European Factors to Watch-Shares seen down, focus on energy stocks

martes 9 de diciembre de 2014 03:36 GYT
 

LONDON, Dec 9 (Reuters) - European shares were expected to extend the
previous session's losses on Tuesday, mirroring weaker equities in the United
States and Asia, with a further drop in oil prices to a five-year low seen
hurting energy stocks.
    Brent slipped below $66 a barrel after plunging more than 4 percent the day
before on worries of a swelling supply glut. Oil is likely to remain around $65
for the next six or seven months, the chief of Kuwait's national oil company
said on Monday, in the latest sign Gulf producers are ready to ride out plunging
prices. 
    "Although lower oil prices should be a positive cue for pretty much every
other sector other than energy, it's the persistent weakness amongst the energy
shares that's overshadowing any benefits and dragging down the major indices,"
Jonathan Sudaria, a dealer at Capital Spreads, said in a note.
    Mining stocks will also be in focus after prices of ley industrial metals
fell. Shanghai aluminium plumbed its lowest level since May on Tuesday as
growing overcapacity and the shaky outlook for demand in China curbed buying,
while copper prices on the London Metal Exchange slipped 0.4 percent.
    At 0734 GMT, futures for the Euro STOXX 50, Germany's DAX 
and France's CAC were down 1.0-1.3 percent.
    The S&P 500 posted its biggest daily percentage drop since Oct. 22 on Monday
on weaker energy prices, while Japan's Nikkei share average fell on Tuesday,
snapping a seven-day winning streak, as a rebound in the yen prompted investors
to book recent gains in exporter shares. 
    The FTSEurofirst 300 index of top European shares closed 0.7
percent lower at 1,395.44 points in the previous session, having surged 1.8
percent on Friday after much better-than-expected U.S. jobs data.
    
    COMPANY NEWS

    TESCO  
    Troubled British retailer Tesco has warned on full year profit again. The
firm said that on the basis of the changes and investments made to date it now
anticipates group trading profit for the financial year ending February 2015
will not exceed 1.4 billion pounds ($2.2 billion). 
    
    JCDECAUX 
    The world's biggest outdoor advertising group, is exploring a bid for the
European advertising assets of U.S. rival Clear Channel Outdoor Holdings Inc
, according to people familiar with the matter. 
        
    SIEMENS 
    German engineering group Siemens is now targeting 30 percent more savings
from its acquisition of oilfield equipment company Dresser-Rand than previously
announced, it said in presentation slides published on its website on Tuesday.
 
    
    TOTAL 
    The French oil major agreed to sell its remaining 10.4 percent stake in Gaz
Transport & Technigaz to Singapore-based investment group Temasek. Total had
already cut its shareholding from 30 percent in February. Total said it will
have raised more than $650 million overall from the sale of the entire stake.
 
   
    ALTICE 
    The board of Brazilian telecommunications company Grupo Oi SA on
Monday approved the sale of its Portuguese assets to France's Altice SA for 7.4
billion euros ($9.1 billion).
    
    KABEL DEUTSCHLAND  
    There is a discrepancy between the price paid for German cable firm Kabel
Deutschland by Britain's Vodafone and the value of the
company, a special auditor's report on the takeover shows.
    
    AIRBUS 
    Britain and France have awarded a joint contract for maintenance of their
A400M Atlas military transport aircraft fleet to Airbus Defence and Space,
Britain's Ministry of Defence said. 
     
    BAE SYSTEMS 
    Defence contractors BAE Systems, Navantia SA and Raytheon Co will
increase their roles in Australia's A$8.5 billion ($7 billion) warship building
project as the country tries to get the troubled programme back on track.
 
    
    RBS 
    Royal Bank of Scotland is resisting plans for a restructuring of one of
Dubai's largest conglomerates, underlining the UK lender's rapid retrenchment
from an ill-fated global expansion, Sky News reported late on Monday. (bit.ly/160djI2)
    
    ASTRAZENECA, PETROFAC 
    Pharmaceutical giant AstraZeneca Plc and oil services group Petrofac Ltd are
among a raft of British companies poised to sign contracts worth up to 2 billion
pounds with Algeria this week as the countries look to cement trade links and
fight terrorism, The Independent reported. (ind.pn/12Glo2r)
    
    DEUTSCHE BANK 
    The U.S. government on Monday sued Deutsche Bank, seeking to recoup more
than $190 million from the German bank over alleged tax fraud more than 14 years
ago. 

