Europe Factors to Watch-Shares set to bounce back, helped by earnings
PARIS Nov 5 (Reuters) - European stocks were set to rise on Wednesday, reversing most of the previous session's losses, as a raft of positive results from companies including Alstom and Lundin Petroleum help lift sentiment.
At 0725 GMT, futures for Euro STOXX 50, for UK's FTSE 100, for Germany's DAX and for France's CAC were up 0.5-0.9 percent.
European shares fell on Tuesday, with the FTSEurofirst 300 index of top European shares losing 1 percent, after Reuters reported that central bankers in the euro area planned to challenge European Central Bank chief Mario Draghi over his secretive management style.
On the earnings front on Wednesday, French power and engineering group Alstom said it expects "high single-digit" percentage growth in full-year sales and positive operating free cash flow after revenue rose 13 percent in the first half of its fiscal year.
German reinsurer Hannover Re said its net profit rose by a forecast-beating 21 percent to 251 million euros ($315 million) in the third quarter, as premium and investment income growth exceeded expectations.
About half way into Europe's earnings season, 64 percent of companies managed to meet or beat profit forecasts, and 59 percent met or beat revenue forecasts, according to Thomson Reuters StarMine data.
In absolute terms, profits are up 13 percent, while revenues are down 0.2 percent, highlighting the fact that Europe's earnings rebound has mostly been coming from cost-cutting and lower financing costs.
A dip in the euro on Wednesday, hovering around a 2-year low against the dollar, was also seen as positive for Europe's profit outlook.
The dollar and U.S. stock futures pushed higher on Wednesday after Republicans scored a sweeping victory in U.S. mid-term elections, fuelling hopes for an end to political gridlock in Washington. Continuación...