Europe Factors to Watch-Shares set to dip on NY Ebola case
PARIS, Oct 24 (Reuters) - European stocks were set to fall on Friday, reversing the previous session's gains as investors fretted about news that a doctor who had recently returned to New York from West Africa had tested positive for Ebola. At 0610 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. A New York City doctor who treated Ebola patients in West Africa became the first person to test positive for the virus in America's largest city, setting off fresh fears about the spread of the disease. U.S. stock index futures fell on the news while safe-haven assets such as the yen and U.S. bonds gained ground. On the earnings front, global truck maker Volvo will be in the spotlight after posting a surprise rise in core earnings, but said it expected industry-wide heavy-duty truck sales to be flat in Europe next year. BASF, the world's largest chemicals company by sales, also posted forecast-beating quarterly results, while mobile telecom gear maker Ericsson posted third-quarter operating profit below expectations, and said business activity in North America had slowed down. So far in Europe's earnings season, about a fifth of STOXX 600 companies have reported results, of which 68 percent have met or beaten analyst forecasts, according to Thomson Reuters Starmine data. In absolute terms, companies have posted a 13.7 percent rise in quarterly profits, well above a 6.8 percent rise in quarterly earnings posted by S&P 500 companies. On the macro front, data showed German consumer morale picked up heading into November after slight declines in the previous two months, suggesting consumers feel confident about their own incomes and are willing to spend even though Germany's economy is slowing. Euro zone banking stocks will also be in focus. On Thursday, the euro zone's 130 biggest banks received the European Central Bank's final verdict on their finances after a review aimed at drawing a line under persistent doubts about the health of the region's banking sector. They will not be made public until 1100 GMT on Sunday. Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0615 GMT: LAST PCT CHG NET CHG S&P 500 1,950.82 1.23 % 23.71 NIKKEI 15291.64 1.01 % 152.68 MSCI ASIA EX-JP 472.49 -0.08 % -0.38 EUR/USD 1.2658 0.11 % 0.0014 USD/JPY 107.95 -0.28 % -0.3000 10-YR US TSY YLD 2.248 -- -0.03 10-YR BUND YLD 0.886 -- -0.01 SPOT GOLD $1,231.05 -0.07 % -$0.84 US CRUDE $81.72 -0.45 % -0.37 > GLOBAL MARKETS-US STOCK FUTURES SLIP ON NY EBOLA CASE REPORTS > US STOCKS-WALL ST GAINS ON INDUSTRIAL EARNINGS BUT ENDS OFF HIGHS > NIKKEI GAINS CAPPED BY EBOLA CASE IN NEW YORK > TREASURIES-BOND YIELDS CLIMB ON STOCK GAINS, U.S. AND OVERSEAS DATA > YEN RALLIES ON SAFE-HAVEN BIDS AFTER NEW YORK EBOLA CASE REPORTS > GOLD SLIPS, POISED FOR WEEKLY LOSS ON STRONG U.S. DATA, DOLLAR > METALS-LME COPPER SET FOR WEEKLY RISE ON SEASONAL CHINA DEMAND > BRENT SLIPS TOWARDS $86 AS NEW YORK EBOLA CASE HITS RISK APPETITE COMPANY NEWS VOLVO Global truck maker Volvo posted a surprise rise in core earnings on Friday and said it expected industry-wide heavy-duty truck sales to be flat in Europe next year while further growth was forecast for the resurgent North American market. BASF Quarterly operating earnings at BASF, the world's largest chemicals company by sales, rose 8.9 percent as a strong U.S. petrochemicals business offset weak demand in Europe. Earnings before interest and tax (EBIT), adjusted for one-off items, rose to 1.84 billion euros ($2.33 billion), ahead of the 1.74 billion euro average estimate in a Reuters poll of analysts. ERICSSON The mobile telecom gear maker posted third-quarter operating profit below expectations on Friday and said business activity in North America had slowed down. BANKIA The Spanish nationalised lender said on Thursday it had sold a loan portfolio worth 772 million euros ($976.4 million), almost all of which was comprised of non-performing loans. Separately, the bank lost an estimated 1.7 billion euros due to 11 irregular operations, mostly committed by Bancaja before the merger, Expansion reported, citing legal documents. CAIXABANK Spanish lender Caixabank on Friday posted a 1.6 percent rise in nine-month net profit from a year ago, at 466 million euros, just missing a 474 million euros forecast in a Reuters poll of six analysts. AIR LIQUIDE French industrial gases group Air Liquide confirmed on Friday its expectation that net profit would rise this year, barring a downturn in market conditions, after third-quarter sales grew 4.3 percent like-for-like. BELGACOM Belgian telecoms group on Friday raised its 2014 profit forecast after a surprise increase in the third quarter due to improved mobile income and lower costs. ESSILOR Essilor, the world's largest maker of ophthalmic lenses, stuck to its full-year revenue and margin forecasts after organic sales growth accelerated in the third quarter. AXA Europe's second-biggest insurer said a stronger euro wiped out revenue growth in the first nine months of the year, but the currency's recent depreciation is expected to bring benefits. ENI, SAIPEM Russian energy giant Rosneft is waiting to see what Eni plans to do with its 43-percent stake in Saipem before deciding whether to buy into the Italian oil services company. THALES The French aerospace and defence group reported flat nine-month revenue and 3 percent growth in orders, driven by emerging markets as European defence cuts continue to bite. SAINT-GOBAIN Europe's biggest supplier of building materials said it expected operating income to rise 5 to 10 percent this year on a like-for-like basis even after third-quarte sales fell 3.3 percent. VINCI Europe's biggest construction and concessions company reported a 7.5 percent decline in third-quarter sales but stuck to its full-year earnings guidance thanks to a resilient performance by its motorway and airport concessions businesses. UNICREDIT Unicredit is talking with a consortium comprising Fortress Investment Group FIG.N and Italy's Prelios PCRE.MI on the sale of its bad loan unit Unicredit Credit Management Bank and could soon enter exclusive talks. A source said an announcement could come on Friday. TELECOM ITALIA Telecom Italia is in advanced talks to sell the mobile phone towers of its Brazilian unit TIM Participacoes TIMP3.SA and could agree a deal in weeks, three people with direct knowledge of the situation told Reuters. ACCIONA A consortium, including Spanish builder Acciona, has been chosen as preferred bidder to extend Sydney's South East Light Rail through an estimated investment of over 1.11 billion euros. KERING Gucci's parent company posted a 4.4 percent third-quarter revenue gain and said the fashion house showed signs of turning a corner in the third quarter, even as its own sales fell. RHOEN KLINIKUM The hospital operator said on Thursday its share buyback programme had so far been accepted by shareholders holding about 6.35 percent of its basic capital. SEB The household equipment manufacturer said third-quarter revenue rose to 1.03 billion euros from 998 million euros a year earlier. NORBERT DENTRESSANGLE The freight and logistics operator said third-quarter revenue rose to 1.19 billion euros from 1.03 billion euros a year earlier. SAFT GROUPE The battery maker said third-quarter revenue rose to 156.8 million euros from 153.2 million euros a year earlier. (Reporting by Blaise Robinson; Editing by Atul Prakash)
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