European Factors to Watch-Shares seen sharply higher on Fed minutes
LONDON, Oct 9 (Reuters) - European shares were likely to rebound sharply from the previous session's two-month lows on Thursday on expectations that the U.S. Federal Reserve will not start hiking interest rates until the economy becomes strong enough to absorb such a move. The minutes of the Sept. 16-17 meeting released on Wednesday expressed concern the rising dollar could slow a needed rebound in inflation and highlighted economic turmoil in Europe and Asia, another factor behind the Fed's stance towards keeping an accommodative policy in place for the near future. "After a long period of underperformance as markets priced in a greater possibility of a rate hike, the FOMC minutes seem to have 'temporarily' poured cold water on this notion and given some relief to struggling equities," IG analyst Stan Shamu said in a morning note. At 0634 GMT, futures for Euro STOXX 50, Germany's DAX, France's CAC and Britain's FTSE 100 were up 0.7 to 1.0 percent. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.3 percent on Thursday, while U.S. shares rose 1.6 to 1.9 percent in Wednesday. Before the release of the Fed minutes on Wednesday, the FTSEurofirst 300 index of top European shares ended 0.8 percent lower at 1,319.12 points, losing 6.5 percent over the past three weeks. On the macroeconomic front, Germany exports slumped by 5.8 percent in August, their biggest fall since the height of the global financial crisis in January 2009, in yet another sign that Europe's largest economy is faltering amid broader euro zone weakness and crises abroad. Investors' focus is gradually shifting to the third-quarter earnings results. Aluminium major Alcoa kicked off the U.S. reporting season on Wednesday by posting a stronger-than-expected increase in third-quarter profit as higher aluminum prices and lower costs drove a recovery in its business unit that produces aluminum. The European earnings season will gather pace in the third week of October. Analysts said that the recent sharp slide in the euro and commodity prices is set to provide tailwind for European companies struggling against economic weakness, and soon break a streak of earnings downgrades that has already lasted 3-1/2 years. ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0631 GMT: LAST PCT CHG NET CHG S&P 500 1,968.89 1.75 % 33.79 NIKKEI 15478.93 -0.75 % -117.05 MSCI ASIA EX-JP 474.38 1.23 % 5.77 EUR/USD 1.2742 0.07 % 0.0009 USD/JPY 107.87 -0.19 % -0.2100 10-YR US TSY YLD 2.320 -- -0.01 10-YR BUND YLD 0.891 -- -0.01 SPOT GOLD $1,227.40 0.51 % $6.20 US CRUDE $87.66 0.4 % 0.35 U.S. COMPANIES REPORTING : Q4 2014 Family Dollar Q3 2014 PepsiCo Inc MACROECONOMIC DATA/EVENTS (GMT) : 1100 GB BOE Rate 1230 US Initial Jobless Claims > ASIAN SHARES SOAR ON WINGS OF DOVISH FED MESSAGE > S&P 500 HAS BEST DAY IN A YEAR FOLLOWING FED MINUTES > NIKKEI LIFTED BY FED MINUTES, BUT STRONGER YEN CLOUDS OUTLOOK > TREASURIES-SHORT-, MEDIUM-DATED YIELDS FALL AFTER FED MINUTES > DOLLAR HITS FRESH 2-WEEK LOW IN WAKE OF DOVISH FED MINUTES > GOLD RISES TO NEAR 2-WEEK HIGH AS U.S. RATE HIKE FEARS EASE > LONDON METALS UP AS FED MINUTES HINT AT LOW RATES FOR LONGER > BRENT COMES OFF 27-MTH LOW, HOLDS ABOVE $91 AS DOLLAR WEAKENS COMPANY NEWS: EDF The former head of France's main employers' union, Laurence Parisot, is interested in taking the helm of state-controlled nuclear plan operator EDF, Le Figaro newspaper quoted her as saying on Wednesday. SUEDZUCKER The company warned on Thursday that it had become more challenging to reach its full-year profit target as the European sugar and ethanol markets continued to deteriorate, causing a drop in quarterly profits. MICHELIN The tyremaker may buy a budget range brand to complete its portfolio of chiefly premium products, the group's chief executive told France Info radio. CASINO, CARREFOUR French retailers Casino and Intermarche said they would regroup their purchases of top branded products sold in France to clinch better deals and fight back growing pricing pressure from the Auchan-Systeme U alliance, Carrefour and Leclerc. BARCLAYS The bank has agreed to pay nearly $20 million to resolve a U.S. class action lawsuit accusing the British bank of manipulating the Libor benchmark interest rate, according to court papers filed Wednesday. THALES The French aerospace and defence group plans to reduce the number of sites involved in research and development for its avionics business to cut costs, a senior executive said. The group plans to concentrate the work in four French sites instead of six in a shake-up that will entail the transfer of 500 posts but no forced redundancies, Michel Mathieu, executive vice-president of Thales Avionics, told Reuters. SPIE The French energy services firm is struggling to attract investors for its Paris listing amid tough market conditions, with books still not covered the day before the deal is due to price and start trading, two sources familiar with the matter said. CLUB MED The takeover battle for the company has blocked its development for over a year and need to end quickly, independent director Georges Pauget said in an interview with Les Echos newspaper. INGENICO The payment systems company said it had extended its multi-channel customer loyalty program - developed initially for Sportpoint customers using smartcards or iPhones - to customers using smartphones operating on Android. AREVA The French nuclear group said it had begun processing uranium ore at its Canadian mill at McClean Lake, Saskatchewan, bringing a new source of the radioactive metal to market after delays. LUFTHANSA Second day of two-day strike by pilots at Lufthansa Cargo. The company has said it would operate all scheduled flights despite the planned strike. Related news GERRESHEIMER The drugs packaging firm expects organic sales growth of 1 to 3 percent at constant currencies for fiscal 2015 according to its initial indications, it said during a presentation late on Wednesday. Related news GAMESA Spanish wind turbine manufacturer Gamesa has been awarded a contract to supply an affiliate of Turkey's Kardemir with nine generators with a total capacity of 18 megawatts, the Spanish company said in a press release on Thursday. FERROVIAL, CORP ALBA The partial sale of Spanish airports operator Aena is having a tough start as less institutional investors than initially expected formulated offers and doubts over the success of the operation grow within the banking community, sources said. Separately, Spanish constructor and airport operator Ferrovial, Corp Alba and The Children's Investment Fund (TCI) have presented offers for Aena, Expansion reported, citing sources close to the deal. RIO TINTO : Rio Tinto said falling iron ore prices would lead to the elimination of 125 million tonnes of iron ore supply among higher cost producers in 2014. SANTANDER Spanish bank Santander will not consider bidding for Portugal's Novo Banco until it sees fully audited accounts, Cinco Dias reported, citing the head of Santander's Portuguese arm Antonio Viera Monteiro. (Reporting by Atul Prakash; Editing by Sudip Kar-Gupta)
© Thomson Reuters 2016 All rights reserved.