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