Europe Factors to Watch-Shares seen mixed; euro zone inflation data eyed
(Adds details, company news) PARIS, Sept 30 (Reuters) - European stocks were seen mixed on Tuesday, as soft manufacturing data from China and civil unrest in Hong Kong kept investors on edge. At 0615 GMT, futures for the Euro STOXX 50, for UK's FTSE 100 , for Germany's DAX and for France's CAC were down 0.1 percent to up 0.2 percent. China's final HSBC/Markit Manufacturing Purchasing Managers' Index (PMI) hovered at 50.2 in September, unchanged from the August reading which was a three-month low, but lower than a preliminary reading of 50.5. The data eased fears of a hard landing but pointed to a still-sluggish economy. Tens of thousands of pro-democracy protesters extended a blockade of Hong Kong streets on Tuesday, stockpiling supplies and erecting makeshift barricades ahead of what some fear may be a push by police to clear the roads before Chinese National Day. On the macro front, investors awaited on September inflation data for the euro zone, seeking cues on the prospect for European Central Bank to step up its efforts to stave off deflation risks. In a sign of growing risk aversion from investors, Japanese fund managers cut the proportion of shares in their model portfolio allocations in September as they grew wary of geopolitical risks and uncertain economic outlooks at home, in Europe and in China. Shares of Airbus will be eyed as the group is set to win European safety certification for its newest airliner, the A350, on Tuesday, people familiar with the plans said. Shares in Allianz will also be in focus after top executives from the firm and from its fund management unit Pimco scrambled on Monday to stem the outflow of money after the stunning exit of star bond manager Bill Gross last week. Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0642 GMT: LAST PCT CHG NET CHG S&P 500 1,977.80 -0.25 % -5.05 NIKKEI 16173.52 -0.84 % -137.12 MSCI ASIA EX-JP 473.41 -0.14 % -0.68 EUR/USD 1.2692 0.06 % 0.0008 USD/JPY 109.27 -0.17 % -0.1900 10-YR US TSY YLD 2.488 -- 0.00 10-YR BUND YLD 0.960 -- 0.00 SPOT GOLD $1,216.30 0.05 % $0.61 US CRUDE $94.61 0.04 % 0.04 > GLOBAL MARKETS-ASIA STOCKS UNSETTLED BY HK, CHINA FACTORY DATA > US STOCKS-WALL ST ENDS DOWN ON HONG KONG TENSIONS, FORD OUTLOOK > NIKKEI SLIPS ON WEAK ECONOMIC DATA; SUMITOMO DIVES AFTER PROFIT WARNING > TREASURIES PRICES GAIN AS STOCKS FALL, YIELD CURVE FLATTENS > FOREX-DOLLAR SLIPS BUT SET TO END SEPTEMBER WITH SOLID GAINS > PRECIOUS-GOLD POISED FOR WORST MONTH IN FIFTEEN ON DOLLAR STRENGTH > METALS-LONDON COPPER STEADY AFTER CHINA DATA, AHEAD OF HOLIDAYS > BRENT CRUDE SLIPS BACK TOWARDS $97, SET FOR THIRD MONTHLY DROP COMPANY NEWS: ALLIANZ Top executives of Pimco and its German parent, Allianz SE, scrambled on Monday to stem the outflow of money after the stunning exit of star bond manager Bill Gross last week, but even after months of internal strife Allianz said it plans to let Pimco continue to steer its own ship. Vanguard Group and BlackRock Inc BLK.N could be prime destinations for hundreds of billions of dollars in assets that may flee Pimco in the wake of the sudden exit of Bill Gross, the celebrated "Bond King" of U.S. mutual funds. His new company, Janus Capital Group Inc JNS.N, may see Gross's cachet attract tens of billions of dollars, investors and analysts said. AIRBUS Airbus looks set to win European safety certification for its newest airliner, the A350, on Tuesday, people familiar with the plans said. The stamp of approval will allow Europe's newest wide-body jetliner to enter service once the first production model has been tested and delivered to launch customer Qatar Airways, which the companies expect to happen in the fourth quarter. NEXT British clothing retailer Next NXT.L said on Tuesday it will have to lower its full-year profit forecast if the country's unusually warm autumn weather continues. CLUB MED Italian tycoon Andrea Bonomi has written to directors of his bid target Club Mediterranee asking for updated financial information, a letter seen by Reuters shows, in a sign he still hopes to win control of the French holiday company. SHIRE AbbVie's chief executive has sought to quash any doubts that AbbVie would go through with its acquisition of Shire in the wake of the Treasury's proposed changes to U.S. inversion rules, the Wall Street Journal said. ROYAL BANK OF SCOTLAND The State-backed bank said late on Monday it would invest more than 1 billion pounds ($1.6 billion) to improve services for its commercial and corporate customers. TELECOM ITALIA Egyptian tycoon Naguib Sawiris would invest in Telecom Italia as long as the company kept its stake in Brazilian mobile operator TIM Participacoes, he said on Monday, as foreign bid interest picks up in the struggling operator. AIR FRANCE-KLM Air France expects to operate almost all medium-haul flights and over 90 percent of long-haul flights on Tuesday as services return to normal following a two-week pilots strike. SANOFI Sanofi and its partner Regeneron unveiled positive mid-stage trial results for their experimental drug dupilumab in patients with chronic sinusitis with nasal polyps. LVMH The French luxury group's biggest watch brand, Tag Heuer, has cut some management and production jobs in Switzerland in response to an industry slowdown, the head of LVMH watches said on Monday. SPANISH BANKS The Bank of Portugal has been in talks with Spanish banks in its search for a buyer for the healthy arm of Espirito Santo, Novo Banco, Expansion and Cinco Dias reported, citing sources. ALLIANZ DoubleLine Capital, an investment firm that has been a major rival of Pimco, saw between $400 million and $500 million of net inflows on Friday in the wake of Bill Gross' departure from Pimco, DoubleLine CEO Jeffrey Gundlach said on Monday. COMMERZBANK New York's financial regulator wants some Commerzbank employees to be fired as part of a settlement over allegations the German lender improperly processed transactions with Iran and other countries facing U.S. sanctions, according to people familiar with the matter. LUFTHANSA The airline has been forced to cancel about 50 long-haul flights to and from Frankfurt after its pilots called a strike for Tuesday in a dispute over their early retirement scheme. CEO Carsten Spohr said in a video statement that the airline would endure the strikes to be able to invest into services, aircraft and staff in the future. KINNEVIK Online fashion retailer Zalando said late on Monday its shares would be priced at 21.50 euros ($27.28) a piece for its initial public offering (IPO). Kinnevik said separately that its more-than-30 percent stake in Zalando was valued at 15.5 billion Swedish crowns based on the final offering price. (Reporting by Blaise Robinson; Editing by Atul Prakash)
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