Europe Factors to Watch-Shares set to drop after bullish Fed

jueves 29 de enero de 2015 03:35 GYT
 

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)