European Factors to Watch-Shares seen lower after weak China data

viernes 24 de julio de 2015 02:30 GYT

LONDON, July 24 (Reuters) - European stocks were seen falling on Friday,
tracking declines in Asian and U.S. stocks as disappointing data from China and
weak earnings reports on Wall Street raised investor concern about the strength
of global growth.
    Commodity-related stocks were set to be in focus after a preliminary private
survey showed that China, the world's world's biggest consumer of metals, saw
its factory sector contract by the most in 15 months in July. The reading was
worse-than-expected, as shrinking orders depressed output.   
    "The talk among traders once again has been around moves in commodities and
what that is saying about global growth," Chris Weston, market analyst at IG,
said in a note. "Copper is painting a fairly bleak picture... (and the China
data) will only add to the concerns."
    Copper hit a six-year low after the data, while gold hit a 5-1/2
year low after strong U.S. jobs data, suggesting a U.S. Federal Reserve rate
rise may be on the cards sooner rather than later. 
    Despite the strong U.S. data, stocks on Wall Street were lower following a
spate of weak earnings reports from the likes of American Express and
Caterpillar, with recent dollar strength and a sluggish global economy
souring the outlook for corporate profits. 
    Futures on the Euro STOXX 50, Germany's DAX, France's CAC
 and Britain's FTSE were 0.1-0.4 percent lower at 0629 GMT.
    European equities slipped to a one-week low on Thursday, hit by
disappointing updates from Aberdeen Asset Management and British energy
supplier SSE. 
    In a busy day for corporate updates on Friday,  BASF, the world's
largest chemicals firm by sales, slightly missed expectations with a 2 percent
rise in operating profit, with profits of French food group Danone 
also falling short of expectations  
    British mobile firm Vodafone reported an acceleration in its main
quarterly sales growth as a cable TV acquisition in its biggest market Germany
lifted revenue. 
    Indicated 1.1 percent lower
    BASF posted a 2 percent higher operating profit for the second quarter as
demand for specialty plastics for the automotive and construction industry
outweighed lower oil and gas earnings. 
    The French voucher and prepaid card provider said it expected higher
full-year operating profit despite a more challenging economic climate in its
key market of Brazil as growth in its European business would further
    The yoghurt maker is pulling the plug on efforts to revive its flagship
Dumex infant formula unit in China on its own, swapping a business ravaged by
food scares for a bigger stake in a domestic dairy giant as competition heats up
in the world's biggest market for formula milk. 
    The French defence group said its first-half operating profit rose by a
wider-than-expected 18 percent to 473 million euros, buoyed in part by a tighter
grip on costs in its defence and security business. 
    Vodafone reported an acceleration in its main quarterly sales growth on
Friday as a cable TV acquisition in its biggest market Germany lifted sales and
consolidated the overall return to growth for the British firm. 
    The carmaker is planning to create space for 15,000 additional jobs on the
company's premises in Munich, Markus Baumgartner, head of project "FIZ Future"
at BMW told German business daily Handelsblatt.
    Germany's second-largest utility said it placed a $500 million hybrid bond.
    The world's first malaria vaccine got a green light on Friday from European
drugs regulators who recommended it should be licensed for use in babies in
Africa at risk of the mosquito-borne disease.
    The shot, developed by British drugmaker GlaxoSmithKline in partnership with
the PATH Malaria Vaccine Initiative, would be the first licensed human vaccine
against a parasitic disease and could help prevent millions of cases of malaria
in countries that use it. 
    The platinum producer is set to cut more than 5,000 jobs as a result of a
slump in platinum prices, Sky News reported on Thursday. 
    The U.S. Securities and Exchange Commission is investigating if liquor
company Diageo has been shipping excess inventory to distributors to boost its
results, the Wall Street Journal reported, citing people familiar with the
    The company said it sold a U.S. wind park project to NorthWestern Energy for
