Europe Factors to Watch-Shares set to extend rally on ECB boost

viernes 23 de enero de 2015 03:15 GYT
 

PARIS, Jan 23 (Reuters) - European stocks were set to rise on Friday,
extending their new-year rally as investors cheered the European Central Bank's
decision to buy government bonds in a bid to revive the region's economy and
stave off deflation.
    At 0707 GMT, futures for Euro STOXX 50, for Germany's DAX 
and for France's CAC were up 0.6-1.1 percent.
    European energy shares will be in focus on Friday as oil prices rose on news
of the death of Saudi Arabia's King Abdullah. Brent crude futures were
up 1.6 percent at $49.31 a barrel. 
    The telecom sector will also be in the spotlight after Li Ka-shing's
Hutchison Whampoa Ltd agreed to buy Telefonica's British
mobile unit O2 for up to 10.25 billion pounds ($15.4 billion). 
    On Thursday, ECB President Mario Draghi said the central bank would embark
on quantitative easing - printing money to buy government bonds. Together with
existing schemes, the programme will pump 60 billion euros a month into the euro
zone economy from this March until at least September next year.
    Renault Nissan  Chief Executive Carlos Ghosn upgraded his
European car market growth forecast after the ECB unveiled its QE programme.
Ghosn told participants at the Davos World Economic Forum that he now expects
Europe's car market to grow by at least 2 percent in 2015, against 1-2 percent
previously. 
    The FTSEurofirst 300 index of top European shares surged 1.6
percent on Thursday, hitting a seven-year high. The benchmark index has gained
6.2 percent so far this year, outperforming Wall Street, where the S&P 500
 is up 0.2 percent in 2015.
    Europe's outperformance over the United States is expected to continue in
2015. European equities are ripe for a catch-up rally after years of
underperformance. 
            
------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0711 GMT: 
                                         LAST   PCT CHG  NET CHG
 S&P 500                             2,063.15    1.53 %    31.03
 NIKKEI                              17511.75    1.05 %   182.73
 MSCI ASIA EX-JP                       480.68    0.92 %     4.36
 EUR/USD                               1.1334   -0.27 %  -0.0031
 USD/JPY                               118.30   -0.15 %  -0.1800
 10-YR US TSY YLD                       1.853        --    -0.04
 10-YR BUND YLD                         0.435        --    -0.02
 SPOT GOLD                          $1,296.10   -0.38 %   -$4.88
 US CRUDE                              $46.99    1.47 %     0.68
  > GLOBAL MARKETS-ASIA STOCKS UP ON ECB BOOST, EURO NEAR 11-YR LOW 
  > US STOCKS-WALL ST GAINS AS ECB PREPARES TO FLOOD MARKETS 
  > TOKYO'S NIKKEI SHARE AVERAGE CLOSES UP 1.05 PCT 
  > U.S. TREASURY YIELDS FALL AFTER ECB ANNOUNCES BOND PURCHASES 
  > EURO HITS FRESH 11-YEAR LOW IN WAKE OF ECB'S QE LAUNCH 
  > GOLD NEAR 5-MONTH TOP AFTER ECB BOOST, EYES 3RD WEEKLY GAIN 
  > METALS-COPPER'S REBOUND FROM 2009 LOWS FIZZLES ON DIM CHINA OUTLOOK 
  > OIL JUMPS AS SAUDI KING'S DEATH FEEDS MARKET UNCERTAINTY 
    
    COMPANY NEWS:
    
    TELEFONICA, BT 
    Li Ka-shing's Hutchison Whampoa Ltd has agreed to buy Telefonica's
British mobile unit O2 for up to 10.25 billion pounds ($15.4 billion), as Asia's
richest man makes his boldest bet yet to revamp his European telecoms business.
 
    
    RENAULT, EUROPEAN CARMAKERS
    Renault Nissan Chief Executive Carlos Ghosn upgraded his European
car market growth forecast on Thursday after the European Central Bank unveiled
a bond purchase programme to boost the continent's flagging economy. 
    
    ITALIAN COOPERATIVE BANKS
    An association representing Italian cooperative or popolari banks vowed on
Thursday to do everything possible to block government's decree that aims to
change their shareholder voting rules. 
    
    INTESA SANPAOLO 
    The bank is not interested in buying any of the Popolari banks in Italy,
including Monte dei Paschi di Siena, the FT said citing Intesa CEO Carlo
Messina. Messina said the bank had 16 billion euros in excess capital but could
face pressure to return it to shareholders rather than spend it on a deal, FT
said.
    
    UBS 
    UBS said it did not suffer any overall losses in its trading business after
the Swiss National Bank's (SNB) decision last week to abandon its three-year-old
cap on the franc. 
    
    NOVARTIS 
    Novartis will review its Swiss cost base after the country's central bank
scrapped a cap on the franc last week, sending the currency soaring, the Swiss
drugmaker's chief executive said. 
    
    TOD'S 
    Italian luxury shoemaker Tod's reported on Thursday sales of 965.6 million
euros ($1.1 billion), broadly in line with last year as declines in sales at its
Tod's and Hogan brands were offset by an increase at Roger Vivier. 
    
    THYSSENKRUPP 
    ThyssenKrupp will have to pay a fine of about 100 million euros for delays
in supplying submarines to Turkey, the Handelsblatt business daily reported.
 
    
    THALES 
    French defence electronics group Thales TCFP.PA warned on Friday that losses
at its naval defence and energy unit DCNS could shave around 100 million euros
off Thales's 2014 earnings before interest and taxes (EBIT). 
    
    SANOFI 
    European pharmaceuticals group Sanofi on Thursday said it had agreed to pay
4.44 million euros ($5.06 million) in total to ousted chief executive Chris
Viehbacher. 
    
    NH HOTELES 
    UBS said on Thursday it was placing a 7.6 percent stake in NH owned by
Intesa Sanpaolo.

 (Reporting by Blaise Robinson; Editing by Francesco Canepa)