European Factors to Watch-Shares to pause after Greek deal rally
LONDON, July 14 (Reuters) - European stocks were set to pause on Tuesday after a strong four day rally, with investors unsure whether Greece would be able to get the support of its parliament behind a bailout deal designed to avert bankruptcy. Just hours after agreeing to an austerity package in return for agreeing to talks on an 86 billion euro bailout, doubts were already emerging about whether Tsipras would be able to hold his government together. The pan-European FTSEurofirst 300 index rose 1.9 percent to 1,572.05 points on Monday as markets welcomed the initial deal, rising for a fourth straight session. The euro zone's Euro STOXX 50 index hit a two-week high on Monday and has gained about 9 percent since last Tuesday's close. "European equities are set to start flat this morning as fears of a Grexit have receded for now. Markets had a solid rebound yesterday on the news that a conditional deal was on the table," Jonathan Sudaria, trader at London Capital Group, said in a note. "However, the need to pass even harsher measures through the Greek parliament could be another stumbling block and so we see markets treading water until we get some clarity. The remarkable turnaround from Alex Tsipras hasn't gone unnoticed at home with a public and political backlash mounting." Futures for the Euro STOXX 50, Germany's DAX, France's CAC and Britain's FTSE were flat to 0.2 percent lower ahead of the cash market open. Commodity related stocks were also set to be in focus, after an Iranian diplomat said on Tuesday that Iran and six major powers have reached a historic nuclear deal, which will grant Tehran sanctions relief in exchange for curbs on its nuclear programme. Oil prices have come under pressure on the prospect of such a deal which could see an easing of sanctions against Tehran and a gradual increase in its oil exports. COMPANY NEWS ENI, ENEL, ACEA, EDISON Italy's antitrust said on Monday it was investigating energy companies Acea, Eni, Enel and Edison after receiving numerous complaints about their invoicing methods. FIAT CHRYSLER AUTOMOBILES General Motors Co and the United Auto Workers on Monday kicked off bargaining that will determine labor costs for the U.S. operations of the Detroit Three, including Fiat Chrysler, with a show of harmony that extended to the blue, open-collar shirts worn by officials on each side. Healthcare packages and profit-sharing agreements could be revised in talks for new contracts between the UAW and the Big Three U.S. automakers, the Wall Street Journal reported, citing people familiar with the negotiations. SEB - The Swedish banking group reported second-quarter profits above expectations on Tuesday as customers' demand for hedging helped offset squeezed interest rate margins. ASTRAZENECA - The U.S. Food and Drug Administration approved AstraZeneca's drug, Iressa, as a first-line treatment for a common form of lung cancer. The drug was previously approved for use only in patients who did not respond to chemotherapy. GLAXOSMITHKLINE - GlaxoSmithKline said on Tuesday it had forged a collaboration with the Francis Crick Institute, making it the first pharmaceutical company to link up with the new biomedical centre based in London. LINDT & SPRUENGLI Swiss chocolate maker Lindt & Spruengli said first-half sales rose by nearly one quarter following the purchase of U.S. rival Russel Stover, missing expecations, as it backed its sales targets for the full year. For more, click on BANQUE SYZ Swiss bank Syz & Co said it will buy Royal Bank of Canada's Swiss private bank, including 10 billion Swiss francs under management, the latest exit for a foreign bank in Switzerland. For more, click on EVONIK Private Equity firm CVC Capital Partners has sold about 15 million shares in Evonik for 34.60 euros ($38.05)apiece, JP Morgan, which is one of the bookrunners, said on Monday. AEROPORTO BOLOGNA GUGLIELMO MARCONI Debuts on main segment Milan Stock Exchange. FCC Spanish builder FCC, whose top shareholder is Mexican billionaire Carlos Slim, said on Monday that it could accelerate the departure of CEO Juan Bejar if it finds a successor before Bejar is due to leave at the end of September. ABENGOA Abengoa and Starwood Energy win a 114 mile transmission line in the southwest of the United States PROSEGUR Spanish security company Prosegur is considering listing about 30 percent of its cash-in-transit unit through an initial public offering in Madrid, Bloomberg reported on Monday, citing unnamed sources with knowledge of the matter. HOLCIM Holcim said LafargeHolcim today starts trading on the SIX Swiss Exchange in Zurich following the successful completion of the merger between Holcim and Lafarge. KUEHNE & NAGEL Kuehne & Nagel said second-quarter net profit rose nearly 7 percent to 162 million Swiss francs ($170.51 million) despite a 5.6 percent drop in net turnover to 4.373 billion francs, and said it is confident for further business development. MAJOR MACROECONOMIC DATA/EVENTS (GMT) : 0600 DE CPI, HICP 0715 CH Producer/Import Price 0800 IT Consumer Prices, CPI 0830 GB CPI, RPI, PPI 0900 DE ZEW survey 0900 EZ Industrial production 1230 US Import/Export prices, Retail sales 1255 US Redbook 1400 US Business Inventories ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0524 GMT: LAST PCT CHG NET CHG S&P 500 2,099.60 1.11 % 22.98 NIKKEI 20337.46 1.23 % 247.69 MSCI ASIA EX-JP 460.79 0.02 % 0.09 EUR/USD 1.1 -0.02 % -0.0002 USD/JPY 123.29 -0.11 % -0.1300 10-YR US TSY YLD 2.432 -- 0.00 10-YR BUND YLD 0.850 -- 0.00 SPOT GOLD $1,155.20 -0.21 % -$2.40 US CRUDE $51.49 -1.36 % -0.71 > GLOBAL MARKETS-Asia shares up as Greek deal gets cautious nod > US STOCKS-Wall Street rallies on Greek deal; tech stocks jump > Nikkei climbs to 1-1/2-week high after Greece debt deal > TREASURIES-Yields rise on Greek deal, corporate bond sale weighs > FOREX-Dollar up with Greece off centre stage, safe-haven yen sags > PRECIOUS-Gold drops as focus shifts to looming U.S. rate hike > METALS-Copper holds steady after Greece deal, nickel sinks > Oil prices fall as Iran nuclear deal looks imminent (Reporting by Alistair Smout)
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