European Factors to Watch-Shares to edge lower; Shire seen slumping

miércoles 15 de octubre de 2014 02:39 GYT
 

LONDON, Oct 15 (Reuters) - European stocks were seen opening flat on
Wednesday as some upbeat results from French consumer groups helped lift an
otherwise subdued market sentiment after some late profit taking on Wall Street.
    The UK healthcare sector was set to come under pressure, with Shire 
indicated to open down as much as 20 percent after AbbVie Inc said it
intended to reconsider its recommendation to its shareholders to vote in favor
of the 32 billion pound ($54.7 billion) merger with the UK group.
 
    Futures for the Euro STOXX 50 equity index, Germany's DAX 
and France's CAC were unchanged at 0635 GMT.
    French food group Danone posted a better-than-expected underlying
rise in third-quarter sales on Wednesday, helped by improving baby food sales in
Asia.
    Retailer Casino also posted sales slightly ahead of expectations
but recorded a slowdown in Brazil, its biggest market, and weaker sales at home,
resulting from low consumer confidence and poor summer weather.
    The world's biggest luxury group LVMH posted improved sales growth
for the third quarter on Tuesday although it highlighted an uncertain economic
and financial environment. 
    The Euro STOXX 50 index has fallen 9 percent since mid September
as economic data from the region's largest economy, including Germany, continued
to worsen and stimulus measures unveiled by the European Central Bank, including
a programme to buy asset-backed securities and covered bonds, failed to reassure
the market.
    Investors will be watching out for any sign that the ECB is prepared to do
more to stimulate the region's economy when President Mario Draghi speaks at an
event in Germany at 0700 GMT.     
    
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
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  MARKET SNAPSHOT AT 0635 GMT: 
    
                                                 LAST     PCT CHG    NET CHG
 S&P 500                                     1,877.70      0.16 %       2.96
 NIKKEI                                      15073.52      0.92 %     137.01
 MSCI ASIA EX-JP                               466.33      0.38 %       1.77
 EUR/USD                                       1.2644     -0.11 %    -0.0014
 USD/JPY                                       107.33      0.27 %     0.2900
 10-YR US TSY YLD                               2.224          --       0.02
 10-YR BUND YLD                                 0.839          --       0.00
 SPOT GOLD                                  $1,226.70     -0.46 %     -$5.65
 US CRUDE                                      $82.02      0.22 %       0.18
 
  
  > ASIA EDGY ON LINGERING GROWTH ANXIETY, CHINA INFLATION SLOWS    
  > S&P 500, NASDAQ BREAK 3-DAY SLIDE BUT DOW DIPS                         
  > NIKKEI MAY SNAP 5-DAY LOSING STREAK; GLOBAL GROWTH WORRIES PERSIST     
  > U.S. LONG BOND YIELDS UNDER 3 PCT ON ECONOMIC SLOWING, SHORT-COVERING 
  > DOLLAR STANDS TALL AS EURO HIT BY ECONOMIC GLOOM, YEN ALSO WILTS     
  > GOLD DIPS BUT GLOBAL GROWTH WORRIES COULD SUPPORT                    
  > COPPER HOVERS NEAR FOUR-WEEK PEAK, SUPPLY IN FOCUS                  
  > BRENT RECOVERS ABOVE $85 AFTER BIGGEST FALL IN THREE YEARS            
    
    COMPANY NEWS:        
    LVMH - The world's biggest luxury group, posted improved sales
growth for the third quarter on Tuesday as stronger trading in Europe and the
United States helped make up for weakness in Asia.   
    
    DANONE - The French food group posted a better-than-expected 6.9
percent underlying rise in third-quarter sales on Wednesday, helped by improving
baby food sales in Asia. 
    
    CASINO - The retailer said sales growth slowed sharply in the
third quarter, reflecting a slowdown in Brazil, its biggest market, and weaker
sales at home resulting from low consumer confidence and poor summer weather.
 
     
    SHIRE - AbbVie Inc said it intends to reconsider its recommendation
to its shareholders to vote in favor of the 32 billion pound ($54.7 billion)
merger with Shire Plc due to the changing U.S. tax regulations. 
    
    RIO TINTO - The world's No. 2 iron ore miner said a strong third
quarter and productivity gains led to a 12 percent rise in iron ore production
as price volatility persists in the global market. 
    
    BARCLAYS - Barclays' auction of its index business, which includes
the widely used Barclays U.S. Aggregate Bond Index, has hit a snag, after
would-be buyers realized some crucial bond pricing data that does not belong to
the British bank will not be part of the package, two people familiar with the
situation said. 
    
    ASML HOLDING - ASML confirmed its full-year sales guidance on
Wednesday, citing a solid backlog. 
    
    BALFOUR BEATTY PLC -  Balfour Beatty will hand over the reins of
the British construction group on Wednesday to the chief executive of defence
research firm Qinetiq Group Plc QQ.L, Sky News said. 
    
    OMV - Chief Executive Gerhard Roiss will leave the Austrian energy
group as of mid-2015, nearly two years ahead of schedule, as part of a
management shakeup which will also see OMV's gas business subsumed into a new
division, OMV said. 
    
    CORPORACION FINANCIERA ALBA, FERROVIAL - Spain will sell a
21 percent stake in its state-owned airports operator Aena to Corporacion
Financiera Alba, Ferrovial and British investment fund TCI, Aena's holding
company Enaire said on Tuesday. 
    
    FINMECCANICA - Finmeccanica has shortlisted China's CNR
Corporation and Hitachi of Japan to buy its rail assets but
binding offers have not yet been presented, Chief Executive Mauro Moretti said
on Tuesday in a parliamentary hearing. 

 (Reporting by Francesco Canepa; Editing by Sudip Kar-Gupta)