Europe Factors to Watch-Shares set to halt pull-back; Repsol eyed

martes 16 de diciembre de 2014 03:28 GYT
 

PARIS, Dec 16 (Reuters) - European shares were seen steady on Tuesday,
halting their week-long sell-off, with Repsol in focus after the
Spanish oil firm said it will launch a takeover bid for Canada's Talisman Energy
 worth $8.3 billion. 
    A sharp drop in oil prices since June has dragged down valuations for oil
producers and oil services companies and sparked the biggest consolidation wave
in the sector on records going back to the 1970s, according to Thomson Reuters
data. 
    European shares tumbled on Monday, adding to last week's sharp sell-off as
the relentless drop in oil prices hurt energy shares and fuelled fears of
deflation in the euro zone.
    The broad STOXX 600 has dropped 7.9 percent in the past six
sessions, representing a wipeout in market capitalisation of roughly $710
billion, nearly the size of Saudi Arabia's annual GDP.
    However, futures for Euro STOXX 50, for Germany's DAX and
for France's CAC were flat to up 0.1 percent on Tuesday at 0721 GMT.
    "Don't be fooled in to thinking this is a sign of a reversal in sentiment
and bargain hunters stepping up to the plate, it's probably more to do with
shorts booking some profits following the 7-9 percent slumps we've seen in the
major European indices over the last week," Capital Spreads trader Jonathan
Sudaria wrote in a note.
    "Equities seem to be inextricably tied to oil prices now and with OPEC
saying they are comfortable with $40 a barrel, it looks like there could be a
lot more pain ahead for the bulls."
    Companies with a strong exposure to the Russian economy such as Austrian
lender Raiffeisen Bank International and Danish brewer Carlsberg
 will be in the spotlight on Tuesday, after Russia's central bank
raised its key interest rate to 17 percent from 10.5 percent in an emergency
move to halt a collapse in the rouble as the economy slides toward recession.
 
    On the macro front, investors were rattled by downbeat macro data from China
on Tuesday. The flash HSBC/Markit manufacturing purchasing managers' index (PMI)
fell to 49.5 in December, below the 50.0 reading forecast by analysts,
signalling that activity in China's factory sector shrank for the first time in
seven months. 
    The Bank of England said on Tuesday Britain's main banks would be able to
withstand a sharp fall in house prices, other than the troubled Co-operative
Bank. State-backed RBS and Lloyds only scraped through the
BoE's first sector-wide test of the health of major lenders. 
    
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
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  MARKET SNAPSHOT AT 0721 GMT: 
                                         LAST   PCT CHG  NET CHG
 S&P 500                             1,989.63   -0.63 %    -12.7
 NIKKEI                              16755.32   -2.01 %  -344.08
 MSCI ASIA EX-JP                       453.36   -0.71 %    -3.24
 EUR/USD                               1.2459    0.18 %   0.0023
 USD/JPY                               117.26   -0.46 %  -0.5400
 10-YR US TSY YLD                       2.110        --    -0.01
 10-YR BUND YLD                         0.632        --     0.00
 SPOT GOLD                          $1,197.51    0.44 %    $5.30
 US CRUDE                              $55.38   -0.95 %    -0.53
    
  > GLOBAL MARKETS-ROUBLE JUMPS ON RUSSIA RATE HIKE, OIL PRESSURED 
  > US STOCKS-WALL ST DIPS IN VOLATILE TRADE; OIL PRICES FALL FURTHER 
  > TOKYO'S NIKKEI SHARE AVERAGE CLOSES DOWN 2.01 PCT 
  > FOREX-YEN FIRM AS OIL SLUMP CURBS RISK APPETITE, ROUBLE REBOUNDS 
  > PRECIOUS-GOLD EDGES UP AFTER WORST DAY IN A YEAR, FED EYED 
  > METALS-LONDON COPPER MIRED NEAR 1-WEEK LOWS ON CHINA WORRIES 
  > OIL PRICES FALL, STUMBLING EMERGING MARKETS DENT OUTLOOK 
    
    COMPANY NEWS:
    
    REPSOL 
    Spanish oil firm Repsol on Tuesday said it would launch a takeover offer for
100 percent of Talisman Energy shares worth $8.3 billion. 
    
    METRO 
    German retailer Metro AG said it expected "satisfactory" Christmas trading
despite a slow start to the season in its home market after it reported
quarterly operating profit ahead of expectations. 
    
    CARLSBERG 
    Chief Executive Jorgen Buhl Rasmussen told daily Jyllands-Posten analysts
have priced in too much discount on the brewer's stock related to its Russian
business. Rasmussen said the share price did not reflect the value of the
business in Russia and repeated that though the Russian market was under
pressure now, this was likely to change in future. 
    
    ORANGE 
    Britain's BT has entered into exclusive talks with Orange and
Deutsche Telekom to buy EE for 12.5 billion pounds, opting for the
country's biggest mobile operator over rival suitor, Telefonica's O2.
 
    
    DANONE 
    Ratings agency S&P revised its outlook on the dairy group to negative from
stable, saying its current debt leverage combined with potentially challenging
operating conditions in some markets, as well as integration risks in
conjunction with in-fill acquisitions in emerging markets, could weigh on its
intermediate financial risk profile and 'A-' rating. 
    
    LAFARGE 
    European Union antitrust regulators approved the proposed merger of France's
Lafarge and Swiss peer Holcim to create the world's biggest cement
maker. 
    
    FIAT CHRYSLER AUTOMOBILES 
    The auto group has resumed exports from Brazil to Mexico after a more than
three-year hiatus due to weak Brazilian demand and a more favorable exchange
rate, Cledorvino Belini, chief executive officer in Latin America, said on
Monday. 
    
    TOTAL 
    Environmental permit delays are likely to set back the Brazilian offshore
drilling activities of the French oil company by about a year, a senior
executive said. 
    
    TODS, SALVATORE FERRAGAMO 
    Bad relations between the EU and Moscow have helped cut exports of Italian
shoes to Russia by around a fifth, the sector said in a letter to the bloc's
foreign policy chief, urging consideration of economic effects before more
sanctions are imposed. 
    
    DEUTSCHE BOERSE 
    The exchange operator said on Monday that it increased its stake in
Tradegate to almost 15 percent.
    Separately, the two options exchanges run by International Securities
Exchange Holdings, the New York-based unit of Deutsche Boerse AG, were halted on
Monday following connectivity issues, leading several U.S. options exchanges to
declare "self-help" against them. Self-help occurs when an exchange is dealing
with internal problems processing trades and needs to send orders through
alternate venues.
    
    ADP 
    The French airport operator said Paris airport traffic rose 2 percent in
November to 6.8 million passengers. 
        
    JCDECAUX 
    The outdoor ad group signed a deal to buy, in partnership
with community-owned investment company Royal Bafokeng
Holdings, Continental Outdoor Media, which it called the leader in outdoor
advertising in Africa. 
    
    DEUTSCHE TELEKOM 
    Britain's BT BT.L has entered exclusive talks with the owners of EE for a
potential 12.5 billion-pound ($19.6 billion) acquisition deal to give the former
UK state telecoms firm the top position in mobile as well as fixed line
broadband services. 

 (Reporting by Blaise Robinson; Editing by Atul Prakash)