European Factors to Watch-Stocks to fall; Burberry in focus
EDINBURGH, May 21 (Reuters) - European stocks were set to fall on Wednesday, tracking losses in the United States and in Asia to lead major indexes further away from multi-year highs. At 0612 GMT, futures for the Euro STOXX 50, Britain's FTSE 100 , Germany's DAX and France's CAC were 0.1-0.3 percent lower. Wall Street set the tone for a weak session in Asia and Europe after disappointing results for heavy machinery firm Caterpillar and in the retail sector prompted a broad sell-off in U.S. stocks. "Europe should open on the back foot this morning, with futures markets finding little inspiration from the modest moves in Asia," Chris Weston, chief market strategist at IG, said in a note. The retail sector will also be in focus in Europe after luxury firm Burberry met forecasts with an 8 percent rise in annual profit, though it reiterated the risk of a material impact on profit if foreign exchange rates remain at current levels. Across the STOXX Europe 600, earnings season so far has been mediocre, with 51 percent of companies missing earnings estimates and nearly 60 percent missing analyst expectations for revenue, StarMine data showed. The pan-European FTSEurofirst 300 is down 0.3 percent so far this week, suffering from poor results from the likes of telecoms giant Vodafone . It has fallen 1.2 percent since hitting its highest level since May 2008 last Thursday. "In general terms the European remains rangebound and, although we are at the upper end, we continue to see the equity market in good shape for a move higher," Atif Latif, director of trading at Guardian Stockbrokers, said. Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0619 GMT: LAST PCT CHG NET CHG S&P 500 1,872.83 -0.65 % -12.25 NIKKEI 14042.17 -0.24 % -33.08 MSCI ASIA EX-JP 483.08 -0.08 % -0.4 EUR/USD 1.3706 0.03 % 0.0004 USD/JPY 101.18 -0.13 % -0.1300 10-YR US TSY YLD 2.512 -- 0.00 10-YR BUND YLD 1.346 -- -0.01 SPOT GOLD $1,294.10 0.02 % $0.30 US CRUDE $102.89 0.55 % 0.56 > GLOBAL MARKETS-Asia spooked by Wall Street loss, dollar dips > US STOCKS-Retail stocks lead selloff on Wall St after earnings > Nikkei falls as BOJ awaited; construction equipment makers hit > TREASURIES-U.S. bond prices rise on Dudley comments > FOREX-Wounded dollar eyes BOJ, Aussie slides to 2-week low > PRECIOUS-Gold steady; platinum gains on supply worries > METALS-Copper drifts as traders take profits on tepid demand > Brent climbs towards $110 on Libya violence, U.S. stock draw COMPANY NEWS AUTOMOTIVE INDUSTRY The German Association of the Automotive Industry (VDA) expects a surge in sales of electric cars in 2014. "This year, we will likely see more than 10,000 new registrations in electric cars in Germany for the first time," VDA president Matthias Wissmann told German daily "Stuttgarter Zeitung". Last year, about 6.000 cars were sold. Related news AIRBUS Ministers from France, Germany, Britain and Spain said they would work together with the European Commission to raise their concerns over tax breaks received by U.S. planemaker Boeing, which they said represent unfair subsidies. Related news BURBERRY British luxury brand Burberry met forecasts with an 8 percent rise in annual profit, though it reiterated that if foreign exchange rates remain at current levels there will be a material impact on 2014-15 profit. BNP PARIBAS U.S. authorities are seeking more than $5 billion from BNP Paribas to settle federal and state investigations into the French lender's dealings with sanctioned countries, Bloomberg reported, citing a person familiar with the matter. DEUTSCHE LUFTHANSA AG The airline is recovering from a pilot strike in April and views competition from state-owned carriers as one of its biggest challenges, its new chief executive told Reuters. Related news SIEMENS ALSTOM Germany's Siemens wrote to Alstom on Tuesday asking for more information ahead of a likely offer for the French company's power business, French Economy Minister Arnaud Montebourg said. Related news METRO AG The chairman of German retailer Metro defended Chief Executive Olaf Koch against criticism of his handling of a power struggle with the founder of the group's electronics chain Media-Saturn, speaking in an interview with the daily Sueddeutsche Zeitung Related news A.P. MOLLER-MAERSK Danish shipping and oil group A.P. Moller-Maersk reported a first-quarter net profit above forecast thanks to doubling of profit in container shipping business Maersk Line. For more on the company, click on NOVARTIS Novartis said a study showed its once-daily inhaled medicine Ultibro Breezhaler was non inferior to combination therapy in improving health-related quality of life outcomes in patients with moderate-to-severe chronic obstructive pulmonary disease (COPD). FIAT Italian carmaker Fiat FIA.MI plans to invest around 2.36 billion zlotys ($773 million) to upgrade its factories in southern Poland where it plans to start the production of a new model, the Polish government said on Tuesday. NOVO NORDISK Novo Nordisk, the world's biggest insulin maker, said late on Tuesday the U.S. Food and Drug Administration (FDA) had informed the company that an FDA Advisory Committee meeting was tentatively scheduled for Sept. 11 to discuss Novo's new drug application for liraglutide 3 mg for the treatment of obesity. Novo submitted the application in December 2013. For more on the company, click on (Reporting by Alistair Smout; Editing by Francesco Canepa and Anupama Dwivedi)
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