Europe Factors to Watch-Shares set to dip; all eyes on ECB

miércoles 4 de junio de 2014 02:32 GYT
 

PARIS, June 4 (Reuters) - European stocks were set to edge lower on
Wednesday as investors moved to the sidelines ahead of key macro data for the
euro zone as well as expected measures from the European Central Bank to support
the region's economic recovery.
    At 0621 GMT, futures for Euro STOXX 50, Germany's DAX and
France's CAC were down 0.2 percent, while UK's FTSE 100 futures
were up 0.1 percent.
    Investors awaited an updated figure for the euro zone's first-quarter GDP,
as well as service PMIs, which could shed light on the European Central Bank's
next move.
    At its meeting on Thursday, the ECB is widely expected to trim its
refinancing rate, send its deposit rate into negative territory and launch a
long-term refinancing operation (LTRO) targeted at businesses. 
    Despite recent economic data pointing to a slower-than-expected recovery for
the euro zone, European stocks have been supported by the prospect of fresh
intervention from the ECB, with Germany's DAX hitting a record high
earlier this week.
    Euro zone peripheral markets have also been rallying on hopes of further
measures from the central bank, with Milan's FTSE MIB index up 14.2
percent year-to-date and Madrid's IBEX up 8.7 percent.
    "The risk is that we get a 'buy the rumour, sell the news' move on the
market ... European stocks' hefty valuation levels should prompt fund managers
to book profits," Banque Leonardo strategist Francois Chevallier wrote in a
note.
    Tesco shares will be in focus after Britain's biggest retailer
posted the worst quarterly drop in underlying sales in its key home market since
Chief Executive Phil Clarke took the helm in 2011, raising further questions
over his trading strategy.
    The telecom sector will be in the spotlight after sources said Hutchison
Whampoa has resumed talks with Russian telecoms group Vimpelcom
 over merging their Italian mobile firms. 
    
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
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  MARKET SNAPSHOT AT 0624 GMT: 
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,924.24  -0.04 %    -0.73
 NIKKEI                              15067.96   0.22 %    33.71
 MSCI ASIA EX-JP                       487.74  -0.46 %    -2.26
 EUR/USD                               1.3608  -0.14 %  -0.0019
 USD/JPY                               102.72   0.23 %   0.2400
 10-YR US TSY YLD                       2.584       --    -0.01
 10-YR BUND YLD                         1.412       --     0.00
 SPOT GOLD                          $1,245.30   0.09 %    $1.10
 US CRUDE                             $102.82   0.16 %     0.16
 
  > GLOBAL MARKETS-ASIAN SHARES DIP, U.S. YIELDS BOLSTER DOLLAR 
  > US STOCKS-WALL ST ENDS A BIT LOWER A DAY AFTER DOW, S&P SET RECORDS 
  > NIKKEI EDGES UP IN CHOPPY TRADE BEFORE ECB, U.S. DATA THIS WEEK 
  > FOREX-EURO EASES BUT HOLDS ABOVE 4-MONTH LOW, FOCUS ON ECB 
  > PRECIOUS-GOLD HOLDS NEAR 4-MONTH LOW AS INVESTORS AWAIT U.S. DATA 
  > METALS-COPPER SLIPS TO 2-WK LOW, BUT CHINA PROSPECTS SUPPORT 
  > BRENT HOLDS NEAR $109 AHEAD OF STOCK DATA, ECB DECISION 
    
    COMPANY NEWS:
    TESCO 
    Britain's biggest retailer posted the worst quarterly drop in underlying
sales in its key home market since Chief Executive Phil Clarke took the helm in
2011, raising further questions over his trading strategy. 
    
    REPSOL 
    Mexico's national oil company Pemex will sell a 7.86 percent stake
in Spanish oil firm Repsol, worth about 2.2 billion euros ($3.0 billion),
Citigroup and Deutsche Bank said on Tuesday. The sale via an accelerated book
build is expected to close on Wednesday. 
    
    DEUTSCHE BANK 
    Deutsche Bank will price an 8 billion euro ($10.90 billion)capital increase
on Wednesday, likely at a big discount, to fortify its balance sheet ahead of
regulatory checks and to complete a costly restructuring. 
    
    SIEMENS 
    The German Finance Ministry said on Tuesday it was not aware of any plans
for the government to take a stake in Alstom as part of a possible
deal between the French industrial group and its German rival Siemens.
 
    
    CAIXABANK 
    CaixaBank is in advanced negotiations with General Atlantic and Warburg
Pincus to sell a 15-25 percent stake in its credit cards unit for 500 million
euros, Expansion reported, citing unnamed sourced with knowledge of the deal.
 
    
    VOLKSWAGEN 
    Volkswagen aims to raise up to 2 billion euros by issuing new preference
shares to fund its complete takeover of truck maker Scania. The
company will likely issue the new preference shares at 191 euros ($260) apiece,
a person familiar with the matter said. 
        
    AIRBUS GROUP 
    The planemaker said its new A350 aircraft successfully completed two "early
long flights" with passengers operated with Air France and Lufthansa cabin crews
on June 2 and June 3 in a further step towards the plane's entry into service.
 
    
    LAFARGE 
    The French cement maker will combine its South Africa business with publicly
traded Nigerian unit Lafarge Wapco, listing its Africa interests
together on the Lagos bourse, its country chief executive officer said.
 
    
    UBISOFT 
    The games maker announced "ongoing record sales" for its Watch Dogs game,
which has sold more than 4 million copies in its first week, making it the
company's best-selling game ever in week one. 

 (Reporting by Blaise Robinson; Editing by Atul Prakash)