowered its 2014 operating profit forecast on Tuesday, saying the unfavourable situation in Germany, France and Brazil was affecting earnings more than previously expected. TECHNIP The oil services company said that in a joint venture with Fluor Corporation, it won an engineering, procurement, and construction management contract from Sasol for its world scale ethane cracker and derivatives complex near Lake Charles, Louisiana. Financial terms were not disclosed. KVAERNER The Norwegian oil services firm which builds large structures like platforms, posted third-quarter earnings above expectations on Tuesday and raised its full-year revenue guidance. MAN SE The group slightly lowered its full-year profit forecast as third-quarter underlying earnings slumped by half to 82 million euros ($104.16 million) amid weakening truck demand. BG GROUP Britain's third-biggest energy company reported a worse-than-expected 26 percent fall in third-quarter operating profit on the back of a continued decline of production in Egypt and a steep drop in oil prices. (Reporting by Blaise Robinson; Editing by Francesco Canepa)
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