European Factors to Watch-Shares seen sharply higher on Fed minutes

jueves 9 de octubre de 2014 02:38 GYT
 

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)