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