European Factors to Watch-Rebound stops as Software AG cuts f'cast
(Adds futures, quote, further company news) LONDON, July 15 (Reuters) - European stocks were seen snapping a two-day bounce on Tuesday, with a guidance cut at Germany's Software AG denting sentiment on the tech sector and traders awaiting German sentiment and British inflation data. At 0622 GMT, futures for the Euro STOXX 50, Britain's FTSE 100 , Germany's DAX and France's CAC were down between 0.2 percent and 0.3 percent. German business software maker Software AG cut its 2014 outlook for sales growth at its biggest business, citing significant delays to major projects in the second quarter. Traders were awaiting data due later in the session to assess the state of Europe's largest economy and the outlook for UK interest rates. Britain's Consumer Price Index, due at 0830 GMT, was expected to show inflation ticked up slightly in June after hitting a 4-1/2-year low in the prior month. Germany's ZEW sentiment index for July, due to be published at 0900 GMT, was seen falling for a seventh consecutive month. "Traders are taking a little breather before UK CPI and the German ZEW Surveys to see how sentiment pans out," Jonathan Sudaria, a dealer at Capital Spreads, said. Federal Reserve Chair Janet Yellen testifies on the central bank's semiannual monetary policy before the Senate Banking Committee at 1400 GMT. Analysts at Societe Generale expect Yellen to keep her recent, dovish tone of despite improvements in labour market conditions and housing activity. The Euro STOXX 50 rose 0.9 percent on Monday, extending a bounce started in the previous session and recouping some of the 3.5 percent drop in the previous week due to some soft economic data and concerns about Portugal's banking system. Some late selling over the past two sessions, however, suggested investors remained cautious and were happy to book any intra-day profit. "It means the resumption of the uptrend is not gonna be a V-bottom but is going to take a bit of time," said Philippe Delabarre, an analyst at Trading Central. "Most of the correction move is done and the bullish trend should resume thanks to an intermediary support at 3,135 (which supported the index between April 25 and May 19) and an ascending trend line drawn from December 2013." Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0513 GMT: LAST PCT CHG NET CHG S&P 500 1,977.10 0.48 % 9.53 NIKKEI 15395.16 0.64 % 98.34 MSCI ASIA EX-JP 499.45 0.15 % 0.76 EUR/USD 1.3608 -0.08 % -0.0011 USD/JPY 101.57 0.04 % 0.0400 10-YR US TSY YLD 2.536 -- -0.01 10-YR BUND YLD 1.208 -- 0.00 SPOT GOLD $1,308.70 0.14 % $1.86 US CRUDE $100.90 -0.01 % -0.01 > ASIAN SHARES GAIN, COUNT ON FED'S SUPPORT > WALL ST CLOSES HIGHER ON CITI EARNINGS, HEALTHCARE M&A > NIKKEI RISES TO 1-WEEK HIGH ON WALL STREET GAINS; BOJ AWAITED > TREASURIES-BOND PRICES SLIP ON PROSPECTS OF HAWKISH YELLEN COMMENTS > DOLLAR EDGES UP ON YEN AFTER BANK OF JAPAN TRIMS GDP FORECAST > GOLD RETAINS SHARP LOSSES, TRADES NEAR 4-WEEK LOW > SHANGHAI COPPER SLIDES TO NEAR 2-WEEK LOW ON SPECULATIVE SELLING > BRENT HOVERS NEAR $107 ON LIBYA, IRAQ CONCERNS COMPANY NEWS SKF The world's biggest bearings maker posted a rise in second quarter earnings in line with market expectations on Tuesday and said it expected demand to be relatively unchanged in the third quarter. ROCHE Roche said U.S. health regulators have granted a priority review of its Avastin when combined with chemotherapy to treat women with cervical cancer. NOVARTIS Novartis said it has struck an agreement with Google for its eyecare unit Alcon to license the American technology firm's smart lens technology for medical use. PORTUGAL TELECOM Shareholders of Grupo Oi SA are likely to seek to renegotiate terms of a merger with Portugal Telecom SPGS SA if the latter's debt investments with Banco Espírito Santo SA end up in default, Brazilian Communications Minister Paulo Bernardo said on Monday. BARCLAYS Volume in Barclays PLC's private U.S. trading venue, also known as a "dark pool," fell by more than a third after New York's attorney general filed a lawsuit accusing the British bank of giving an unfair edge to high-speed traders, according to data released on Monday. VW <VOWG_p.DE > Volkswagen will spend $900 million to build a mid-sized SUV at its U.S. plant in Tennessee, nearly doubling the factory's workforce, in an effort to revitalise sales in the world's second-largest auto market. TELEKOM AUSTRIA Carlos Slim's America Movil said on Monday it will take control of just over half of Telekom Austria in a $1 billion buyout offer, giving the Mexican billionaire a base to build up his presence in European telecoms. LUFTHANSA The German airline said on Monday it will reduce service to Venezuela by 40 percent starting next month amid an ongoing dispute about repatriation of revenue from ticket sales INDRA UBS said on Monday it would sell an about 4 percent stake in Spanish technology firm Indra on behalf of investor Casa Grande de Cartagena through an accelerated book build process. POPULAR Spain's Banco Popular said on Monday it had booked a 96 million euro ($131 million) capital gain from the sale of financial rights linked to certain pension and insurance products to a group of investors. MARINE HARVEST The world's largest fish farmer will post operational earnings before interest and taxes (EBIT) of 1.2 billion crowns ($194.24 million) in the second quarter, against 901 million crowns a year ago, it said on Tuesday. SACYR A $180 million claim involving the Panama Canal's disputed $1.6 billion cost overrun is headed to arbitration court in Miami next week, canal officials said on Monday. (Reporting By Francesco Canepa; Editing by Atil Prakash)
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