European Factors to Watch-Shares set to extend rally; ZEW eyed
PARIS, Nov 18 (Reuters) - European stocks were set to rise on Tuesday, adding to the previous session's rally sparked by comments from ECB President Mario Draghi that raised the prospects of further stimulus steps. Investors were also betting on Germany's ZEW survey for November, due at 1000 GMT, to start showing some signs of a stabilisation and reverse 10 straight months of declines. At 0730 GMT, futures for Euro STOXX 50, for Germany's DAX and for France's CAC were up 0.1-0.2 percent. Draghi said on Monday the ECB stimulus is gaining traction but should it turn out that its current efforts are not sufficient to accelerate the euro zone recovery, the central bank is ready to do more. "Investors took yesterday's comments to mean that the ECB was a step closer to full blown QE," CMC market analyst Michael Hewson said in a note. The airline sector will be in focus after easyJet reported a 21.5 percent jump in annual profit, prompting it to raise its dividend. The food and beverage sector will also be in the spotlight after Danish brewer Carlsberg said it will buy Greece's third largest brewer Olympic Brewery. Energy shares will be in focus again as Brent crude slipped below $79 a barrel, heading for its sixth daily fall in seven as oil prices struggle to find a floor ahead of next week's critical OPEC meeting. Wall Street inched higher on Monday, helped by M&A activity, while Tokyo shares rebounded on Tuesday on expectations that Japan will opt for a snap election that may lead to fresh stimulus measures. Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0730 GMT: LAST PCT CHG NET CHG S&P 500 2,041.32 0.07 % 1.5 NIKKEI 17344.06 2.18 % 370.26 MSCI ASIA EX-JP 475.71 -0.29 % -1.36 EUR/USD 1.2484 0.28 % 0.0035 USD/JPY 116.61 -0.03 % -0.0300 10-YR US TSY YLD 2.333 -- -0.01 10-YR BUND YLD 0.798 -- 0.00 SPOT GOLD $1,191.40 0.43 % $5.16 US CRUDE $75.30 -0.45 % -0.34 > GLOBAL MARKETS-NIKKEI UP AFTER U.S. MEGADEALS, DOLLAR STEADY > US STOCKS-S&P 500 ENDS AT RECORD HIGH; MERGERS OFFSET JAPAN RECESSION > TOKYO'S NIKKEI SHARE AVERAGE CLOSES UP 2.18 PCT > FOREX-DOLLAR SUPPORTED BY ECB TALK, JAPAN ELECTION SPECULATION > GOLD HOLDS BELOW 2-WK HIGH ON ROBUST DOLLAR, U.S. ECONOMY > LONDON COPPER SLIPS FROM 2-WEEK HIGH AFTER BEARISH CHINESE DATA > BRENT SLIPS BELOW $79 AS RHETORIC HEATS UP BEFORE OPEC MEETING COMPANY NEWS: EASYJET The British low-cost airline reported a 21.5 percent jump in annual profit, in line with its expectations, prompting it to raise its dividend, as it guided that forward bookings were slightly ahead for the winter season. CARLSBERG Danish brewer Carlsberg said it will strengthen its position in Greece significantly through a merger with the country's third largest brewer Olympic Brewery. BALFOUR BEATTY The troubled British infrastructure group said it had made progress towards addressing the management issues around its UK construction business, as it reaffirmed its profit outlook for the full year. BRITISH LAND COMPANY PLC Britain's second-largest listed property developer reported on Tuesday a 11.8 percent rise in half-year net asset value, enjoying the benefits of London's commercial property boom. ASTRAZENECA the firm, determined to show it has a strong independent future after seeing off a $118 billion bid from Pfizer in May, said it had made good progress in developing a pipeline of new drugs. SMITHS GROUP The firm kept its year view unchanged, and said it sees a reverse in forex headwind. SANOFI Sanofi and Regeneron's experimental drug alirocumab helped 10 times as many high-risk patients unable to tolerate widely-used statins get their "bad" LDL cholesterol down to target levels than Merck & Co's Zetia, according to data from a clinical trial presented on Monday. Separately, Sanofi will hold a board meeting by telephone on Tuesday from 1100 GMT to 1200 GMT, two sources close to the French drugmaker told Reuters. The board is set to discuss Sanofi's situation and governance after it summarily ousted its chief executive Chris Viehbacher last month. LAFARGE, HOLCIM Swiss cement maker Holcim said on Tuesday it had received competition clearance for its planned merger with France's Lafarge from seven jurisdictions, and that other clearances are expected between end-November and end- February. MICHELIN The European tyre market for new cars and light trucks grew 3 percent in October, Michelin said. The market for replacement tyres however shrunk by 7 percent, largely because of lower demand for winter tyres given the unseasonably mild weather across the continent, it said. NOVARTIS An experimental heart failure medicine from the Swiss drugmaker that previously showed it reduced death and hospitalizations also curtailed worsening of symptoms, need for additional therapy and emergency room visits, adding to evidence that it will become the drug of choice once approved. EVS The Belgian broadcast equipment maker said it saw a slowdown in the broadcast industry since August, after the soccer World Cup and the Commonwealth Games boosted profits in the third quarter. DEUTSCHE BANK Germany's top lender said on Monday it aims to sell further so-called Additional Tier 1 (AT1) bonds as part of a plan to fortify its capital reserves as regulatory pressures mount on global banks. BOUYGUES Bouygues Construction said on Tuesday it won a 147 million euros ($183.34 million)contract for the separation of the red and green lines of the 28 May station of the Baku subway in Azerbaijan. EIFFAGE, VINCI France's cash-strapped government is seeking to revamp contracts with motorway operators which it considers too generous, but its room for manoeuvre is thin. AIR LIQUIDE The industrial gases group said it would develop and supply a network of 12 hydrogen fueling stations in the northeast of the United States in collaboration with Toyota, which is working to launch a new hydrogen fuel cell electric vehicle (FCEV) there. INTERPARFUMS The French cosmetics group confirmed its 2014 target for a 12 percent rise in sales to 280 million euros at constant scope and for an operating margin of around 10-11 percent of sales. ROYAL IMTECH NV The Dutch engineering and construction firm posted a smaller net loss and cut debt in the third quarter, despite taking a hit due to restructuring, advisory and financing costs. (Reporting by Blaise Robinson; Editing by Alistair Smout)
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