Europe Factors to Watch-Shares set to fall for 4th day in a row
PARIS, Dec 11 (Reuters) - European stocks were set to fall on Thursday, losing ground for the fourth session in a row as this week's slump in oil and iron ore prices hurts resource-related shares and fuels worries over the pace of global growth. At 0727 GMT, futures for Euro STOXX 50, for Germany's DAX and for France's CAC were down 0.1-0.2 percent. Investor focus will also be on the results of the European Central Bank's loan offer to banks, expected around 1015 GMT. The ECB is offering banks the cheap, four-year loans as part of a package of measures to add around 1 trillion euros to the central bank's balance sheet in a bid to pump more money into the economy and stave off the threat of deflation. A Reuters poll of money market traders on Monday pointed to banks taking 130 billion euros on Thursday. They borrowed 82.6 billion in a first tranche in September and can take up to 400 billion in both rounds combined. "If the take-up is disappointing, there could be various reactions on stock indexes: a drop on the news, followed by a rebound as the disappointing news would spark hopes to see quantitative easing being launched in Europe earlier than what is currently expected," said John Plassard, senior sales trader at Mirabaud Securities, in Geneva. Resource-related shares were also in focus on Thursday. Brent crude ticked higher but remained below $65 per barrel, not far from a five-year low hit in the previous session, with the market's bearish tone largely intact. Iron ore fell to its weakest level in more than five years as a supply glut continued to weigh on the commodity that has nearly halved in value this year. Global miners Rio Tinto and BHP Billiton are major iron ore producers. Brent has plummeted more than 40 percent since June, forcing a number of oil services companies, including Fugro and Seadrill to scrap dividends as oil majors accelerate cost-cutting efforts. The STOXX oil and gas index, home of bellwethers such as BP, Total and Eni, has tumbled 27 percent since June. The sell-off has wiped $280 billion off market capitalisation of the sector, nearly the size of Israel's GDP. Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0727 GMT: LAST PCT CHG NET CHG S&P 500 2,026.14 -1.64 % -33.68 NIKKEI 17257.4 -0.89 % -155.18 MSCI ASIA EX-JP 462.86 -0.71 % -3.32 EUR/USD 1.2465 0.14 % 0.0018 USD/JPY 118.10 0.25 % 0.2900 10-YR US TSY YLD 2.173 -- 0.00 10-YR BUND YLD 0.678 -- 0.00 SPOT GOLD $1,222.80 -0.32 % -$3.90 US CRUDE $61.26 0.53 % 0.32 > GLOBAL MARKETS-ASIA DOWN AS OIL FALL HITS SENTIMENT > US STOCKS-INDEXES END DOWN MORE THAN 1 PCT AS ENERGY FALLS FURTHER > NIKKEI SLIPS TO 2-WEEK LOW ON STRONG YEN AND OIL PRICE DROP > FOREX-DOLLAR GETS RESPITE VS YEN; KIWI RISES AFTER RBNZ > PRECIOUS-GOLD CLIMBS TOWARDS 7-WK HIGH AS DOLLAR, EQUITIES SLIDE > METALS-DOLLAR DROP EASES PRESSURE ON METALS > BRENT EDGES UP TOWARD $65, BUT SAUDI STANCE ON OUTPUT CURBS GAINS COMPANY NEWS: INDITEX Zara owner Inditex said on Thursday its nine-month net profit rose 0.8 percent to 1.69 billion euros ($2.1 billion) broadly in line with expectations after a warm start to autumn and negative currency effects. WHITBREAD The owner of Premier Inn hotels and Costa Coffee, said it was on track to meet full-year expectations after it posted a 6 percent rise in third-quarter underlying sales. BUNZL British business supplies distributor Bunzl reaffirmed its expectation of a 6 percent rise in full-year revenue on Thursday, helped by like-for-like growth in all its business areas. SPORTS DIRECT Britain's biggest sporting goods retailer, said it was confident of at least reaching its full-year profit target, as it posted an 11 percent rise in first half earnings on Thursday. AIRBUS On the second day of its investor presentation, the focus for the planemaker will be on the outlook for the A330 and the slow-selling A380 after a disappointing 2016 outlook on Wednesday. Its shares slid 10.4 percent on Wednesday after it predicted flat profits in 2016, surprising investors who had expected new and recently upgraded models to start boosting results that year. DEUTSCHE BANK, BARCLAYS The New York banking regulator is investigating if Deutsche Bank and Barclays used algorithms on their trading platforms to manipulate foreign exchange rates, a source with direct knowledge of the matter told Reuters. SBM OFFSHORE The oil platform leasing firm announced a restructuring and establishment of new headquarters. It said it was in the process of releasing about 600 contractor staff and an equal number of permanent staff, totalling approximately 1,200 positions worldwide, over the period 2014 and 2015. DANONE The French food group will hold a board meeting on Thursday to discuss whether to keep or sell its medical nutrition business, a person familiar with the matter said. Potential buyers include injectable medicine specialist Hospira and a group led by Fresenius. ORANGE, NUMERICABLE-SFR, BOUYGUES, ILIAD France plans to award a new batch of mobile telecoms network licences in December 2015 after holding an auction that the government hopes will raise more than 2 billion euros ($2.49 billion). NESTLE Nestle will announce plans to open 10 skin care research centers worldwide, deepening its investment in a faster-growing market for healthcare products. DAIMLER, VOLKSWAGEN RENAULT A European Union law agreed late on Wednesday to make trucks safer and more aerodynamic, cutting fuel bills, emissions and improving safety, will be delayed by around five years after the industry pushed for more time to develop new vehicles. (Reporting by Blaise Robinson; Editing by Alistair Smout)
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