REFILE-Europe Factors to Watch-Shares set to rise ahead of Fed

miércoles 29 de octubre de 2014 03:37 GYT
 

(Refiles to add dropped "of" in the lead)
    PARIS, Oct 29 (Reuters) - European stocks were set to climb on Wednesday,
adding to the previous session's rally and tracking sharp gains on Wall Street
ahead of the U.S. Federal Reserve's latest policy announcement when it concludes
a two-day meeting later in the day.
    The Fed is expected to announce the end of its bond-buying stimulus while
restating its willingness to wait before hiking interest rates, which should
reassure markets. 
    Banking stocks will be in the spotlight after Deutsche Bank 
reported a net loss in the third quarter as heavy legal costs weighed on
earnings, while a modest rise in investment banking results lagged many of the
big gains seen by its peers. 
    Energy shares will also be in focus after French oil major Total 
said net adjusted profit fell 2 percent to $3.56 billion in the third quarter
from a year ago, as a rise in refining margins only partly offset a drop in oil
prices and lower oil and gas production. 
    About a third of companies listed on the STOXX Europe 600 benchmark
index have reported results so far in the earnings season, with 67 percent of
them meeting or beating profit forecasts, and 59 percent meeting or beating
revenue forecasts, according to Thomson Reuters Starmine data.
    In absolute terms, European companies have posted a 13.6 percent rise in
quarterly earnings, and a 0.7 percent rise in revenue.
    At 0720 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were up 0.3-0.4 percent.
    U.S. stocks rose more than 1 percent on Tuesday, with the S&P 500 
ending above its 50-day moving average for the first time in almost a month,
helped by strong quarterly results from a number of blue-chips.
    The European Commission cleared France and Italy's modified 2015 budgets on
Tuesday after both countries agreed to trim their deficits further, ending a
stand-off between Brussels and the two centre-left governments. 
        
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
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  MARKET SNAPSHOT AT 0720 GMT: 
    
                                         LAST   PCT CHG  NET CHG
 S&P 500                             1,985.05    1.19 %    23.42
 NIKKEI                              15553.91    1.46 %      224
 MSCI ASIA EX-JP                       482.17    1.09 %     5.22
 EUR/USD                               1.2738    0.03 %   0.0004
 USD/JPY                               108.06   -0.07 %  -0.0800
 10-YR US TSY YLD                       2.293        --     0.01
 10-YR BUND YLD                         0.883        --     0.01
 SPOT GOLD                          $1,230.10     0.2 %    $2.40
 US CRUDE                              $81.95    0.65 %     0.53
 
  > ASIAN SHARES SOAR TO 1-MONTH HIGH ON EARNINGS, FED OPTIMISM 
  > US STOCKS-WALL ST JUMPS 1 PCT, S&P ENDS ABOVE KEY LEVEL 
  > TOKYO'S NIKKEI SHARE AVERAGE CLOSES UP 1.46 PCT 
  > TREASURIES-PRICES EASE AS WALL ST RALLIES, FED MEETS 
  > DOLLAR HOLDS STEADY AHEAD OF FED, SWEDISH CROWN BRUISED BY RATE CUT 
  > PRECIOUS-GOLD HOLDS NEAR $1,230, FED EYED 
  > NICKEL STRETCHES GAINS AS INDUSTRY BUYS ON CHINA SUPPLY WORRIES 
  > BRENT STEADY ABOVE $86 AS MARKET AWAITS FED STATEMENT 
    
    COMPANY NEWS:
    
    DEUTSCHE BANK 
    The lender reported a net loss in the third quarter as heavy legal costs
weighed on earnings, while a modest rise in investment banking results lagged
many of the big gains seen by its peers. 
    
    TOTAL 
    French oil major Total said net adjusted profit fell 2 percent to
$3.56 billion in the third quarter from a year ago, as a rise in refining
margins only partly offset a drop in oil prices and lower oil and gas
production. 
    
    SANOFI 
    Sanofi will hold a special board meeting on Wednesday at 0700 GMT to examine
the French drugmaker's management structure, a source close to Sanofi told
Reuters. 
    The boss of drugmaker Sanofi Chris Viehbacher could not say on Tuesday if he
had the support of his board and confirmed to Reuters that his chairman declined
to clarify his future during a meeting the previous day. 
    Sanofi said Thierry Desmarest had resigned from its board to focus on his
role as chairman of oil group Total following the sudden death of
Christophe de Margerie. 
    
    AIR FRANCE-KLM 
    The group said on Wednesday its third-quarter operating profit more than
halved to 247 million euros (315 million), while revenue fell 6.7 percent due to
the combined effects of last month's pilot strike and a sluggish market
environment. 
    
    VIVENDI 
    Vivendi said its SFR mobile division posted a 2.9 percent drop in revenue in
the first nine months of the year, pulled down by its retail business.
 
    
    SACYR, REPSOL 
    Creditor banks lead by Santander are asking Spanish builder Sacyr to sell a
3 percent stake in Repsol in order to refinance the loan it took to buy its
total 9 percent in the oil major, El Confidencial said on Wednesday.
    
    SCHNEIDER ELECTRIC 
    The group stuck to its full-year forecasts on Wednesday after reporting a 7
percent rise in third-quarter sales and said Western Europe showed long-awaited
but fragile signs of stabilisation. 
    
    BANCA MONTE DEI PASCHI DI SIENA 
    The lender may seek to delay repaying hundreds of millions of euros in state
aid to help shore up its balance sheet as it explores strategic options which
could include a merger, chairman Alessandro Profumo said on Tuesday.
    
    STATOIL 
    The Norwegian energy firm reported an unexpected third-quarter net loss,
weighed down by a string of impairment charges on projects from Canada to
Angola. Statoil made a net loss of 4.8 billion Norwegian crowns against a 13.7
billion crown profit a year ago, missing expectations for a 9.5 billion crown
profit.
    
    TELENOR 
    The Norwegian telecoms firm posted third-quarter earnings in line with
expectations and kept its full-year outlook. Adjusted EBITDA rose to 10.26
billion Norwegian crowns from 9.62 billion crowns a year ago, roughly in line
with a forecast of 10.04 billion crowns in a Reuters poll of analysts.
    
    STOREBRAND 
    The Norwegian insurer reported a smaller than expected drop in third-quarter
results and said it is more than half way through amassing the funds it needs to
pay for Norwegians' increased life expectancy. Group profit fell to 632 million
crowns ($95.5 million) from 811 million a year ago, beating the 599 million
crowns forecast in a Reuters poll of analysts.
    
    NUMERICABLE 
    The French cable telecoms operator says it is launching a 4.7 billion euro
capital increase. 
    
    AIRBUS GROUP 
    The group said on Tuesday it plans to start production at its first U.S.
factory with the larger A321 jetliner instead of the A320 as originally planned,
a move that reflects rising demand for the bigger jet. 
    
    FUGRO 
    The Dutch marine services group warned on Wednesday that it will not pay a
dividend over 2014 due to deteriorating markets and price pressure on oil and
gas projects. 
    

 (Reporting by Blaise Robinson; Editing by Alistair Smout)