European Factors to Watch-Shares seen opening broadly higher

jueves 29 de octubre de 2015 03:32 GYT

(Adds futures prices, company news)
    LONDON, Oct 29 (Reuters) - European shares were expected to open broadly
higher on Thursday, tracking strong gains in the United States after the Federal
Reserve gave a vote of confidence in the U.S. economy by signaling the
possibility of a December rate hike. 
    The Fed kept interest rates unchanged on Wednesday and in a direct reference
to its next policy meeting put a December rate hike firmly in play.
    But the Fed also did not mention global conditions. When it held policy
steady last month, the central bank expressed concern that a slowing global
economy could threaten the U.S. outlook.
    "Quite why U.S. markets had such a miraculous turnaround is up for debate,
with less than plausible explanations ranging from short covering to traders
being comfortable with a 0.25 percent hike," Jonathan Sudaria, dealer at London
Capital Group, said in a note.
    "More likely however, despite (Fed Chair) Janet Yellen bringing a December
rate hike back into the realm of possibility and dropping the warning on global
risk, looking at the continuing weakening data from not only the U.S. but around
the globe, no one really believes there'll be a hike in December."
    Futures on the euro zone's Euro STOXX 50, Germany's DAX and
France's CAC were up 0.3 to 0.4 percent by 0730 GMT. However, futures on
Britain's FTSE 100 fell 0.2 percent. 
    The commodity-heavy FTSE 100 index is expected to be dragged down by mining
stocks as metals price fell on a stronger dollar. The U.S. currency rose on
increased prospects of a U.S. rate hike this year.
    The company reported a sharp drop in third-quarter profits on the back of
low oil prices and a hefty $8.2 billion charge which included write-offs in
Alaska and Canada. 
    Deutsche Bank said it would scrap its 2015 and 2016 dividends and outlined
new financial targets for 2018. The bank is due to present details of how it
intends to achieve the targets and Q3 numbers at 0800 GMT. 
    Deutsche Bank is expected to settle a sanctions violations case for at least
$200 million, The New York Times reported. 
    The British bank took a 560 million pound ($855 million) hit to compensate
customers mis-sold foreign exchange products and to cover a U.S. mortgages
settlement, as it reported a 10 percent drop in quarterly profits.
    The world's No. 3 network equipment maker reported stronger-than-expected
profits as growth in China offset weaker demand in North America and Europe, and
announced a new shareholder return plan. 
    Britain's BT, riding high after receiving the go-ahead to buy mobile
operator EE on Wednesday, edged market expectations with a 2 percent rise in
second-quarter revenue on an underlying basis, helped by new TV customers.
    The drugmaker reported stronger third-quarter profit as rising sales at
biotech arm Genzyme and in animal health compensated for a fall in revenue from
diabetes drugs, its main business. It forecast global diabetes sales over the
period 2015-2018 would decline at an average annualised rate of 4-8 percent at
constant exchange rates. 
    Sanofi also said it was voluntarily recalling all its Auvi-Q injections in
the United States to treat patients with severe allergic reactions.
    The oil and gas company's net adjusted profit tumbled 23 percent to $2.756
billion in the third quarter compared with the same period a year ago, hit by a
sharp fall in global oil prices. 
    The drugmaker saw underlying core earnings gain 28 percent in the third
quarter, bolstered by sales of new drugs and the purchase of Merck & Co's
 consumer health business. 
    The world's second largest reinsurer posted an unexpected year-on-year rise
in third-quarter net profit. 
    German airline Lufthansa lifted its profit target for 2015 on Thursday,
after a strong summer and cheaper fuel costs but warned more of price pressure
ahead and said action needed to be taken on costs. 
    The telecoms equipment maker posted a net loss in the third quarter despite
higher revenues from its core networking products, adding that larger rival
Nokia's plan to buy it was on track to complete in the first quarter.
    Italian oil and gas group Eni said on Thursday it had swung to a net loss in
the third quarter due to weaker oil prices and the poor performance of its oil
contracting subsidiary Saipem. 
    The airline posted a sharper-than-expected increase in third-quarter
