Europe Factors to Watch-Shares set to extend Monday's dip
PARIS, Nov 4 (Reuters) - European stocks were set to dip on Tuesday, adding to the previous session's losses, with resource-related shares in focus as iron ore dropped to near its weakest level since 2009 and Brent crude slipped towards $84 a barrel. Shares in carmakers will be in focus after Germany's BMW AG said its third-quarter operating profit rose 17 percent, ahead of forecasts. Also on the earnings front, L'Oreal will be in the spotlight after the world's biggest cosmetics group saw sales growth in the third quarter slump to its lowest level since 2009, a drop the company attributed to weak trading at its mass-market products division, particularly in Western Europe. Half way into Europe's earnings season, 65 percent of companies managed to meet or beat profit forecasts, and 57 percent met or beat revenue forecasts, according to Thomson Reuters StarMine data. In absolute terms, profits are up 12.2 percent, while revenues are down 0.7 percent, highlighting the fact that Europe's earnings rebound has mostly been coming from cost-cutting and lower financing costs. At 0713 GMT, futures for Euro STOXX 50, for UK's FTSE 100, for Germany's DAX and for France's CAC were down 0.1-0.2 percent. Mining stocks such as Rio Tinto and BHP Billiton will be in focus as iron ore lost ground again and looked poised for further losses as a supply glut kept the pressure on the commodity that has fallen 42 percent this year, hitting the shares of London-listed mining groups. Major oil groups and oil services companies will also be eyed as Brent crude slipped towards $84 a barrel, extending losses to a fourth session after top oil exporter Saudi Arabia cut prices to the United States. European shares fell on Monday, with the FTSEurofirst 300 index of top European shares losing 0.9 percent, as disappointing global macro data prompted investors to book recent lofty gains. Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0715 GMT: LAST PCT CHG NET CHG S&P 500 2,017.81 -0.01 % -0.24 NIKKEI 16862.47 2.73 % 448.71 MSCI ASIA EX-JP 482.3 -0.12 % -0.56 EUR/USD 1.2507 0.2 % 0.0025 USD/JPY 113.57 -0.4 % -0.4600 10-YR US TSY YLD 2.339 -- -0.01 10-YR BUND YLD 0.844 -- -0.02 SPOT GOLD $1,165.20 0.03 % $0.32 US CRUDE $77.70 -1.37 % -1.08 > GLOBAL MARKETS-ASIA DIPS AS JAPAN OUTPERFORMS > US STOCKS-DOW, S&P 500 CLOSE SLIGHTLY LOWER; SEMIS BOOST NASDAQ > NIKKEI SOARS; BOJ EASING, GPIF REALLOCATION HEARTENS INVESTORS > TREASURIES-U.S. YIELDS RISE ON UPBEAT U.S. FACTORY DATA > FOREX -DOLLAR TAKES BREATHER VS YEN AFTER BOJ-INSPIRED RALLY > PRECIOUS-GOLD STRUGGLES NEAR 4-YEAR LOW AS DOLLAR STRENGTH WEIGHS > METALS-LONDON COPPER HOLDS GROUND ON MIXED FACTORY GROWTH > BRENT EDGES DOWN TOWARDS $84 AS SAUDI'S US PRICE CUTS WEIGH COMPANY NEWS: L'OREAL The world's biggest cosmetics group saw sales growth in the third quarter slump to its lowest level since 2009, a drop the company attributed to weak trading at its mass-market products division, particularly in Western Europe. BMW AG The German luxury carmaker said its third-quarter operating profit rose 17 percent, ahead of forecasts. CONTINENTAL German car parts and tyre maker said its profit margin could slightly beat targets this year as core European auto markets keep growing. FRESENIUS German healthcare group said third-quarter adjusted net income edged up 4 percent as additional earnings from the purchase of new hospitals were tempered by higher borrowing costs. SECURITAS Swedish security firm posted on Tuesday a bigger rise than expected in third-quarter core profit and said an expected staff cost increase due to a U.S. health care reform would be lower than previously seen. DSM Dutch food and chemicals group earned lower profits in the third quarter, in line with expectations, as currency effects and lower volumes hit its key nutrition business, the company said on Tuesday. HUGO BOSS German fashion house trimmed its 2014 sales and profit outlook on Tuesday due to the slowing European economy even as it reported third-quarter sales rose faster than expected. SANOFI Sanofi Pasteur said the detailed results of a final Phase III study of its experimental dengue vaccine had been published in The New England Journal of Medicine. The company restated that it aimed to sell the first batches of the vaccine in the second half of 2015. MONTE DEI PASCHI DI SIENA NIT Holdings Limited has proposed a 10 billion euro investment in the troubled bank, according to a statement from an Italian public relations firm on Monday, but a spokesman for the lender said it had not received any proposal. TOTAL Total returned the 175,000 barrel per day crude distillation unit to production on Sunday at its 225,000 bpd Port Arthur, Texas, refinery, sources familiar with operations at the refinery said on Monday. TELEFONICA /TELECOM ITALIA : Brazilian telecommunications provider Oi SA said on Monday it has not entered into any agreement to join a group of rivals to buy Telecom Italia SpA's stake in Brazilian phone company TIM Participacoes SA . SABADELL Spain's "bad bank", which houses soured property loans and housing taken off bailed-out lenders during the crisis, on Monday said it was outsourcing the management of some assets to a company owned by Banco Sabadell. METRO Metro's consumer electronics business aims to grow annual sales at its online retailer Redcoon to 1 billion euros, daily Handelsblatt cited Peter Haas, deputy chief executive of Media-Saturn, Metro's consumer electronics business, as saying. LAURENT-PERRIER The champagne group said its chief financial officer Etienne Auriau was leaving the company "and will shortly take up new duties with an independent France pharmaceuticals and dermo-cosmetics company." A successor to Auriau is being recruited and will be announced within the next few weeks, the group said. TECHNIP The French oil services group said it had won a contract to design an ethane cracker for a petrochemical complex project in West Virginia, USA. BPOST The Belgian postal group slightly upgraded its full-year domestic mail forecast on Monday after a lower than expected decline in deliveries in the third quarter. (Reporting by Blaise Robinson; Editing by Sudip Kar-Gupta)
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