European Factors to Watch-Shares seen edging lower

miércoles 10 de junio de 2015 02:36 GYT
 

(Adds company news, updates futures prices)
    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
. 
    
    WEIR GROUP 
    The company said the second quarter is proving to be very challenging for
oil & gas division. However, minerals, group's largest division, continued to
demonstrate resilience in subdued markets. 
     
    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. 
    
    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. 
   
    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. 
    
    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       
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  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