profits, but warned unions that the gains from improved demand over the summer
would not remove the "overwhelming need" for cost cuts to keep pace with rivals.
    The euro zone's biggest bank posted a near 5 percent rise in net profit in
the third quarter from a year ago, though it said depreciating currencies in key
markets such as Brazil were dragging on earnings. 
    Testing and inspections company SGS SA is targeting an adjusted operating
margin of at least 18 percent by the end of the 2016-2020 period as it
accelerates acquisitions in hopes of adding 1 billion Swiss francs ($1.01
billion) in revenue, it said. For more, click on 
    Denmark's Novo Nordisk said it saw mid to high single-digit percent growth
in sales and operating profit in local currencies next year, outlining its
preliminary forecasts for 2016. 
    The dental implants company confirmed its full-year outlook while reporting
nine-month group revenue climbed 12 percent in Swiss francs (9 pct organic, 18
pct in local currencies) to 585 million Swiss francs ($589 million), including
46 million francs from Neodent.  For more click on 
    The electrical components and energy management group forecast a slight fall
in full-year revenue on an organic basis and a moderate decline in its adjusted
operating margin as it wrestles with a "challenging environment".
    The waste and water group kept its 2015 targets after nine-month revenue and
sales rose. 
    The digital security company said third-quarter revenue grew 23 percent as
sales rose at its payment and identity business and its acquisition of
U.S.-based SafeNet boosted demand from the United States. 
    The IT services company kept its 2015 targets after it recorded new orders
of 2.499 billion euros in the third quarter. 
    The French oil services company posted a better-than-expected rise in
third-quarter revenue and a profits boost, thanks to increased subsea activities
and despite prolonged low oil prices. 
    Vigorous trading in volatile financial markets boosted revenue at German
exchange operator Deutsche Boerse DB1Gn.DE in the third quarter, contributing to
a stronger-than-expected 21 percent rise in operating profit. 
    Seprately, China's foreign exchange trading operator and Germany's Deutsche
Boerse signed an agreement to establish a joint venture in Germany, with each
side holding a 50 percent stake, the China Foreign Exchange Trade System said on
    Deutsche Post slashed its 2015 operating profit target for the second time
this year on Wednesday, taking a 345 million-euro ($376 million) hit from a
troubled revamp of IT systems at its freight division. 
    China and Germany signed a deal that will see Chinese airlines buy 30 A330
    Jean-Marie Sander tells Les Echos that he will resign as chairman of the
board on Nov. 4 and will propose that Dominique Lefebvre replace him. Sander had
already said at the annual general meeting in May that he would leave by the end
of the year. 
    Merging video game providers Ubisoft  and Gameloft is not on the agenda,
Yves Guillemot, head and co-founder of Ubisoft told Les Echos newspaper in an
    The company said nine-month sales rose 0.4 percent on an organic basis to
29.8 billion euros. 
                                              LAST     PCT CHG   NET CHG
 S&P 500                                  2,090.35      1.18 %     24.46
 NIKKEI                                   18935.71      0.17 %     32.69
 MSCI ASIA EX-JP                             424.3      -1.1 %     -4.74
 EUR/USD                                    1.0939      0.17 %    0.0019
 USD/JPY                                    120.76     -0.25 %   -0.3000
 10-YR US TSY YLD                            2.089          --      0.00
 10-YR BUND YLD                              0.469          --      0.02
 SPOT GOLD                               $1,161.15      0.47 %     $5.45
 US CRUDE                                   $45.71      -0.5 %     -0.23
  > Asia stocks slip, dlr strong as Fed opens door to Dec hike 
  > Wall St climbs as Fed puts Dec rate hike in play 
  > Nikkei edges up in choppy trade ahead of BOJ meeting 
  > U.S. bond prices fall as Fed keeps door open on rate hike 
  > Dollar at 2-1/2-month high after Fed brings Dec rate hike into view 
  > Gold near 2-week low as Fed puts December rate hike in play 
  > London copper slips on U.S. Dec rate hike view 
  > Crude oil futures hold gains after Fed sits pat on rates 

 (Reporting by Atul Prakash)