Europe Factors to Watch-Shares set to rally ahead of ECB

lunes 19 de enero de 2015 03:16 GYT
 

PARIS, Jan 19 (Reuters) - European stocks were set to rise on Monday, adding
to last week's strong gains, on mounting expectations the European Central Bank
is about to embark into a bond buying programme to support the euro zone
economy.
    At 0712 GMT, futures for Euro STOXX 50, for Germany's DAX 
and for France's CAC were up 0.2-0.3 percent.
    Expectations the ECB will soon start printing money through quantitative
easing have been fuelling a rally in European shares in the past two weeks, with
Germany's DAX hitting a record high on Friday. The central bank is set
to meet on Thursday.
    "The market debate on ECB QE has shifted from 'if' to 'how', with the focus
increasingly on the operational details of the programme," BNP Paribas analyst
Luigi Speranza wrote in a note.
    "ECB comments suggest that a final decision on the most controversial
aspects of the programme, such as its size and the allocation of risk, has not
yet been taken. We think it increasingly likely that the ECB will leave at least
some risk with the national central banks, rather than mutualise it."
    Shares in Europe's resource-related firms will be in focus as China is
expected to report on Tuesday that economic growth slowed to 7.2 percent in the
fourth quarter, the weakest since the global financial crisis, a Reuters poll
showed. 
    
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
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  MARKET SNAPSHOT AT 0712 GMT: 
                                         LAST   PCT CHG  NET CHG
 S&P 500                             2,019.42    1.34 %    26.75
 NIKKEI                              17014.29    0.89 %   150.13
 MSCI ASIA EX-JP                       466.92   -0.34 %    -1.57
 EUR/USD                               1.1577    0.09 %   0.0010
 USD/JPY                               117.08   -0.45 %  -0.5300
 10-YR US TSY YLD                       1.831        --     0.00
 10-YR BUND YLD                         0.461        --     0.00
 SPOT GOLD                          $1,275.30   -0.35 %   -$4.51
 US CRUDE                              $48.65   -0.08 %    -0.04
   
  > GLOBAL MARKETS-CHINA SHARES RETREAT; ECB CALL LOOMS LARGE 
  > US STOCKS-WALL ST RALLIES AFTER 5 DOWN DAYS; ENDS DOWN FOR WEEK 
  > TOKYO'S NIKKEI SHARE AVERAGE CLOSES UP 0.89 PCT 
  > TREASURIES-U.S. BOND PRICES FALL AS DATA SPARK PROFIT-TAKING 
  > EURO STAYS ON EDGE AS CRUCIAL ECB MEETING LOOMS 
  > GOLD NEAR 4-MONTH HIGH ON FUND INFLOWS, SAFE-HAVEN BIDS 
  > LONDON COPPER CLIMBS OFF 5-1/2 YR LOWS; CHINA, ECB IN FOCUS 
  > OIL PRICES DIP ON GLOOMY CHINESE, EUROPEAN OUTLOOK 
    
    COMPANY NEWS:
    
    CREDIT SUISSE 
    Credit Suisse said on Sunday it planned to start charging institutional and
large corporate clients for Swiss franc accounts following a move by the Swiss
National Bank to introduce negative interest rates. 
    
    JULIUS BAER 
    Julius Baer said on Monday that it hadn't suffered any losses in the two
days following a shock decision by the Swiss National Bank to abandon a
three-year-old cap on the franc. 
    
    HEIDELBERGCEMENT 
    Cheap oil will reduce costs at HeidelbergCement, a spokesman told Euro am
Sonntag magazine. "We will benefit noticeably from the low price of oil in
2015," the spokesman said. 
    
    FINMECCANICA 
    China's Insigma will tell Finmeccanica on Monday its binding offer for the
Italian group's transportation units AnsaldoBreda and Ansaldo STS, which expired
on January 15, will be extended a further 30 days to mid-February, Il Sole 24
Ore said Saturday, citing Insigma chairwoman Li Chwen Pan. 
    
    FIAT CHRYSLER AUTOMOBILES 
    The group said in a presentation made to investors on Saturday and posted on
its website the industry outlook in every region was positive. It said
investments would increase to a peak in 2016 "to support the heavy cadence of
new/refreshed product programs." 
    
    ABENGOA 
    Spanish renewable energy firm Abengoa, which is selling assets to cut debt,
said late on Friday it had raised $328 million from selling shares in its U.S.
unit after banks underwriting the offer bought more of the stock. 
    
    TELEFONICA 
    Hutchison Whampoa, owner of Britain's fourth-largest mobile
operator Three, is in talks with Telefonica about buying its O2 network, the
Sunday Times reported, citing unnamed city sources. 
    
    MERCK 
    The world's largest maker of liquid crystals for display screens avoids a
multibillion-dollar premium on the purchase price for Sigma-Aldrich 
thanks to a currency hedging, German daily Frankfurter Allgemeine Zeitung said
on Monday. 
    
    SCHINDLER 
    The group said it expects to achieve a full-year net profit of roughly 900
million Swiss francs ($1.05 billion), topping its outlook of 815 million to 865
million francs, mainly due to a strong result from financing activities. The
elevator and escalator manufacturer said its fourth-quarter was as expected.
 

 (Reporting by Blaise Robinson; Editing by Atul Prakash)