Europe Factors to Watch-Stocks set to rise; earnings in focus
PARIS, April 29 (Reuters) - European stocks were set to rise on Tuesday, adding to the previous session's gains, as investors were combing through the quarterly results of a number of blue-chips including drug maker Sanofi , chip maker Infineon and lender Deutsche Bank. Shares in the German bank will be in focus after it posted a 30 percent drop in pretax profit in the first quarter, hit by a slump in bond trading revenue. The bank's earnings tumble signals a weak start to 2014 in what is traditionally a strong quarter, however the drop was not as big as analysts had expected. Overall, the pretax contribution from the investment banking division fell by more than a fifth, which could fuel worries over the results of other European investment banks. Revenue declines in trading, especially in bonds, have dogged investment banking results at peers such Barclays, JPMorgan and Citigroup. At 0626 GMT, futures for the Euro STOXX 50, UK's FTSE 100, Germany's DAX and France's CAC were up 0.3 to 0.7 percent. Boosting investor sentiment on Tuesday, data showed German consumer morale remained at its highest level in more than seven years heading into May. Investors were digesting quarterly results from a flurry of blue-chip companies including Swiss engineering group ABB, which posted an unexpected fall in first-quarter profit, and French luxury goods maker Hermes , which reported a forecast-beating 14.7 percent rise in like-for-like first-quarter sales. On the tech sector, German chipmaker Infineon said on Tuesday it now expect sales and margins to reach at least the upper end of its target range for this year on robust demand from its customers in automotive and industrial markets. "We haven't had any nasty surprises in earnings so far, which is good news for the market, although we're still far from a genuine rebound in profits that everyone is hoping for this year," a Paris-based trader said. "The market should stay range-bound until we have a real positive catalyst to resume the rally." Europe's earnings season has been mixed so far. About 22 percent of companies listed on the STOXX Europe 600 index have reported quarterly results, of which 55 percent have beaten or met analysts' expectations, with profits down 3.3 percent on average. In comparison, some 75 percent of U.S. companies have beaten or met forecasts this earnings season. Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0629 GMT: LAST PCT CHG NET CHG S&P 500 1,869.43 0.32 % 6.03 MSCI ASIA EX-JP 474.56 -0.30 -1.43 EUR/USD 1.3867 0.13 % 0.0018 USD/JPY 102.53 0.05 % 0.0500 10-YR US TSY YLD 2.706 -- 0.03 10-YR BUND YLD 1.512 -- 0.01 SPOT GOLD $1,293.90 -0.13 % -$1.70 US CRUDE $100.99 0.15 % 0.15 > GLOBAL MARKETS-Asia shares hesitant before key events > S&P 500, Dow end up after late rebound; Apple, Pfizer lift > Euro resilient ahead of inflation test, M&A supports sterling > Gold below $1,300, strong US data offsets Ukraine tensions > Copper underpinned on China shortfall; traders eye holidays > Brent holds above $108; Libya, U.S. inventories eyed COMPANY NEWS: DEUTSCHE BANK Deutsche Bank's pretax profit fell by 30 percent in the first quarter to 1.68 billion euros ($2.33 billion), the bank said on Tuesday, depressed by an industry-wide slump in bond trading revenue. SANOFI The French drugmaker reported lower-than-expected first-quarter earnings on Tuesday, weighed down by a delay in supply of paediatric vaccines in emerging markets and generic competition in animal health. SANTANDER The euro zone's biggest bank, on Tuesday said it had launched an offer to buy out 25 percent of its Brazilian unit it does not already own. The lender also said net profit rose 8 percent in the first quarter of 2014 to 1.3 billion euros, slightly below a 1.36-billion-euro forecast in a Reuters poll. INFINEON The German chipmaker said on Tuesday it now expect sales and margins to reach at least the upper end of its target range for this year on robust demand from its customers in automotive and industrial markets. HERMES The French luxury goods maker on Tuesday posted a forecast-beating 14.7 percent rise in like-for-like first-quarter sales, driven by strong demand for its fashion and leather goods. ENI The Italian oil and gas group said on Tuesday its net profit in the first quarter fell 14.3 percent on the year due to a weaker oil price and stronger dollar. NORDEA The Nordic region's biggest bank reported first-quarter earnings in line with expectations and said it expected to finalise plans for its accelerated cost savings programme during the second quarter. TOMTOM The Dutch navigation equipment maker on Tuesday increased its outlook for 2014, boosted by stronger-than-expected results in the first quarter and a one-off tax settlement. STATOIL The Norwegian oil and gas group reported an adjusted first-quarter operating profit above expectations and offered a dividend payment for the quarter of 1.80 crowns per share. ORANGE France's biggest telecom operator continued cutting costs on everything from staff to mobile phone marketing, allowing it to hold profit margins steady despite lower sales across its major markets. CAPGEMINI French technology consultancy stuck to its full-year organic sales growth and operating margin targets on Tuesday as it posted a 2.3 percent rise in first-quarter sales at constant exchange rates. (Reporting by Blaise Robinson; Editing by Atul Prakash)
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