European Factors to Watch-Shares to pause, set for 10th weekly gain

viernes 20 de junio de 2014 02:38 GYT
 

LONDON, June 20 (Reuters) - European stocks were seen pausing near 6-1/2
year highs on Friday, keeping a key regional index on track for a tenth
consecutive weekly gain, its longest streak in nearly two years.
    At 0634 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were flat to down 0.1
percent, succumbing to some profit taking after strong gains on the previous
day.
    The pan-European FTSEurofirst 300 hit a fresh 6-1/2 year high on
Thursday after the Federal Reserve signalled it would keep an ultra-easy
monetary policy for longer than the market had expected.
    The index was on track for its tenth consecutive weekly gain, extending its
longest winning run since August 2012. 
    Bullish equity markets have fuelled a wave of mergers and acquisitions deals
and new market listings in recent months.
    Siemens and Mitsubishi Heavy Industries (MHI) raised
their offer for Alstom's energy businesses to compete with a revised
bid by U.S. rival General Electric. 
    U.S. drugmaker AbbVie Inc confirmed on Friday it had made a bid
approach to Shire, which was rejected by the British group's board. It
said talks were no longer ongoing. 
    Shares in market operator Euronext will make their debut on Friday.
They will be priced at 20 euros each - at the lower end of a previously
announced price range of 19-25 euros a share. 
    Some share price volatility may be on the cards on Friday as monthly and
quarterly futures and options on European stocks expire, resulting in increased
activity from market makers.     
    
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
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  MARKET SNAPSHOT AT 0633 GMT:     
    
                                             LAST         PCT CHG        NET CHG
 S&P 500                                 1,959.48          0.13 %            2.5
 NIKKEI                                  15349.42         -0.08 %         -11.74
 MSCI ASIA EX-JP                           488.69         -0.52 %          -2.57
 EUR/USD                                   1.3625          0.12 %         0.0017
 USD/JPY                                   101.87         -0.04 %        -0.0400
 10-YR US TSY YLD                           2.621              --           0.00
 10-YR BUND YLD                             1.333              --           0.01
 SPOT GOLD                              $1,311.70         -0.61 %         -$8.00
 US CRUDE                                 $106.57          0.13 %           0.14
 

  
  > WORLD STOCKS AT RECORD HIGH, GOLD HOLDS GAINS AS DOLLAR DIPS     
  > S&P 500 ENDS AT A RECORD AS FED OPTIMISM LINGERS                 
  > NIKKEI FLAT AFTER RALLY, LINGERING FED OPTIMISM SUPPORTS         
  > PRICES FALL ON WEAK TIPS AUCTION, REPOSITIONING AFTER FED        
  > UPBEAT DATA LIFTS DOLLAR OFF LOWS, STERLING NEAR 5-1/2-YEAR HIGH 
  > PRECIOUS-GOLD SET FOR BEST WEEK IN THREE MONTHS, NEAR APRIL HIGHS 
  > COPPER HITS 2-WEEK HIGH ON TIGHT SUPPLY, ZINC AT 16-MONTH TOP    
  > BRENT HOLDS NEAR $115, HEADS FOR 2ND WEEKLY GAIN ON IRAQ TURMOIL 
    
    COMPANY NEWS
    
    ALSTOM, BOUYGUES 
    Siemens confirmed that it and Misubishi Heavy Industries 
improved their offer for Alstom's energy businesses, raising the valuation by
400 million euros to 14.6 billion and increasing the cash element of the bid to
8.2 billion from 7 billion. 
    Alstom said its board of directors would meet not later than Monday to
"review and resolve upon" the updated offer from GE and the Siemens-MHI
proposal, adding that it would not communicate further on the process in the
meantime.
    French President Francois Hollande is due to hold meetings on Friday
afternoon with General Electric, Siemens and Mitsubishi Heavy Industries about
their proposals for Alstom.
    
    EDF 
    A planned reform of regulated French power tariffs will bring an element of
market prices into the calculation, removing a link with utility EDF's
production costs and making them less open to challenge by rivals, sources close
to the matter said. 
    
    GDF SUEZ 
    The French utility said U.S. regulators gave the green light for the Cameron
liquefied natural gas (LNG) project in the United States, paving the way for a
final investment decision by its sponsors. 
    GDF Suez and Santos have dropped plans for a multibillion dollar
floating LNG project off northern Australia, citing poor expected returns, and
said on Thursday they aim to consider alternatives swiftly. 
    
    EURONEXT 
    Shares of the stock market operator will be priced at 20 euros each - at the
lower end of a previously announced price range of 19-25 euros a share - when
they make their market debut on Friday, parent Intercontinental Exchange 
said. 
    
    FIAT 
    Fiat Chrysler plans to sell its treasury holding of about 3.5 percent in CNH
Industrial as well as its 2.5 percent holding in the sister company to U.S.
investors, the FT said, citing CEO Sergio Marchionne. 
    Several newspapers cited Marchionne as confirming the group would list on
Wall Street at the start of October, probably in the first two weeks.
    
    UBS 
    U.S. authorities are probing UBS AG for criminal fraud after a former broker
in Puerto Rico allegedly directed clients to improperly borrow money to buy
mutual funds that later plunged, according to lawyers representing some of the
investors. 
    A Belgian judge charged the head of UBS Belgium on Thursday with involvement
in an alleged multi-billion euro tax fraud by the Swiss bank's Belgian
unit. 
    
    TELENOR 
    Norway's centre-right government will ask the parliament for the right to
cut its stakes in Telenor ASA, a global telecoms company with 172 million
customers in Europe and Asia, to 34 percent from 54 percent, the trade minister
said on Thursday evening. A 20 percent stake in Telenor is worth around $7.1
billion at current prices. The government plans to publish a white paper on
state ownership on Friday, a first step in the political process to reduce the
stakes. 
    
    TELECOM ITALIA 
    Shareholder Telefonica on Monday sold a 103 million euro Telecom Italia
mandatory bond it subscribed last November, Ilo Sole 24 Ore said, citing market
rumours.

    
    NESTLE 
    Nestle is trimming its huge range of businesses and pushing deeper into
niche medical products to improve returns, but the food and beverage giant still
likes its heft. 
    
    MEDIOBANCA 
    The current CEO of Mediobanca Alberto Nagel and its Chairman Renato Pagliaro
are set to be re-appointed for another three-year mandate, a source close to the
Italian investment bank's shareholders said on Thursday. 
    
    

 (Reporting By Francesco Canepa, editing by Tricia Wright)