European Factors to Watch-Shares set to fall after jet downed in Ukraine

viernes 18 de julio de 2014 02:32 GYT

(Adds company news, details and futures)
    EDINBURGH, July 18 (Reuters) - European stocks were seen falling on Friday,
extending losses made in late trade in the previous session after a passenger
plane was downed over Ukraine, ratcheting up geopolitical tensions in the
    Reports that a Malaysian airliner had crashed triggered a sell-off in very
late trade on Thursday, and after market close, a U.S. official said it strongly
suspected a surface-to-air missile fired by Ukrainian separatists brought down
the plane. 
    The incident set the tone for substantial losses in U.S. and Asian stocks.
    The pan-European FTSEurofirst 300 index extended losses to close
down by 1 percent at 1,363.19, having already been in negative territory after
new sanctions from the West on Russia hit sentiment towards stocks with exposure
to the country. 
    Uncertainty over how the incident would impact the conflict between the
Ukrainian government and separatists in the east could see stocks fall even if
the two sides managed to de-escalate tensions over the coming days, analysts
    "Price action in today's session could be very telling, especially with
traders still harbouring many questions around the short-term implications in
Ukraine," Chris Weston, chief market strategist at IG, said.
    "Unless we hear more definitive news, the uncertainty could see elevated
risk aversion."
    At 0626 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were 0.2 to 0.3 percent
    The crash was set to take the shine off of a number of expectation-beating
profit reports, with Sweden's Swedbank, mobile telecom gear maker
Ericsson and home appliances firm Electrolux all reporting
results that beat consensus estimates.
    With 12 percent of companies in the DJ Stoxx 600 having reported
results so far this earnings season, 73 percent have beaten or met expectations,
according to Thomson Reuters StarMine data.
    However global truck maker Volvo posted a smaller than expected
rise in profit after a slow rebound in demand in Europe left it with
    Europe bourses in 2014: (
    Asset performance in 2014: (
                                              LAST   PCT CHG   NET CHG
 S&P 500                                  1,958.12   -1.18 %    -23.45
 NIKKEI                                   15188.14   -1.18 %   -182.12
 MSCI ASIA EX-JP                            498.89    -0.2 %     -1.02
 EUR/USD                                    1.3522   -0.03 %   -0.0004
 USD/JPY                                    101.30    0.15 %    0.1500
 10-YR US TSY YLD                            2.467        --     -0.01
 10-YR BUND YLD                              1.146        --     -0.01
 SPOT GOLD                               $1,314.80   -0.19 %    -$2.50
 US CRUDE                                  $103.63    0.43 %      0.44
  > GLOBAL MARKETS-Asian shares fall as jet downing hits sentiment   
  > US STOCKS-Wall St slides on Malaysian airliner crash news    
  > Nikkei in biggest drop in 2 months as downing of jet hits mood    
  > TREASURIES-Safe-haven buying of U.S. bonds after jet downed    
  > FOREX-Yen surges as jet downing stokes geopolitical worries    
  > PRECIOUS-Gold dips, safe-haven bids support after plane crash    
  > METALS-London copper set for biggest weekly drop since June    
  > Brent climbs above $108 after plane downed in Ukraine        
    Germany's largest airline said its planes would steer clear of east
Ukrainian air space after a Malaysian airliner crashed. The airline continues to
serve the airports of Kiev and Odessa for now. 
    Related news 
    Shire Plc and U.S. drugmaker Abbvie Inc plan to announce a $53
billion merger as soon as Friday morning, two people said on Thursday.
    Insurance on the Malaysian airliner brought down over Ukraine is likely to
pay out relatively quickly if the cause of the crash is determined, but
observers say insurance for the loss of 298 lives and other liability could be
complex and lengthy. 
    Allianz is the lead hull and liability reinsurer covering a Malaysian
airliner, Bloomberg reported. 
    Related news 
    The French spirits group said fiscal first-quarter sales fell 5.7 percent
year-on-year, hit by sluggish trading in Western Europe and by China's
government crackdown on corruption that continued to sap demand for premium
    The Swedish bank reported second-quarter operating profit above expectations
and repeated it will keep costs in 2014 at the same level as last year.
    For more on the company, click on 
    The Finnish IT services provider reported a surprise fall to its quarterly
earnings as customer insourcing hit its product development service business.
    For more on the company, click on 
    The global truck maker Volvo posted a smaller than expected rise in core
earnings on Friday and said a recovery in the European market had come later
than anticipated in the second quarter, resulting in over-capacity in
    For more on the company, click on 
    The mobile telecom gear maker posted second-quarter sales and operating
income above expectations on Friday and repeated key contracts won by the group
would lift sales in the second half of the year. 
    For more on the company, click on 
    The French food group said it was buying a 40 percent stake in Brookside,
East Africa's top dairy producer, as part of plans to expand in new markets amid
weak growth in Europe and a slowing economy in China. 
    The French hotel operator reported a 3.3 percent like-for-like rise in
second-quarter sales, helped by a recovery in southern Europe and "solid"
overall trends. 
    The French luxury goods maker posted a 9.6 percent rise in second-quarter
sales at constant exchange rates as a ramp-up in production at new sites helped
leather goods sales. 

 (Reporting by Alistair Smout; Editing by Tricia Wright)