European Factors to Watch-Shares seen flat as rate-cut effect fades
(Adds index futures, more company news items)
MILAN Oct 26 (Reuters) - European shares were seen opening little changed on Monday, with a rate-cut effect seen as fading slightly in Europe after markets rallied to two-month highs on Friday on signs of more central bank support.
Futures for the euro zone's blue-chip Euro STOXX 50 index, France's CAC and Britain's FTSE were all down by between 0.1-0.3 percent, while Germany's DAX futures edged up 0.1 percent.
Earnings season was in full swing, with carmaker Peugeot posting a 3.2 percent increase in quarterly revenue helped by recovering European demand.
Technology group Philips reported better-than-expected quarterly profits on cost cutting and strong orders for its U.S. healthcare business, but said the sale of its Lumileds division, worth $3.3 billion, is in doubt..
Eyes will also be on Germany's Ifo business climate sentiment for October, with any further deterioration seen adding reasons for the ECB to act.
On Friday, European equities rose to two-month highs as China announced a surprise rate cut just a day after the European Central Bank signalled the possibility of stronger stimulus measures.
The pan-European FTSEurofirst 300 index rose 1.95 percent and the euro zone's blue-chip Euro STOXX 50 index advanced 2.17 percent.