Europe Factors to Watch-Stocks set to dip; eyes on earnings

miércoles 30 de julio de 2014 02:35 GYT
 

PARIS, July 30 (Reuters) - European stocks were set to dip on Wednesday,
trimming some of the previous session's gains, with a number of blue-chips such
as Airbus, KPN and Infineon in focus after posting
quarterly results.
    At 0630 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were down 0.1-0.3
percent.
    Investors also awaited U.S. growth figures for the second quarter, due at
1230 GMT, as well as the conclusion of the U.S. Federal Reserve's two-day policy
meeting and its statement set to be released at 18:00 GMT. 
    Analysts polled by Reuters expect the U.S. the economy to have grown at an
annualised rate of 3.0 percent in the second quarter, turning around from a 2.9
percent contraction in the first three months of the year due in part to a harsh
winter.
    The Fed, meanwhile, is all but certain to cut its monthly bond-buying
programme by another $10 billion, although the focus has already shifted to when
it will start to raise interest rates. 
    On the earnings front in Europe, Airbus reported first-half underlying
operating profit up 10 percent and reaffirmed its forecasts for the year, while
German chipmaker Infineon raised its full-year outlook on strong demand for its
products from carmakers and industrial customers.
    The banking sector will be in focus after Barclays said underlying
profits fell 7 percent in the first six months of this year after a drop in
investment bank revenue, and Spain's second-biggest bank BBVA reported
a 39 percent fall in second-quarter net profit as lending revenue dropped and
earnings a year ago were boosted by gains from asset sales.
    About 35 percent of STOXX Europe 600 companies have reported
results so far in the earnings season, of which 58 percent have met or beaten
profit forecast, according to Thomson Reuters StarMine data.
    European stocks gained ground on Tuesday, boosted by M&A in the real estate
sector as well as a number of positive earnings reports despite the threat to
the region's economy from further sanctions against Russia.
    The European Union and the United States on Tuesday announced further
sanctions against Russia, targeting its energy, banking and defence sectors in
the strongest international action yet over Moscow's support for rebels in
eastern Ukraine. 
              
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
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  MARKET SNAPSHOT AT 0630 GMT: 
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,969.95  -0.45 %    -8.96
 NIKKEI                              15646.23   0.18 %    28.16
 MSCI ASIA EX-JP                        513.4   0.51 %      2.6
 EUR/USD                               1.3405  -0.03 %  -0.0004
 USD/JPY                               102.13   0.02 %   0.0200
 10-YR US TSY YLD                       2.469       --     0.01
 10-YR BUND YLD                         1.124       --     0.00
 SPOT GOLD                          $1,299.31   0.09 %    $1.21
 US CRUDE                             $101.16   0.19 %     0.19
   
  > GLOBAL MARKETS-ASIAN SHARES RISE, DOLLAR STEADY BEFORE FED 
  > US STOCKS-WALL STREET ENDS DOWN; TWITTER RALLIES AFTER-HOURS 
  > NIKKEI EDGES UP AS STRONG EARNINGS OFFSET WEAK INDUSTRIAL OUTPUT 
  > FOREX-DOLLAR STEADY NEAR 6-MONTH PEAK AHEAD OF GDP AND FED TESTS 
  > PRECIOUS-GOLD TREADS WATER BELOW $1,300 AS FED, ECONOMIC DATA EYED 
  > METALS-LEAD FALLS AS CHART PATTERNS SPARK PROFIT-TAKING 
  > BRENT HOVERS NEAR $107.50 AHEAD OF U.S. DATA 
    
    COMPANY NEWS:
    
    AIRBUS GROUP 
    The aerospace group reported first-half underlying operating profit rose 10
percent and reaffirmed its forecasts for the year, telling investors not to
worry about the health of the commercial jetliner market. 
    
    BARCLAYS 
    The lender said underlying profits fell 7 percent in the first six months of
this year after a drop in investment bank revenue as the British bank attempts
to streamline the business and reform culture. 
    
    KPN 
    The Dutch telecoms group reported better-than-expected second-quarter core
profit as a cost cutting programme partially made up for falling profitability
in most units. 
    
    PSA PEUGEOT CITROEN 
    Peugeot narrowed its first-half net loss and posted the first positive
contribution from its core auto division in three years, as the French
carmaker's recovery plan began to show early results. 
    
    HOLCIM, LAFARGE 
    The Swiss cement maker, which is preparing to merge with French peer Lafarge
, said second-quarter net profit rose nearly 6 percent as a
cost-cutting and restructuring drive helped offset the impact of a drop in
sales. 
    
    BBVA 
    Spain's second-biggest bank reported a 39 percent fall in second-quarter net
profit as lending revenue dropped and earnings a year ago were boosted by gains
from asset sales. 
    
    BAYER 
    Germany's largest drugmaker, posted a 1 percent gain in quarterly adjusted
core earnings, as strong sales growth of newly introduced pharmaceuticals was
tempered by a strong euro weighing on the value of overseas sales. 
    
    INFINEON 
    German chipmaker on Wednesday raised its full year outlook on strong demand
for its products from carmakers and industrial customers. 
    
    NOBEL BIOCARE 
    Swiss dental implant maker Nobel Biocare confirmed it has been approached by
potential buyers and is in "very early" talks with them about its sale. 
    
    DEUTSCHE BANK BARCLAYS 
    New York's banking regulator is seeking to place government monitors in the
U.S. offices of Deutsche Bank AG and Barclays Plc as part of its investigation
into the foreign-exchange market, a person familiar with the matter said.
 
    
    HEIDELBERGCEMENT 
    German cement maker posted flat second-quarter operating profit, missing
consensus for a 9 percent rise, as the unfavourable impact of a strong euro
weighed on results. 
    
    VOLKSWAGEN 
    The carmaker is closing in on Toyota Motor Corp as the global
leader in vehicle sales, with a rapid expansion drive in China - the world's
biggest auto market - while Toyota curbs growth to focus on shoring up quality.
 
    
    FINMECCANICA 
    Italy's Finmeccanica said on Tuesday it had reached an agreement with
prosecutors to settle legal proceedings over a scrapped helicopter contract
between one of its units and India, adding this did not equal an acknowledgment
of any wrongdoing. 
    
    MEDIASET 
    Italy's biggest broadcaster Mediaset reported a net loss in the first half
of this year as solid results at its Spanish unit failed to offset falling
domestic revenues. 
    
    DEUTSCHE TELEKOM 
    The long-anticipated merger of Sprint Corp and Deutsche Telekom unit
T-Mobile US Inc is not expected to occur before September, with the
companies continuing due diligence and preparing a detailed case for a deal
before U.S. regulators, according to people familiar with the matter.
    
    ERAMET 
    The French mining and metals group said it expects current operating income
to improve in the second half of the year from the first as nickel prices
improve and manganese ore prices level out. 
    
    TELEFONICA 
    Telefonica is in talks to acquire Mexico's third largest wireless telecoms
company Iusacell, worth between 2.5 billion euros and 3 billion euros, website
El Confidencial reported on Wednesday, citing unnamed sources close to the
talks. 
    
    SCHNEIDER ELECTRIC 
    Electrical gear maker confirmed its full-year targets on Wednesday after it
posted a 3.2 percent rise in first-half sales and roughly flat earnings that
missed expectations. 
    
    SUEZ ENVIRONNEMENT 
    French waste and water group said first-half net profit nearly doubled on
the strength of its European water business and a disposal gain on the sale of
its Macau CEM unit. 
    
    
    
    

 (Reporting by Blaise Robinson; Editing by Alistair Smout)