    EURONEXT 
    Intercontinental Exchange Inc said it is selling its remaining stake
of about 6 percent in Euronext through an accelerated bookbuilding to
institutional investors. The 4.2 million shares are worth around 100 million
euros based on Monday's closing price of 24.66 euros. 
    
    KERING 
    The board of directors of the luxury and sportswear group has decided to pay
an interim dividend of 1.50 euros per share for 2014 on Jan. 26. 
        
    RENAULT 
    The French carmaker is studying the possibility of marketing its ultra
low-cost cars in Europe with production at its Moroccan site in Tangiers, Les
Echos newspaper reported.
    
    ASOS 
   Sales at the online retailer slowed in the three months to the end of
November. Asos said September and October were "challenging" but sales have
since gathered momentum and it had its biggest ever trading week over cyber
weekend in November. 
       
    BMW 
    BMW AG's supervisory board will meet on Tuesday and discuss top-level
appointments and strategy at the German carmaker, two sources told Reuters on
Monday. 
    
    VOLKSWAGEN 
    The United Auto Workers gained a partial and unconventional recognition from
Volkswagen after proving that it represents at least 45 percent of workers at
the company's plant in Chattanooga, Tennessee, a company spokesman said on
Monday. 
        
    FIAT CHRYSLER 
    Standard & Poor's confirmed on Monday its BB- long-term rating on the
company with a stable outlook and assigned a B- rating to the $2.5 billion
mandatory convertible bond Fiat Chrysler is launching.    
    
    REPSOL 
    Talisman Energy of Canada said it had been approached by a number of
parties, including Repsol, with regards to various transactions, without giving
further information. 
    
    IBERDROLA 
    The utility has aligned with Edgon of the UK to explore fracking in Britain,
El Economista reported without citing sources.  
 
------------------------------------------------------------------------------
  MARKETS SNAPSHOT AT 0648 GMT:  
                                            LAST     PCT CHG          NET CHG
 S&P 500                                2,060.31     -0.73 %           -15.06
 NIKKEI                                 17813.38     -0.68 %          -122.26
 MSCI ASIA EX-JP                          466.91     -1.16 %            -5.49
 EUR/USD                                  1.2327      0.09 %           0.0011
 USD/JPY                                  120.02     -0.54 %          -0.6500
 10-YR US TSY YLD                          2.264          --             0.01
 10-YR BUND YLD                            0.715          --             0.00
 SPOT GOLD                             $1,203.30      0.04 %            $0.50
 US CRUDE                                 $62.70     -0.56 %            -0.35
    MACROECONOMIC DATA/EVENTS (GMT)  :
    0745 FR Trade
    0930 GB Industrial Output
    1245 US ICSC Chain
    1355 US Redbook
     
  > OIL REACHES NEW DEPTHS, RUSH TO SAFETY RESCUES YEN          
  > S&P 500 POSTS WORST DAY SINCE OCT; ENERGY SHARES SINK              
  > NIKKEI RETREATS FROM 7-1/2-YR HIGH AS YEN BOUNCES                  
  > YIELD CURVE FLATTEST IN SIX YEARS AS RATE HIKE EXPECTATIONS RISE 
  > YEN BENEFITS FROM FALLING OIL PRICES; COMMODITY CURRENCIES SLIDE 
  > GOLD SLIPS AS STRONGER DOLLAR, U.S. RATE HIKE FEARS WEIGH        
  > SHANGHAI ALUMINIUM SINKS TO 7-MONTH LOW AS SUPPLY CLIMBS        
  > BRENT HITS 5-YEAR LOW BELOW $66 ON OVERSUPPLY WORRIES             
    

 (Reporting by Atul Prakash; Editing by Francesco Canepa)