European Factors to Watch-Shares seen edging lower
(Adds company news) LONDON, June 10 (Reuters) - European shares headed for a slightly weaker open on Wednesday after a 3-1/2-month low in the previous session, with higher bond yields and lingering concerns about Greece's debt situation seen as prompting investors to trim equity holdings. At 0613 GMT, futures for the Euro STOXX 50, France's CAC, Germany's DAX and Britain's FTSE 100 were down 0.1 to 0.4 percent. "European indices look to extend losses on the back of Greek uncertainty and rising bond yields," Craig Erlam, senior market analyst at Oanda said. "Greek uncertainty is still very apparent in the markets and is likely to continue to weigh on investor sentiment. There are signs of occasional progress but there is very much a case of two steps forwards and one step back." "Bond market volatility is likely to continue to be a thorn in the side of the equity market for the foreseeable future as higher inflation expectations, low interest rates and low liquidity lead to occasional periods of excessive volatility." U.S. Treasuries yields rose on Tuesday, with benchmark yields reaching seven-month highs on selling spurred by this week's flood of debt supply. Traders also blamed the rise in U.S. yields on a renewed selloff of German Bunds. A planned meeting between the leaders of Germany, France, and Greece on Wednesday was in doubt as Greece's reform proposals to unlock new funding to ward off a debt default fell well short, European Union officials said. The FTSEurofirst 300 index of top European shares fell for a sixth straight session on Tuesday and ended 0.4 percent lower at 1,522.29 points after falling to 1,507.72, the lowest since mid-February. COMPANY NEWS SAINSBURY'S British supermarket Sainsbury's posted a sixth straight quarter of declining underlying sales as deflation continued to weigh on the business. CAPGEMINI The French IT services company said it was launching a 500 million euro capital increase to help fund its planned acquisition of U.S. rival IGATE Corp . SMA SOLAR, SIEMENS Germany's top solar company SMA Solar and engineering giant Siemens have formed a partnership to offer large-scale photovoltaic plants, SMA said on Wednesday. INDITEX Spain's Inditex the owner of Zara fashion stores, posted a 28 percent rise in first quarter net profit on Wednesday as warm European weather and a recovering economy underpinned sales. BARCLAYS, RBS, DEUTSCHE BANK Ratings agency Standard & Poor's downgraded several U.K. and German banks, including Deutsche Bank and Barclays, saying it considers government support for these banks to be uncertain. ORANGE Fitch Ratings said it has revised Orange's outlook to "stable" from "negative", while affirming its Long-Term Issuer Default Rating (IDR) at 'BBB+. BNP PARIBAS The chairman and chief executive of BNL, the Italian unit of French bank BNP Paribas, will stand trial in Italy for alleged fraud in relation to the sale of derivatives products by the bank, judicial sources said. SANTANDER Spain's Santander is in talks for the possible acquisition of HSBC's Brazil arm for an estimate $4 billion, El Confidencial reported, citing sources close to the operation. SOCIETE GENERALE Swiss banks Societe Generale Private Banking SA and Berner Kantonalbank AH have agreed to pay the United States multi-million dollar penalties under a resolution announced on Tuesday by the U.S. Justice Department. ALLIANZ Allianz unit Pimco slashed its holdings of U.S. government-related debt in its flagship Pimco Total Return Fund by almost two-thirds in May from the prior month, the firm reported on its website on Tuesday, as it braces for the Federal Reserve to hike interest rates. HEIDELBERGCEMENT The company said it would pay out more to shareholders as it stays on the sidelines of a mega-merger between rivals Holcim and Lafarge . NOVARTIS Novartis AG said one-year results of its drug secukinumab show it is effective in treating patients with ankylosing spondylitis (AS), a debilitating joint condition of the spine. For more, click on ROCHE Roche said it received breakthrough therapy designation from the U.S. health regulator for its Actemra treatment in systemic sclerosis. For more, click on RWE RWE is in talks with an Abu Dhabi investor about joint renewable energy projects in the United Arab Emirates and possibly in the Gulf region, the German utility's chief executive said. AIRBUS Airline executives are showing increasing interest in a new version of Airbus' A321neo jetliner, in a further sign that the forthcoming plane is taking the battle to Boeing, lessor BOC Aviation Chief Executive Robert Martin said. FRAPORT Brazil's state-run airport operator Infraero will spin off its services business into a new company to be created in partnership with Germany's Fraport, Brazil's aviation minister Eliseu Padilha said on Tuesday following the announcement of a $64-billion infrastructure investment program. GERRY WEBER Fashion group Gerry Weber no longer expects to meet its targets for revenue and earnings for the 2014/15 financial year, blaming a shrinking market and saying it would cut costs to try to get back on track. WINCOR NIXDORF U.S. automated teller machine maker Diebold Corp is in talks about a possible acquisition of its troubled German rival Wincor Nixdorf, sources with knowledge of the negotiations told Reuters. AENA, ACERINOX Aena and Acerinox entered Spain's blue-chip index, while Acciona and BME left, the market operator said late on Tuesday. BANCA POPOLARE DI MILANO The lender has hired advisers Citi and Lazard to help it look at merger options as the countdown starts for large Italian cooperative banks to transform into joint-stock companies. ENI Chief Executives of Russia's Gazprom and Italy's ENI, Alexei Miller and Claudio Descalzi, met in Milan on Tuesday and discussed Turkish Stream as well as a potential capacity increase at Blue Stream, Gazprom said. GLAXOSMITHKLINE A single dose of GlaxoSmithKline's human papillomavirus (HPV) vaccine could prevent the majority of cervical cancers, saving money and improving uptake of a potentially life-saving vaccination, scientists said on Wednesday. UNILEVER Swiss chocolate maker Barry Callebaut said on Wednesday it is naming Unilever executive Antoine de Saint-Affrique as its new Chief Executive effective in October, replacing Juergen Steinemann, who is stepping down in August. MAJOR MACROECONOMIC DATA/EVENTS (GMT) : 0645 FR Industrial Output 0830 GB Industrial Output 1100 US Mortgage Market Index ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0518 GMT: LAST PCT CHG NET CHG S&P 500 2,080.15 0.04 % 0.87 NIKKEI 20120.72 0.12 % 24.42 MSCI ASIA EX-JP 481.42 0.6 % 2.89 EUR/USD 1.1288 0.04 % 0.0005 USD/JPY 123.05 -1.02 % -1.2700 10-YR US TSY YLD 2.449 -- 0.03 10-YR BUND YLD 0.954 -- 0.00 SPOT GOLD $1,179.85 0.31 % $3.65 US CRUDE $60.94 1.33 % 0.80 > Asia shares wallow near 3-mth lows on Fed anxiety, Greece > Wall St ends flat; S&P 500 snaps 3-day losing streak > Nikkei bounces slightly, but sentiment fragile as Fed worries weigh > Longer-dated U.S. yields hit 7-month highs on supply > Dollar index slips as investors eye Greece's talks with lenders > Gold steadies on softer dollar, but fund outflows continue > LME copper edges up on weaker dollar in subdued trade > Oil prices rise on U.S. stock draw, improved world demand outlook (Reporting by Atul Prakash; Editing by Sudip Kar-Gupta)
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