European Factors to Watch-Shares seen steady, sentiment subdued
LONDON, May 16 (Reuters) - Major European equity indexes were seen edging higher at the open on Friday, finding some technical support after they posted the biggest daily drop in several weeks on the previous day. German travel and tourism group TUI AG was in focus after it reported a smaller-than-expected quarterly loss and said it was on track to meet its targets for the next two years. Appetite for shares remained subdued, however, with a drop in U.S. Treasury yields overnight and a rise in the price of insuring against further jitters on the stock market - as measured by the U.S. VIX and the euro zone VSTOXX volatility indexes - pointing to greater caution among investors. At 0627 GMT, futures for the Euro STOXX 50, Britain's FTSE 100 , Germany's DAX and France's CAC were up between 0.3 percent and 0.4 percent. Despite Thursday's drop, the FTSE, DAX, CAC and Euro STOXX 50 remain well above their 50-day moving average, a key momentum indicator. The FTSE and the DAX were still on track to record a gain for the week, while the CAC was set to post its first weekly loss in a month. "Yesterday's price action has sent a first sign of weakness but the Euro STOXX 50 cash index remains supported by an internal trend line drawn from May 2013 and by the rising 50-day simple moving average," said Nicolas Suiffet, an analyst at Paris-based technical analysis firm Trading Central. "Thus, the trend remains positive as long as prices are holding above the support base at 2970, which corresponds to its March bottom and internal trend line." France's CAC recorded its steepest daily fall since late March on Thursday and Italy's FTSE MIB fell by the most since February 2013 after weaker-than-expected GDP figures from the both countries. "Markets are vulnerable because growth expectations are a little bit too high," said Michael Hewson, chief market analyst at CMC Markets UK. "The gains we've seen in the periphery pretty much price in a recovery there so any disappointing numbers would cause weakness in those indexes." Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0626 GMT LAST PCT CHG NET CHG S&P 500 1,870.85 -0.94 % -17.68 NIKKEI 14096.59 -1.41 % -201.62 MSCI ASIA EX-JP 486.41 0.09 % 0.45 EUR/USD 1.3712 0.01 % 0.0002 USD/JPY 101.55 -0.01 % -0.0100 10-YR US TSY YLD 2.500 -- 0.00 10-YR BUND YLD 1.314 -- 0.01 SPOT GOLD $1,296.10 0.01 % $0.10 US CRUDE $101.85 0.34 % 0.35 > Stronger yen hits Japan shares, lower yields pressure dollar > Wall St falls for 2nd day; small caps slide again > Nikkei tumbles on strong yen; fall in US bond yields raise concerns > U.S. Treasury 10-yr yields tumble to lowest in six months > Euro inches away from lows, fall in U.S. yields hurts dollar > Gold below $1,300; platinum heads for best week in 3 months > Nickel faces 6 pct weekly loss but still up 35 pct this year > Brent holds above $109 on Ukraine tensions COMPANY NEWS CREDIT SUISSE Credit Suisse Group AG is expected to plead guilty and pay more than $2.5 billion to U.S. authorities to resolve charges that the Swiss bank helped Americans evade U.S. taxes, people familiar with the discussions said on Thursday. For more, click on ROYAL BANK OF SCOTLAND Hundreds more investors have jumped aboard an unprecedented group action against RBS, alleging they were misled during a record rescue cash call in 2008, and are claiming damages of roughly 4 billion pounds ($6.7 billion). SAP The software company is planning to cut between 1,500 and 2,500 jobs as software programmes switch to the cloud, meaning fewer onsite staff are required, a person with knowledge of the matter told Reuters. Separately, the group's incoming chief financial officer Luka Mucic told weekly Euro am Sonntag that in the long term, cloud computing would carry the same profit margins as SAP's conventional software business. Future takeover deals would likely be bolt-on, he added. VOLKSWAGEN The carmaker's buyout offer for minority shareholders in truckmaker Scania ends at 1500 GMT. VW said on May 13 it had 90.5 pct of Scania, enough to force out the remaining owners. (Reporting By Francesco Canepa; Editing by Anand Basu and Lionel Laurent)
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