Europe Factors to Watch-Shares set to extend losses; eyes on ECB

jueves 2 de octubre de 2014 02:19 GYT
 

PARIS, Oct 2 (Reuters) - European stocks were set to fall on Thursday,
extending the previous session's sharp retreat and tracking losses on Wall
Street, while investors await details on the European Central Bank's new
asset-buying plan.
    Shares in Allianz will be in focus after the German insurer's
asset management unit Pimco said it suffered a record $23.5 billion of
withdrawals from its flagship Pimco Total Return Fund in September, with its
largest daily outflow occurring on the day of Bill Gross's surprise resignation
from the firm. 
    At 0615 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were down 0.3-0.5
percent.
    Later on Thursday, the ECB will unveil a new asset-buying plan which it
hopes will prop up inflation and revive the euro zone economy. The ECB plans to
buy asset-backed securities (ABS) - packages of reparcelled loans - with a view
to spurring the market for such credit and supporting lending to the small- and
mid-sized firms that form the backbone of the euro zone economy. 
    A Reuters poll on Monday showed money market traders on average expect the
ECB to buy a total of 200 billion euros of ABS and covered bonds over a year.
 
    Recent sluggish economic data, including falling inflation, has also fuelled
expectations that the central bank will later introduce full-blown quantitative
easing (QE) and buy government bonds to stimulate the economy.
    BlackRock's head of European and global bonds, however, warned on Wednesday
that investors loading up on some of the euro zone's riskiest government bonds
on expectations that the ECB will buy them are making a mistake. 
    
     Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
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  MARKET SNAPSHOT AT 0615 GMT: 
                                         LAST   PCT CHG  NET CHG
 S&P 500                             1,946.16   -1.32 %   -26.13
 NIKKEI                              15661.99   -2.61 %  -420.26
 MSCI ASIA EX-JP                       470.89    -0.2 %    -0.93
 EUR/USD                               1.2632    0.07 %   0.0009
 USD/JPY                               108.78   -0.08 %  -0.0900
 10-YR US TSY YLD                       2.402        --     0.00
 10-YR BUND YLD                         0.899        --    -0.01
 SPOT GOLD                          $1,218.07    0.39 %    $4.68
 US CRUDE                              $90.69   -0.04 %    -0.04
 
  > GLOBAL MARKETS-ASIA SPOOKED BY WEAK GLOBAL DATA; TOKYO STOCKS DIP 
  > US STOCKS-WALL ST TUMBLES ON EBOLA FEARS; SMALL CAPS DROP 
  > TOKYO'S NIKKEI SHARE AVERAGE FALLS 2.00 PCT 
  > TREASURIES-U.S. LONGER-DATED BOND PRICES GAIN MORE ON PIMCO OUTFLOWS 
  > YEN SQUEEZES HIGHER AS DISAPPOINTING PMIS DIM MOOD, EURO EYES ECB 
  > PRECIOUS-GOLD GETS BOOST FROM SAFE-HAVEN BIDS AS EQUITIES SLIDE 
  > METALS-LONDON COPPER EDGES UP AS DOLLAR RALLY PAUSES 
  > BRENT HOVERS NEAR 27-MONTH LOW AS ABUNDANT SUPPLY WEIGHS 
    
    COMPANY NEWS:
    
    ALLIANZ 
    The German insurer's asset management unit Pimco suffered a record $23.5
billion of withdrawals from its flagship Pimco Total Return Fund in September,
with its largest daily outflow occurring on the day of Bill Gross's surprise
resignation from the firm. 
    
    SABADELL 
    Colombian financier Jaime Gilinski, Banco Sabadell's biggest shareholder
after buying into it last year, has raised his stake in the Spanish lender from
5 percent to 7.5 percent, he told Expansion newspaper in an interview.
    
    HOCHTIEF, ACS 
    The German building group controlled by Spain's ACS is close to the sale of
its Formart real estate business, two sources familiar with the matter told
Reuters on Wednesday. 
    
    CARREFOUR, CASINO 
    Leclerc, France's second-largest retailer by market share, plans to spend
1.2 billion euros to renovate its hypermarkets and beef up its click-and-collect
service even as the outlook for consumer spending remains poor. 
    The powerful rival to Carrefour and Casino said it expected tough times to
last due to sluggish French consumer spending, and that it would keep its focus
on low prices.
       
    ORANGE, BOUYGUES 
    The telecom operator will offer Netflix video streaming services on its
set-top boxes starting in November, Chief Executive Stephane Richard told French
newspaper Le Monde. Smaller rival Bouygues also said last month it would market
the service in November. 
    
    SCHNEIDER ELECTRIC 
    The French electrical equipment maker said it had finalised the sale of its
sensors business to private equity firms The Carlyle Group and PAI Partners.
 
    
    PUBLICIS 
    While advertisers have noticeably reduced advanced spending on TV spots this
year, media companies have trained the spotlight on sports and other live
programming to draw ad dollars, a top executive from French advertising group
Publicis said. 
    
    GTECH 
    The Italian gaming group on Wednesday announced a plan to buy back shares
for up to 9.5 percent of its capital. In a statement the group said its board
had also approved its planned cross-border merger of GTECH into Georgia
Worldwide plc. 
    
    

 (Reporting by Blaise Robinson, editing by Tricia Wright)