European Factors to Watch-Shares to rebound but set for weekly drop
(Adds details, futures) EDINBURGH, June 27 (Reuters) - European stocks were set to open slightly higher on Friday, rebounding from recent falls but still set for their biggest weekly drop since April to pull back from multi-year highs, hindered by talk of rate rises in the United States amid global growth concerns. The pan-European FTSEurofirst 300 is down 1.7 percent for the week, and looks set to snap a 10-week winning streak, which had been its longest since the middle of 2012. The index closed down 0.1 percent at 1,370.38 on Thursday, retreating further from a 6-1/2 year high hit last week after U.S. Federal Reserve official James Bullard suggested the U.S. economy would be strong enough to bear a rate rise in early 2015. The comments came despite weak U.S. consumer spending data, which prompted a cut in growth forecasts and hit global stocks. "Bullard's statement (has) illustrated the high dependency of the stock markets on further low interest rates," Roger Peeters, head of research at Close Brothers Seydler, said in a note. At 0630 GMT, futures for the Euro STOXX 50, Britain's FTSE 100 , Germany's DAX and France's CAC were up 0.3-0.4 percent. Even as the Federal Reserve publically discusses monetary tightening, European shares are set to be underpinned throughout the second half of 2014 by stimulus from the European Central Bank. A Reuters poll of over 60 fund managers and strategists taken in the past week predicted the pan-European STOXX Europe 600 index would climb 5 percent to 360 points by the end of 2014 - a seven-year high - led up by periphery markets that should benefit the most from attempts to stave off inflation. The financial sector may be in focus on Friday, with big banks starting to pull business out of Barclays' dark pool after the British bank was sued by New York's top securities regulator for allegedly misleading investors over its anonymous trading venue, the Financial Times reported. "While we expect some revenues will now be lost, as clients instruct brokers to pull direct flow away, there should be limited impact on the rest of the equities business, in our view," analysts at Citi said in a note, pointing out that the revenue contribution from Barclays' dark pools business was "negligible". Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0630 GMT: LAST PCT CHG NET CHG S&P 500 1,957.22 -0.12 % -2.31 NIKKEI 15095 -1.39 % -213.49 MSCI ASIA EX-JP 492.27 -0.06 % -0.28 EUR/USD 1.3624 0.1 % 0.0013 USD/JPY 101.38 -0.34 % -0.3500 10-YR US TSY YLD 2.518 -- -0.01 10-YR BUND YLD 1.246 -- 0.00 SPOT GOLD $1,320.30 0.2 % $2.70 US CRUDE $105.59 -0.24 % -0.25 > GLOBAL MARKETS-Shares, bond yields down on growth concerns > US STOCKS-Wall St dips after Fed's Bullard talks about rates > Nikkei falls on U.S. growth concerns; exporters weak > TREASURIES-Long yields hit three-week lows on soft U.S. data > FOREX-New Zealand dollar shines in subdued currency market > PRECIOUS-Gold treads water; Chinese physical demand weighs > METALS-London copper slips; set for 2nd weekly gain > Brent heads for biggest weekly drop since March COMPANY NEWS AIRBUS Airbus is very close to a decision to upgrade its A330 with Rolls-Royce as sole engine supplier, setting the stage for a bitter new phase in a battle for orders with Boeing's 787 Dreamliner, people familiar with the matter said. General Electric - the main alternative engine supplier on the existing version of the jet - is no longer seen as a contender to take part in the $2 billion "A330neo" project, they said. NATIXIS, COFACE French investment bank Natixis said it raised 832 million euros from the sale of 51 percent in Coface in the credit insurer's initial public offering. Coface set its IPO price at 10.4 euros a share, in the middle of the 9.6-11.2 euro range. The shares are due to start trading at 0700 GMT. ADIDAS U.S. rival Nike reported better-than-expected quarterly results, as demand for its apparel and footwear rose in North America and Western Europe after the company spent heavily on marketing ahead of the 2014 soccer World Cup. Related news BASF Rival chemicals maker DuPont cut its operating profit forecast for the second quarter and the full year, saying sales in its agriculture and performance chemicals units increased at a slower pace than it had expected. Related news NOVARTIS The U.S. Food and Drug Administration said on Thursday it has approved Ranbaxy Laboratories Ltd's generic version of Novartis AG's blood pressure drug Diovan. For more, click on: ROCHE Roche said on Friday that European regulators had recommended approval of its drug Avastin as a treatment for women with ovarian cancer that is resistant to platinum-containing chemotherapy. For more, click on: BARCLAYS, CREDIT SUISSE Big banks have started pulling their business out of Barclays' dark pool, after the British bank was sued by New York's top securities regulator for allegedly misleading institutional investors over its anonymous trading venue, The Financial times reported. Credit Suisse, Deutsche Bank, and Royal Bank of Canada, asset manager Alliance Bernstein were among the institutions that withdrew from Barclays' dark pool on Thursday, the paper said. For more, click on: (Reporting by Alistair Smout; Editing by Gopakumar Warrier, Sunil Nair and Sudip Kar-Gupta)
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