Europe Factors to Watch-Shares seen steady; energy stocks eyed

viernes 28 de noviembre de 2014 03:17 GYT
 

PARIS, Nov 28 (Reuters) - European stocks were seen steady on Friday,
pausing after a five-session winning streak, while a further drop in crude oil
prices was set to keep the pressure on energy shares.
    At 0714 GMT, futures for Euro STOXX 50, for Germany's DAX 
and for France's CAC were down 0.1 percent to up 0.1 percent.
    Brent crude was down $1.1 to below $72 a barrel on Friday, adding to
the previous session's plunge after OPEC decided not to cut oil output to
support prices which came after Saudi Arabia blocked calls from poorer members
of the Organization of the Petroleum Exporting Countries for output reductions.
Brent has tumbled nearly 40 percent since June.
    Saudi Arabia and OPEC had "relinquished" their role to balance the market
from the supply side, Societe Generale analysts said in a note on Friday.
    "Instead, the market itself - prices, in other words - will be the mechanism
to rebalance the market. We cannot overstate what a dramatic and fundamental
change this is for the oil market," the analysts said.
    The European energy sector index, home of oil majors such as BP
, Royal Dutch Shell and Total, has fallen 20 percent in
the past five months.
    On the positive side, a survey of Japan-based fund managers, polled between
Nov. 17 and 21, showed on Friday allocations to euro zone equities increased to
17.3 percent in November from 13.8 percent in October, amid expectations of more
stimulus from the European Central Bank. 
    Mining shares will be eyed on Friday after Rio Tinto said it
deferred plans to build a $1 billion mine in Australia, stepping up cost cuts
amid a plunge in iron ore prices so it can deliver on a vow to boost returns to
shareholders. 
    Nathan Tinkler, the former mining magnate who lost his fortune because of a
slump in coal prices, expects global mining companies such as BHP Billiton
 and Rio Tinto to put their coal assets up for sale. Prices of
coal and iron ore have tumbled to multi-year lows this year, with oversupply
smothering more moderate demand growth. 
    
    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
 NIKKEI                              17459.85    1.23 %   211.35
 MSCI ASIA EX-JP                       478.65   -0.47 %    -2.25
 EUR/USD                               1.2458   -0.06 %  -0.0008
 USD/JPY                               118.13    0.38 %   0.4500
 10-YR US TSY YLD                       2.204        --    -0.03
 10-YR BUND YLD                         0.701        --    -0.01
 SPOT GOLD                          $1,187.90   -0.28 %   -$3.35
 US CRUDE                              $68.15   -7.52 %    -5.54
 
  > GLOBAL MARKETS-ASIAN SHARES WITHER AS OPEC'S RESTRAINT HITS OIL 
  > TOKYO'S NIKKEI SHARE AVERAGE CLOSES UP 1.23 PCT 
  > FOREX-DOLLAR FIRMS AS OIL PLUNGES HIT COMMODITY CURRENCIES 
  > GOLD EXTENDS LOSSES TO THIRD DAY AS OIL SLUMPS 
  > LME COPPER HITS 8-MONTH LOW UNDER $6,500; TRACKS OIL 
  > BRENT NEAR 4-YR LOW AFTER OPEC DECIDES AGAINST OUTPUT CUT 
    
    COMPANY NEWS:
    
    RIO TINTO 
    The global miner said it deferred plans to build a $1 billion mine in
Australia, stepping up cost cuts amid a plunge in iron ore prices so it can
deliver on a vow to boost returns to shareholders. 
    
    MINING SECTOR
    Nathan Tinkler, the former mining magnate who lost his fortune because of a
slump in coal prices, expects global mining companies such as BHP Billiton
 and Rio Tinto to put their coal assets up for sale. Prices of
coal and iron ore have tumbled to multi-year lows this year, with oversupply
smothering more moderate demand growth. 
    
    DEUTSCHE TELEKOM, BT 
    Hutchison Whampoa, the owner of Britain's fourth largest mobile
operator 3 Group, is preparing a bid for EE or O2, the mobile groups already in
talks on a deal with BT Group, several sources familiar with the matter
said. 
    
    E.ON 
    Germany's top utility E.ON SE is on the brink of a deal to sell its Spanish
activities for 2.5 billion euro ($3.12 billion) to Australian infrastructure
investor Macquarie Group Ltd and a Kuwaiti state fund, the Wall Street
Journal Deutschland reported on Thursday. 
    
    VIVENDI, NUMERICABLE 
    French media group Vivendi closed the sale of mobile carrier SFR to domestic
cable company Numericable for 13.37 billion euros and pledged to use some of the
proceeds to cut debt. 
    
    CLUB MEDITERRANEE 
    The French holiday operator, at the center of long-running takeover saga,
said on Friday the full year 2013/14 operating profit of its resorts fell 4.8
percent while it posted a net loss of 9 million euros, hit by weaker demand in
Europe and Africa and resort closures. 
    
    L'OREAL, NESTLE 
    The cosmetics giant will end its Inneov nutritional supplement joint venture
with Nestle, both companies announced. 
    
    NOVARTIS 
    Italy's pharmaceutical watchdog AIFA suspended two batches of anti-flu
vaccine FLUAD made by Switzerland's Novartis NOVN.VX on Thursday, saying three
deaths potentially connected to the drug had been reported. 
    

 (Reporting by Blaise Robinson; additional reporting by Keith Wallis in
Singapore)