Europe Factors to Watch-Shares set to drop after bullish Fed
PARIS, Jan 29 (Reuters) - European stocks were set to fall on Thursday after the U.S. Federal Reserve took an upbeat view on the U.S. economy and signalled that it remains firmly on track to raise interest rates this year. At 0727 GMT, futures for Euro STOXX 50, for Germany's DAX and for France's CAC were down 0.5-1.1 percent. The Fed said the U.S. economy was expanding "at a solid pace" with strong job gains. It repeated it would be "patient" in deciding when to raise benchmark borrowing costs from zero, though it also acknowledged a decline in certain inflation measures. The statement took investors by surprise, sparking a sell-off on Wall Street, with The Dow Jones industrial average falling 1.1 percent, the S&P 500 dropping 1.4 percent and the Nasdaq Composite losing 0.9 percent. "This sent U.S. markets into a tailspin because for traders who are now addicted to accommodative monetary policy, even 'patient' is deemed to be hawkish," Capital Spreads trader Jonathan Sudaria wrote in a note. "The Fed's commitment to at least begin normalising rates at some point is enough to get traders heading for the exit, without central bank morphine the pain is just too great." Banking stocks will be in focus after Deutsche Bank posted a surprise quarterly pre-tax profit, helped by an unexpected drop in litigation costs and an upswing in trading revenues at its investment bank. Greek shares will remain in the spotlight following Wednesday's 9 percent drop on Athens's ATG index. Leftist Greek Prime Minister Alexis Tsipras threw down an open challenge to international creditors on Wednesday by halting privatisation plans agreed under the country's bailout deal. ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0733 GMT: LAST PCT CHG NET CHG S&P 500 2,002.16 -1.35 % -27.39 NIKKEI 17606.22 -1.06 % -189.51 MSCI ASIA EX-JP 477.22 -1.04 % -5.01 EUR/USD 1.1285 -0.01 % -0.0001 USD/JPY 117.65 0.1 % 0.1200 10-YR US TSY YLD 1.733 -- 0.01 10-YR BUND YLD 0.342 -- -0.01 SPOT GOLD $1,279.96 -0.34 % -$4.39 US CRUDE $44.40 -0.11 % -0.05 > GLOBAL MARKETS-SHARES DIP; BULLISH FED TAKE INVESTORS BY SURPRISE > US STOCKS-WALL ST ENDS LOWER AFTER FED STATEMENT, OIL DROP > NIKKEI POSTS BIGGEST DROP IN 2 WEEKS AFTER FED, DISMAL EARNINGS > U.S. TIPS BREAKEVEN RATES FALL AS FED EYES LOWER INFLATION > FOREX-NZ DOLLAR DENTED BY DOVISH CENBANK, USD FIRM POST-FED > PRECIOUS-GOLD RETREATS AS FED'S UPBEAT OUTLOOK BOOSTS DOLLAR > LONDON METALS SINK AFTER FED CONFIRMS RATE HIKE PLAN THIS YEAR > OIL NEAR SIX-YEAR LOWS AFTER U.S. STOCKPILES HIT RECORD HIGH COMPANY NEWS: DEUTSCHE BANK The lender posted a surprise pre-tax profit of 253 million euros in the last quarter of 2014, helped by an unexpected drop in litigation costs and an upswing in trading revenues at its investment bank. ROYAL DUTCH SHELL The oil major said it would lower its capital investment in 2015 and curtail overall spending by a total of $15 billion over the next 3 years in response to lower oil prices. LONMIN South Africa's Lonmin, the world's third-largest platinum producer, said it would maintain its annual production target but cut capital expenditure in 2015 as it battles with low metal prices. BANKS A federal judge on Wednesday said U.S. investors may pursue a nationwide antitrust lawsuit accusing 12 major banks, including UBS and Credit Suisse, of rigging prices in the $5.3 trillion-a-day foreign exchange market. NOKIA Finland's Nokia on Thursday reported stronger-than-expected quarterly profits for its core network equipment business on the back of network roll-outs for faster 4G mobile services in North America. INFINEON Auto and industrial chipmaker on Thursday raised its full-year revenues and profit forecast after reporting better-than-expected quarterly results. FITA CHRYSLER AUTOMOBILES The company expects to turn profits in all regions this year, but faces pressure to rev up its North American profit engine to fund an ambitious overhaul of its Alfa Romeo and Maserati brands. WACKER CHEMIE German specialty chemicals maker said its core profit rose by 14 percent in the fourth quarter, helped by a recovery in prices and demand for polysilicon, a key material it supplies to the solar industry. VALLOUREC Vallourec unveiled an impairment charge of 1-1.2 billion euros ($2.48 billion) on the carrying value of its assets due to the recent turmoil in the oil markets, which it said would have a one-off impact on net income for 2014. THE LONDON STOCK EXCHANGE GROUP The company plans to put Russell Investments up for sale in mid-February and hopes to fetch around $1.4 billion for the unit, two sources told Reuters on Wednesday. THYSSENKRUPP ThyssenKrupp is in talks to sell its stainless steel maker VDM, German daily Sueddeutsche Zeitung reported on Thursday, citing no sources. It said Aperam APAM.LU had good chances of winning the bid, but financial investors were also interested. GLENCORE The world's largest exporter of thermal coal is considering closing some of its South African coal mines and laying off workers due to deteriorating market conditions and falling prices. TELIASONERA The Swedish telecom operator predicted flat core earnings this year as it posted fourth-quarter core profit below market expectations on Thursday, topping off a year where like-for-like sales dropped by 1.8 percent. SEB Swedish banking group reported fourth-quarter operating earnings just below forecasts on Thursday and raised its dividend less than expected. GIVAUDAN The fragrance and flavour maker confirmed its mid-term guidance after net profit rose 15 percent last year, helped by an improved operating performance and stable financial expenses. NOVARTIS, GLAXOSMITHKLINE The European Commission on Wednesday approved a plan by Novartis and GlaxoSmithKline to trade more than $20 billion worth of assets, part of a reshaping of the drug industry at a time of healthcare spending cuts and more competition. UNIBAIL-RODAMCO The property group said recurring earnings are expected to reach 10.15 euros to 10.35 euros per share in 2015 and that it will propose a dividend of 9.60 euros per share in cash for 2014. ALSTOM British prosecutors are investigating whether subsidiaries of Alstom, the French power and transport company at the centre of an international corruption inquiry, committed offences in Hungary, a London court heard on Wednesday. FIMALAC French holding company Fimalac said 2014 revenue reached 112 million euros against 67.8 million in 2013. GAMELOFT The video game company said FY 2014 revenue was 227.3 million euros ($257.69 million), down 3 percent from a year ago. It kept its outlook for FY 2014 current operating expenses unchanged at about 230 million euros. CREDIT AGRICOLE The shareholders of French gas transport and storage company TIGF said on Wednesday they had agreed to sell a 10 percent stake in the business to Credit Agricole Assurances for more than 180 million euros. (Reporting by Blaise Robinson; Editing by Atul Prakash)
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