European Factors to Watch-Shares to cautiously rebound; eyes on Ukraine
EDINBURGH, July 21 (Reuters) - European stocks were seen edging higher on Monday, resuming a rebound from last week's lows as traders cautiously anticipated a peaceful resolution to the Ukraine crisis, with gains set to be limited without further clarity on the situation. European shares opened on a weaker footing in the previous session after a passenger plane was shot down over Ukraine on Thursday, although a feared deterioration in the situation over the weekend did not materialise. The pan-European FTSEurofirst 300 ended flat on Friday, with volatility falling during the day as the loss of the Malaysian jet with 298 people aboard was also seen as intensifying international pressure to resolve the worst crisis between Russia and the West since the Cold War. The United States is yet to introduce new sanctions against Russia for what it says is Russia's complicity in the downing of the jet, and verbal criticism is yet to be followed up with action. Wall Street led global markets higher on Friday, with Europe's increased exposure to Russia prompting underperformance during the crisis as well as making their political leaders less willing to sanction Russia heavily. "So far European Union sanctions have come across as somewhat half-hearted, but given last week's horrific events the pressure for a much tougher approach towards Russia will be much harder to resist," Michael Hewson, chief market analyst at CMC Markets, said in a note. "This particular story looks like it has some way to run and investors would be unwise to become complacent about it." At 0623 GMT, futures for the Euro STOXX 50, Britain's FTSE 100 , Germany's DAX and France's CAC were flat to 0.2 percent higher. On the earnings front, Philips was a stand out performer in a light day for corporate reports. The Dutch lighting and health care company said it expected core profit to rise in the second half of the year, benefitting from cost cuts. However, Britain's biggest retailer Tesco is set to be in focus after its chief executive quit following a profit warning. Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0621 GMT: LAST PCT CHG NET CHG S&P 500 1,978.22 1.03 % 20.1 NIKKEI 15215.71 -1.01 % -154.55 MSCI ASIA EX-JP 500.79 0.23 % 1.16 EUR/USD 1.3537 0.1 % 0.0013 USD/JPY 101.23 -0.09 % -0.0900 10-YR US TSY YLD 2.482 -- 0.00 10-YR BUND YLD 1.158 -- 0.00 SPOT GOLD $1,310.68 0.02 % $0.28 US CRUDE $102.87 -0.25 % -0.26 > GLOBAL MARKETS-Asian stocks firmer, upbeat on US earnings > US STOCKS-Wall St rebounds; indexes up for the week > Nikkei posts biggest drop in 3 weeks, downing of jet hits mood > TREASURIES-Safety trade intact on geopolitical tensions > FOREX-Major currencies calm as geopolitical risk lingers > PRECIOUS-Gold holds above $1,300 as geopolitical risks eyed > METALS-London copper near 3-week low; surplus on horizon > Brent steady above $107 as investors eye Ukraine tension COMPANY NEWS BSKYB : BSkyB could agree a deal in the next two weeks to buy Rupert Murdoch's Sky Italia and his stake in Sky Deutschland, the Sunday Times reported. BARCLAYS : Trading firms and employees raised concerns about high-speed traders at Barclays Plc's "dark pool" months before the United States accused the bank of favoring its high-frequency trading clients, the Wall Street Journal reported, citing people familiar with the firms. ANGLO AMERICAN : World no. 1 platinum producer Anglo American Platinum said on Monday it planned to sell its Union mine, Rustenburg operations and another asset in South Africa, a widely expected move after it was hit by a five-month strike. ROCHE Roche plans to steer clear of the wave of big takeovers sweeping through the healthcare industry and focus instead on small acquisitions and partnerships, the Swiss drugmaker's chief executive said in an interview published on Saturday. For more, click on: JULIUS BAER Julius Baer said on Monday that it will buy the private banking activities of Bank Leumi in Luxembourg and Switzerland, in a deal which will cost up to 70 million Swiss francs ($78.01 million). For more click on HOLCIM, LAFARGE Cement makers Holcim and Lafarge are in "advanced" talks with European competition regulators over their proposed merger, and have filed formal notifications in five major markets, Holcim Chief Executive Bernard Fontana told the Wall Street Journal. For more, click on PHILIPS The Dutch lighting and health care company said it expected core profit to rise in the second half of the year, benefitting from cost cuts. SAP The software company is not interested in taking over smaller rival Software AG, finance chief Luka Mucic told Euro am Sonntag. Related news SANTANDER, CAIXABANK Spanish banks Caixabank and Banco Santander are the frontrunners to buy bailed-out lender Catalunya Banc in the government's third attempt to sell it, sources with knowledge of the process said on Friday. Separately, a former Santander executive will pay $1.92 million to settle a U.S. lawsuit accusing him of insider trading ahead of a proposed 2010 takeover of Potash Corp of Saskatchewan Inc by mining group BHP Billiton Ltd . MONTE DEI PASCHI The banking foundation that used to be Monte dei Paschi's top shareholder will seek damages from former members of its board and financial advisers in relation to the Italian bank's 2008 costly takeover of smaller rival Antonveneta, it said on Friday. (Reporting by Alistair Smout; Editing by Sunil Nair and Sudip Kar-Gupta)
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