European Factors to Watch-Shares seen up on cautious Fed minutes

viernes 9 de octubre de 2015 02:57 GYT
 

(Updates futures prices, adds company news)
    LONDON, Oct 9 (Reuters) - European shares headed for a higher open on
Friday, tracking gains on Wall Street and in Asia, after minutes of the Federal
Reserve's recent policy meeting suggested that authorities were not in a hurry
to raise interest rates.
    The minutes showed the U.S. central bank thought the economy was close to
warranting a rate hike but decided it was prudent to wait for evidence a global
economic slowdown was not knocking the United States off course. 
    "European equities are set to rally as central banks give into the bulls'
demands for dovish monetary policy to rescue them from their current plight,"
London Capital Group said in a note. "The fed minutes underlined the global
economic slowdown and the potential to threaten the U.S economic outlook."
    Commodity stocks were expected to rise sharply as zinc prices jumped
more than 6 percent after trader and miner Glencore said it would slash
its annual output by a third. Prices of other major industrial metals 
  and crude oil surged between 1.5 percent and 2.8
percent. 
    Futures for the euro zone's blue-chip Euro STOXX 50 index,
Britain's FTSE 100, Germany's DAX and France's CAC were
up 0.7 to 1.0 percent by 0657 GMT.
    In the United States, the S&P 500 index rose 0.9 percent on Thursday
to close at a seven-week high, while Japan's Nikkei jumped 1.5 percent
on Friday.
    The pan-European FTSEurofirst 300 index ended 0.3 percent higher in
the previous session, with the market closing before the Fed minutes. The index
headed for its biggest weekly percentage gain since mid-July after falling in
the previous three weeks in a row.
    On the earnings front, Alcoa reported a smaller-than-expected
quarterly profit, hurt by slumping prices for aluminum and other commodities and
unfavorable foreign exchange rates. 
    
    COMPANY NEWS
 
    VOLKSWAGEN 
    The Australian unit of VW said it will conduct a voluntary recall of
vehicles fitted with devices designed to mask the level of emissions, as it
increased the estimated number of affected cars to nearly 100,000.
 
    Separately, Volkwagen's U.S. chief executive told lawmakers on Thursday that
cheating on emissions with the use of software in diesel cars was not a
corporate decision, but something that "individuals did." 
    The U.S. Environmental Protection Agency said VW is expected next week to
provide U.S. and California regulators with a preliminary attempt at a software
fix for the defeat devices it installed in 2012-2014 Passats. 
    
    GLENCORE 
    Commodities giant Glencore said it will cut 500,000 tonnes of zinc
production, or around 4 percent of global supply, in its latest move to
withstand weak commodities prices. 
    
    ALLIANZ 
    Billionaire bond investor Bill Gross sued his former employer Pacific
Investment Management Co and its parent Allianz for $200 million, saying a
greedy "cabal" of executives drove him out of the bond fund giant he helped
found because they wanted his huge bonus for themselves. 
    
    DEUTSCHE BANK 
    JP Morgan is one of several banks in talks to buy a credit default
swap portfolio from Deutsche Bank valued at more than $250 billion, Business
Insider reported, citing people familiar with the matter. 
    Separately, a former senior trader at Deutsche Bank pleaded guilty on
Thursday to engaging in a scheme to manipulate Libor, the benchmark interest
rate at the center of global investigations involving various banks, the U.S.
Justice Department said. 
    
    GIVAUDAN 
    Swiss flavours and fragrance maker Givaudan on Friday maintained its
financial targets for the five years ending 2015 as currency effects erased
gains made in the first nine months. 
    
    THYSSENKRUPP 
    German Chancellor Angela Merkel promoted Germany's submarines during her
visit to India and there is a good chance that ThyssenKrupp Marine Systems could
win a deal, Focus magazine reported, citing government sources.
    
    LONDON STOCK EXCHANGE GROUP - The company said it would sell Frank
Russell Company's asset management business to U.S. private equity firm TA
Associates for gross proceeds of about $1.15 billion. 
    
    EDF 
    The French energy group's CEO Jean-Bernard Levy said Italy will remain a key
country for the group and the state-controlled utility wants to keep majority
control of its Italian unit Edison. 
    
    ROCHE 
    Roche's big new drug hope ocrelizumab cut multiple sclerosis relapses by
nearly 50 percent compared with the older product Rebif in two large clinical
trials, underscoring its potential in the main relapsing form of the disease.
 
    
    ANHEUSER-BUSCH INBEV, SABMILLER 
    Anheuser-Busch InBev Chief Executive Carlos Brito repeated his appeal to
SABMiller shareholders on Thursday, again urging them to push the brewer's board
into more serious takeover discussions. 
    
    CREDIT SUISSE 
    After the Financial Times on Thursday reported that Credit Suisse was
planning to tap investors for a "substantial" capital raising, the Swiss bank
said it was still evaluating strategic options as well as its capital usage and
requirements. 
    
    NORSK HYDRO 
    Norway's Norsk Hydro has signed a letter of intent with Brazilian mining
company Vale for the possible acquisition of Vale's 40-percent
interest in Brazilian bauxite producer Mineracao Rio do Norte (MRN), the company
said on Friday. 
    
    PUBLICIS 
    The French advertising group said its ZenithOptimedia was acquiring
performance marketing agency Frubis. 
    
    FAGRON 
    Belgium's Fagron, which makes custom medicines for pharmacies and hospitals,
said on Friday its revenue, adjusted for acquisitions, fell in the third quarter
of 2015, as a change in U.S. reimbursement policies weighed on its results.
 
    
    AIR FRANCE KLM 
    An union at Air France has called for a meeting with other unions at the
airline on Tuesday to decide whether to go ahead with strike plans, its head
Miguel Fortea said. 
         
    AIXTRON 
    The microchip equipment maker aims to continue its push to diversify beyond
chips for light-emitting diodes (LED) to return to profit and eyes a gross
margin of 30-35 percent, its Chief Executive Martin Goetzeler told
Boersen-Zeitung in an interview.
    
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   MARKET SNAPSHOT AT 0520 GMT: 
 S&P 500                               2,013.43    0.88 %       17.6
 NIKKEI                                18394.48     1.4 %     253.31
 MSCI ASIA EX-JP                            426    1.85 %       7.74
 EUR/USD                                 1.1285    0.06 %     0.0007
 USD/JPY                                 119.98    0.06 %     0.0700
 10-YR US TSY YLD                         2.095        --      -0.01
 10-YR BUND YLD                           0.593        --       0.00
 SPOT GOLD                            $1,146.96    0.74 %      $8.40
 US CRUDE                                $50.50    2.16 %       1.07
  > Asia stocks shine as Fed minutes hint at patience on hike 
  > Wall St rises after release of 'dovish' Fed minutes 
  > Nikkei up on cautious Fed minutes 
  > U.S. bond prices fall as Fed minutes pare bids 
  > Dollar stung by Fed minutes, Aussie and Asia FX shine 
  > Gold ticks up on dovish Fed minutes, set for weekly gain 
  > London zinc jumps after Glencore cuts production 
  > Crude oil futures rise after bullish forecast, Fed minutes 
    

 (Reporting by Atul Prakash)