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