$143 million. 
    The French broadcaster said its second-quarter operating profit rose almost
fourfold as a reduction in programme costs helped offset broadly flat
advertising revenue. 
    ANGLO AMERICAN - The global mining company said it would maintain
its interim dividend on Friday as it posted a steep fall in first-half profit
hurt by a rout in metal prices. 
    PEARSON - Pearson, the British group selling the Financial Times in
a $1.3 billion deal, increased its dividend and confirmed guidance on Friday
after first-half operating profit dipped, partly on the timing of textbook
adoption in the United States. 
    Italy's biggest retail bank is looking to sell its Accedo consumer credit
unit by the end of 2015 as part of a multi-year plan to shed non-core assets,
two sources close to the matter said on Thursday. 
    Generali's investment in Spain's Banco Credito Cooperativo could pave the
way to a stock market listing valuing the Spanish bank at around 1 billion
euros, a source close to the matter said. 
    Eni is said to be weighing the sale of Nigeria assets that could be worth
$2-5 billion, though no decision has as yet been taken, Bloomberg said on
Thursday citing sources. 
    The Franco-Italian chipmaker's shares rose on Thursday after it said it
expected modest growth in communications, industrial and automotive markets in
H2 2015, reassuring investors spooked by recent warnings from U.S. chipmakers
Texas Instruments Inc and Linear Technology Corp. 
    Fitch assigned a long-term 'BBB+' rating to Snam on Thursday, with a stable
    The regional utility said on Thursday it had received a 15-year 200 million
euro loan from European Investment Bank to fund power and gas network
investments and public lighting. 
    The French homebuilder raised its 2015 financial targets in light of a
recovering new house market as it posted stronger-than-expected revenue.
    The maker of Rafale warplanes and Falcon business jets posted a 34 percent
increase in first-half operating income to 144 million euros. 
    The French drug company said its masitinib multiple sclerosis treatment had
passed a non-futility test and an independent safety committee had recommended
phase 3 study to be continued. 
    Sika said sales rose year on year by 5.6 percent at constant exchange rates
to 2.625 billion Swiss francs. In line with Strategy 2018, Sika expects sales
growth of 6-8 percent at constant exchange rates, but said the unknown outcome
of Saint-Gobain's hostile takeover bid means this forecast is
    Euskaltel said late on Thursday it had agreed an offer for fellow cable
company R Cable, giving it an enterprise value of 1.2 billion euros in the
latest wave of consolidation in the Spanish telecommunications market.
    Spanish energy company Abengoa said on Thursday it would act to prevent
speculative trading on its debt and reducing the cost of the debt was a priority
after a day of losses for its bonds, credit default swaps and stock.
    0700    FR    Markit PMI
    0730    DE    Markit PMI
    0800    EZ    Markit PMI
    0800    IT    Wage Inflation
    1345    US    Markit PMI
    1400    US    New Home sales
    1430    US    ECRI
                                         LAST   PCT CHG  NET CHG
 S&P 500                             2,102.15   -0.57 %      -12
 NIKKEI                              20557.14   -0.61 %  -126.81
 MSCI ASIA EX-JP                       455.16   -0.83 %    -3.83
 EUR/USD                                1.097    -0.1 %  -0.0011
 USD/JPY                               123.89       0 %   0.0000
 10-YR US TSY YLD                       2.270        --    -0.01
 10-YR BUND YLD                         0.744        --     0.00
 SPOT GOLD                          $1,083.40   -0.64 %   -$7.00
 US CRUDE                              $48.67    0.45 %     0.22
  > Asian shares tumble as weak China PMI revives demand concerns    
  > US STOCKS-Wall St falls for 3rd day as earnings fall short        
  > Nikkei falls on weaker U.S. shares                        
  > TREASURIES-Long yields fall to 2-week low on poor U.S. earnings    
  > FOREX-Euro buoyant, Aussie hits 6-year low                    
  > PRECIOUS-Gold sags to 5-1/2-year low, heads for worst week since Oct   
  > METALS-London copper hits six-year low after Chinese factory survey    
  > Oil prices climb, but stay in bear market territory            

 (Reporting by Alistair Smout)