European Factors to Watch -Shares set to ease off post-election highs
EDINBURGH, May 27 (Reuters) - European stocks are expected to dip on Tuesday, pulling back from multi-year highs hit in the previous session after solid election showings for governing parties in Germany and Italy. But UK stocks were poised to gain following a public holiday on Monday when they missed out on the strong rise in European equities. On Monday, Germany's DAX hit a record high and the euro zone Euro STOXX 50 hit a new 5-1/2 year peak as showings by pro-European forces in Germany and Italy provided an antidote to Eurosceptic gains in France, the UK and Greece. Italy's FTSE MIB was set to pull back 0.4 percent, according to spreadbetter IG, after climbing 3.6 percent in the previous session. "The MIB rallied quite significantly led by the banks and it is likely to be the weakest performer at the open as it gives back some of these gains," Stan Shamu, market strategist at IG, said in a note. At 0624 GMT, futures for the Euro STOXX 50, Germany's DAX and France's CAC were 0.1 to 0.2 percent lower, but futures for Britain's FTSE 100 were up 0.5 percent. Market focus may shift to mergers and acquisitions (M&A) news, as sources at Siemens told Reuters it is readying a formal offer for Alstom just hours after U.S. pharmaceutical Pfizer formally ended its pursuit of the UK's AstraZeneca. Accor, Europe's largest hotel group, could also be in focus after it said on Tuesday it had agreed to buy the assets of 97 hotels in Europe it had been operating under variable-leases for about 900 million euros, in a move the company said would boost earnings. 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 1,900.53 0.42 % 8.04 NIKKEI 14636.52 0.23 % 34 MSCI ASIA EX-JP 487.15 -0.21 % -1.01 EUR/USD 1.3651 0.04 % 0.0006 USD/JPY 101.89 -0.05 % -0.0500 10-YR US TSY YLD 2.543 -- 0.01 10-YR BUND YLD 1.422 -- 0.01 SPOT GOLD $1,286.81 -0.46 % -$5.93 US CRUDE $104.43 0.08 % 0.08 > GLOBAL MARKETS-Asian shares waver, ECB talk weighs on euro > Nikkei hits 7-week high, strong global data supports > FOREX-Euro drifts off low but U.S. holiday saps momentum > PRECIOUS-Gold steady as U.S. data eyed; platinum rises > METALS-London copper hits near 3-mth high on China buying > Brent rises toward $111 on worries over Ukraine, Libya ALSTOM, SIEMENS Siemens is readying a formal offer for Alstom under which it would transfer its rail activities and less than 7 billion euros in cash to its French rival in exchange for its power assets, sources familiar with the German firm's thinking say. Top executives from Siemens and from rival bidder General Electric are due to be interviwed by a parliamentary committee later on Tuesday. ACCOR Europe's largest hotel group said on Tuesday it had agreed to buy the assets of 97 hotels in Europe it was operating under variable-leases for about 900 million euros. GEMALTO Moldova selected Gemalto for its new electronic passport programme UBS UBS named Gary Head as its new global chief of cash equities, promoting the Australia-based banker and triggering a reshuffle of the Swiss bank's management in that country, according to a series of internal memos obtained by Reuters on Tuesday. For more, click on FCC The Spanish construction and services group has presented a non-binding offer for the state waste management company in Portugal Empresa Geral do Fomento (EGF), valued at 250 million euros, reported financial daily Expansion on Tuesday, citing sources close to the company. BANCO POPULAR The Spanish bank could team up with shareholder Credit Mutuel to help it make offers to buy the Spanish business of Citibank and CatalunyaCaixa, financial daily El Economista reported on Tuesday, citing sources with knowledge of the processes. CLUB MED Funds led by Italian businessman Andrea Bonomi could make a counterbid for Club Mediterranee, saying on Monday they would first need access to the French holiday group's books before making a decision. (Reporting by Alistair Smout; Editing by Tricia Wright)
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