May 18, 2016 / 6:42 AM / 2 years ago

European Factors to Watch-Equity futures fall on renewed U.S. rate hike prospect

(ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets for site in development. See the bottom of the report)

LONDON, May 18 (Reuters) - European equity futures fell on Wednesday, tracking losses on Asian and U.S. stock markets that were caused by renewed expectations that the U.S. Federal Reserve could raise rates later this year.

Futures on the Euro STOXX 50, Germany’s DAX, France’s CAC and Britain’s FTSE were all down between 0.4-0.6 percent, with investment bank Goldman Sachs cutting its view on global equities to “neutral”.

On Tuesday, data showed that U.S. consumer prices recorded their biggest increase in more than three years in April, pointing to a steady inflation build-up that could give the Federal Reserve ammunition to raise interest rates later this year.

A U.S. Federal Reserve policymaker also said on Tuesday that he would push for an interest rate hike in June or July while two others still saw up to three rate increases this year, leaving the door open to a change in monetary policy relatively soon, and that backdrop hit the Wall Street stock market.


The Paris airport operator said passenger traffic was up 4.1 percent in April.


ARM announced the acquisition of Apical for $350 million.


AstraZeneca said its Lynparza plus paclitaxel product had disappointed in tests.


The head of exploration at BP, Richard Herbert, is leaving the British oil major after slightly more than two years in the job, a period in which the company slashed spending on the search for new deposits.


British luxury fashion group Burberry BBRY.L said it would overhaul its retail operations and simplify its product range after its full-year profit fell 10 percent.


Qatar Airways has raised its stake in British Airways-owner International Consolidated Airlines Group (IAG) to 15.01 percent and may consider acquiring more of the company over time, the airline said Tuesday.


Chinese home appliances maker Midea Group on Wednesday made an offer of 115 euros per share for German industrial robot maker Kuka AG .


Novartis is splitting its pharmaceuticals division into two business units, one focused on cancer and the second on other drugs, while switching out its current pharma head in the second high-profile management reshuffle this year. Shares in the company were seen opening up 1.6 percent, according to pre-market indications.


SABMiller reported lower annual profits.


United Parcel Service Inc, the world’s largest package delivery company, said on Wednesday it will expand the 3D printing services provided through its UPS Stores to create an on-demand manufacturing network starting this summer. Atlanta-based UPS and SAP SE also announced a partnership in which Europe’s largest software company will provide supply chain solutions to help manufacturers get products to market more quickly and at a lower cost.

——————————————————————————————————————— > GLOBAL MARKETS-Revived U.S. rate hike views weigh on Asian shares; oil up > US STOCKS-Wall St sells off amid Fed rate hike jitters > Nikkei reverses course, falls on stronger yen > TREASURIES-Short-dated yields near 3-week high as data opens door to rate hike > FOREX-Yen gains after upbeat Japan GDP pares stimulus bets > METALS-London copper slips as dollar stays strong on US rate hike view > Oil prices remain near 2016 highs on global supply disruptions

ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). In a real-time, multimedia format from 0600 London time through the 1630 closing bell, it will include the best of our market reporting, Stocks Buzz service, Eikon graphics, Reuters pictures, eye-catching research and market zeitgeist. Breaking news and dramatic market moves will continue to be alerted to all clients and we will continue to provide a short opening story and comprehensive closing reports.

If you have any thoughts, suggestions or feedback on this, please email

Mike Dolan, Markets Editor EMEA. (Reporting by Sudip Kar-Gupta)

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