Europe Factors to Watch-Shares set to rise after China data

martes 20 de enero de 2015 03:42 GYT
 

PARIS, Jan 20 (Reuters) - European stocks were set to rise on Tuesday,
tracking a rally in Asian shares after data showed China's economic growth
slowed less than feared.
    Shares in SAP will be in the spotlight after Europe's largest
software firm cut its 2017 operating profit outlook, saying its push into
cloud-based software delivery will eat into its profit margins before clearing
the way for profits to expand from 2018 onward. 
    Consumer goods giant Unilever  will also be in focus after
it reported lower-than-expected fourth-quarter underlying sales growth, as the
emerging market downturn that rocked performance earlier in the year failed to
improve. 
    China's economy grew 7.4 percent in 2014, its slowest pace in 24 years and
barely missing the country's official 7.5 percent target. But the data was seen
as a relief for investors. 
    "China had a goldilocks GDP figure for the bulls. The annual figure dipped
to 7.4 percent, just below the government's target of 7.5 percent, which
although weak, doesn't imply a total collapse yet still leaves the door open for
some more stimulus efforts," Capital Spreads trader Jonathan Sudaria wrote.
    At 0715 GMT, futures for Euro STOXX 50, for Germany's DAX 
and for France's CAC were 0.4-0.6 percent.
    Also on the macro front, the International Monetary Fund lowered its
forecast for global economic growth in 2015, and called for governments and
central banks to pursue accommodative monetary policies and structural reforms
to support growth. 
    The Greek market will be in focus on Tuesday after anti-bailout opposition
party Syriza appears to be gaining momentum with less than a week before
Sunday's election, moving further ahead of the conservatives that lead the
coalition government in two separate opinion polls. 
    European shares hit a seven-year high on Monday, as Italian banks rallied on
the prospect of a corporate governance revamp and Swiss stocks clawed back some
of last week's losses. Broader market sentiment has been supported by
expectations the European Central Bank will on Thursday unveil plans to buy
sovereign bonds to try to fight deflation and revive growth.
        
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
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  MARKET SNAPSHOT AT 0740 GMT: 
    
                                         LAST   PCT CHG  NET CHG
 NIKKEI                               17366.3    2.07 %   352.01
 MSCI ASIA EX-JP                       468.34    0.24 %      1.1
 EUR/USD                               1.1583   -0.18 %  -0.0021
 USD/JPY                               118.37     0.7 %   0.8200
 10-YR US TSY YLD                       1.819        --     0.00
 10-YR BUND YLD                         0.449        --     0.01
 SPOT GOLD                          $1,277.10    0.03 %    $0.40
 US CRUDE                              $47.32   -2.81 %    -1.37
  > GLOBAL MARKETS-ASIA RELIEVED BY CHINA GROWTH 
  > TOKYO'S NIKKEI SHARE AVERAGE CLOSES UP 2.07 PCT 
  > FOREX-DOLLAR RISES TO 1-WEEK HIGH VS YEN ON RELIEF OVER CHINA GROWTH 
  > PRECIOUS-GOLD NEAR 4-MONTH HIGH ON WORRIES OVER EUROPE, GLOBAL ECONOMY 
  > METALS-COPPER EDGES UP AFTER CHINA DATA RELIEVES MARKETS 
  > OIL MARKETS DIP ON WEAK CHINA GDP DATA 
    
    COMPANY NEWS:
    
    SAP 
    Europe's largest software firm SAP lowered its 2017 operating profit outlook
on Tuesday, saying its push into cloud-based software delivery would eat into
its profit margins. 
    
    UNILEVER  
    Consumer goods giant reported lower than expected fourth-quarter underlying
sales growth, as the emerging market downturn that rocked performance earlier in
the year failed to improve. 
    
    LUXOTTICA 
    Italian eyewear group on Monday reported a 4.6 percent rise in 2014 revenues
to 7.65 billion euros ($8.9 billion), in line with market expectations, helped
by the strength of its U.S. business. 
    
    TELEFONICA 
    Telefonica is also considering Talk-Talk and Liberty Global, aside form
Hutchinson, as possible interested parties in the acquisition of its
O2 unit in the UK, El Economista reported citing market sources. 
    
    RIO TINTO 
    Global miner Rio Tinto reported a sharp rise in quarterly iron ore output on
Tuesday amid a drive to corner a greater share of the world market, and reported
price gains at its long-pilloried aluminium division. 
    
    CREDIT SUISSE 
    The lender said the recent currency volatility following the Swiss National
Bank's surprise decision to scrap a three-year-old cap on the franc "has not
materially impacted our capital ratios". 
    
    REPSOL 
    Spanish oil group Repsol said on Monday its refining margins had jumped 41
percent in the fourth quarter from the third, while production rose 1.3 percent
in the period.
    Separately, Repsol plans to sell and leaseback its headquarters to help pay
for the recent acquisition of Canada's Talisman, Expansion reported
without citing sources.
    
    ROYAL DUTCH SHELL 
    Brazilian oil and gas company HRT Participacoes SA reached an
agreement to buy offshore assets of Royal Dutch Shell Plc in the Campos
Basin, a source with knowledge of the deal said on Monday. 
    
    WILLIAM HILL 
    Leading British bookmaker William Hill said its full 2014 operating profit
rose 11 percent to 371 million pounds ($560 million) even as fourth quarter
revenues suffered due to unfavorable football and horse racing results.
    
    

 (Reporting by Blaise Robinson; Editing by Alistair Smout)