Europe Factors to Watch-Shares seen steady ahead of ECB

jueves 5 de junio de 2014 02:21 GYT
 

PARIS, June 5 (Reuters) - European stocks were seen steady on Thursday
morning ahead of the European Central Bank's meeting at which the bank is set to
unveil fresh measures to support the euro zone's frail recovery and prevent
deflation.
    The telecom sector will be in focus again after Sprint Corp agreed to
pay about $40 per share to buy T-Mobile US Inc, a unit of Deutsche
Telekom, according to a source, a premium to the carrier's Wednesday
close of about a 17 percent. Deutsche Telekom owns 67 percent of T-Mobile.
 
    Shares in metal and mining companies, which have a big exposure to China,
will be in the spotlight after data showed growth in the country's services
sector retreated to a four-month low in May. The services purchasing managers'
index (PMI) compiled by HSBC/Markit slipped to 50.7 last month from April's
51.4, although it still held above the 50-point level separating growth from
contraction. 
    At 0615 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were up 0.1 percent.
    At its meeting on Thursday, the ECB is expected to impose negative interest
rates on its overnight depositors, seeking to prompt banks to lend instead and
to prevent the region from slipping into Japan-like deflation, and launch a
long-term refinancing operation (LTRO) targeted at businesses. 
    "Expectations are for the ECB to let slip the dogs of dovish monetary policy
today with, at a minimum, a cut in the main interest rate," Capital Spreads
trader Jonathan Sudaria wrote in a note.
    "However, with so much already priced in and Draghi's history of talking the
talk but not walking the walk on firing off bazookas, another impotent outing
could see risks to the downside."
    Despite recent economic data pointing to a slower-than-expected recovery for
the euro zone Economy, 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 about 14
percent year-to-date and Madrid's IBEX up 9 percent.
    
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
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  MARKET SNAPSHOT AT 0617 GMT:
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,927.88   0.19 %     3.64
 NIKKEI                              15079.37   0.08 %    11.41
 MSCI ASIA EX-JP                       487.87  -0.01 %    -0.07
 EUR/USD                               1.3608   0.07 %   0.0010
 USD/JPY                               102.51  -0.21 %  -0.2200
 10-YR US TSY YLD                       2.590       --    -0.02
 10-YR BUND YLD                         1.427       --    -0.01
 SPOT GOLD                          $1,243.46   0.05 %    $0.66
 US CRUDE                             $102.39  -0.24 %    -0.25
   
  > GLOBAL MARKETS-CHINA DATA DISAPPOINTS; ALL EYES ON ECB 
  > US STOCKS-S&P ENDS AT NEW RECORD ON STRONG SERVICES SECTOR GROWTH DATA 
  > NIKKEI CHOPPY, MARKET AWAITS ECB, U.S. JOBS DATA; SAPPORO DIVES 
  > FOREX-EURO NEAR FOUR-MONTH LOWS AS ECB LOOMS; YEN GETS RESPITE 
  > PRECIOUS-GOLD HOLDS NEAR 4-MONTH LOW AS ECB MOVE ON RATES AWAITED 
  > METALS-LONDON COPPER STEADY, GLOBAL GROWTH OUTLOOK SUPPORTS 
  > BRENT HITS 3-WEEK LOW OF $108 AS UKRAINE TENSIONS EASE 
    
    COMPANY NEWS:
    
    DEUTSCHE TELEKOM 
    Sprint Corp has agreed to pay about $40 per share to buy T-Mobile US
Inc, a unit of Deutsche Telekom, a person familiar with the matter told
Reuters on Wednesday, a premium to the carrier's Wednesday close of about a 17
percent. Deutsche Telekom owns 67 percent of T-Mobile. 
    
    EDF 
    The French utility aims to sell as early as the end of June a 70 percent
stake in Italian unit Edison's wind farms to local infrastructure fund F2i, two
sources with direct knowledge of the talks said. 
    
    ORANGE, BOUYGUES 
    The French telecoms firm has hired investment banks Lazard and Credit Suisse
to assess a potential purchase of rival Bouygues Telecom, a deal that could top
6 billion euros, two people close to the situation said. 
    
    DEUTSCHE BANK 
    Deutsche Bank's plans for an 8 billion euros ($10.9 billion) capital hike
came to an abrupt halt on Wednesday when a procedural bottleneck in a German
court forced the lender to delay the issue by several days. It had planned to
price the issue on Wednesday. 
    
    BANCA MONTE DEI PASCHI DI SIENA 
    Stock market watchdog Consob said in a statement that it had approved the
prospectus to Monte dei Paschi's planned 5-billion-euro capital increase. Consob
said the board of Monte dei Paschi would meet on Thursday to approve the price
of the share issue. 
    
    HENKEL 
    The consumer goods group agreed to buy French laundry products group
Spotless from buyout group BC Partners in a deal worth around 940 million euros,
it said on Thursday. 
    
    CASINO 
    Brazilian retailer Grupo Pao de Acucar said Wednesday its board,
along with other subsidiaries of the French retailer Casino, approved a plan to
merge their e-commerce units, which would have combined annual sales of $4.9
billion. 
    
    VINCI 
    Private equity group Ardian, Crédit Agricole Assurances and Vinci, the
concessions operating company, said they had finalised the creation of a company
that will own the car parking business Vinci Park. The finalisation took place
four months after the start of exclusive talks. 
    
    ENI 
    Italy's energy group Eni said on Wednesday it had agreed to help develop the
Perla gas field in Venezuela, one of the largest discoveries of the decade, and
committed to invest up to $500 million into the project. 
    
    

 (Reporting by Blaise Robinson, editing by Tricia Wright)