June 3, 2016 / 5:41 AM / 2 years ago

European Factors to Watch-Shares seen higher, focus on U.S. jobs

(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, June 3 (Reuters) - European shares headed for a higher open on Friday, mirroring gains on Wall Street and in Asia, with investors’ focus shifting to U.S. jobs data later in the session for hints about the market’s direction in the short term.

Futures for the Euro STOXX 50, Germany’s DAX, France’s CAC and Britain’s FTSE were 0.2 to 0.4 percent higher by 0652 GMT.

Asian shares also advanced as investors looked to widely-followed U.S. employment report that could add to or detract from the case for a Federal Reserve interest rate hike this month or in July.

Nonfarm payrolls probably increased by 164,000 jobs in May after rising by 160,000 in April, according to a Reuters survey of economists. The jobless rate is forecast slipping one-tenth of a percentage point to 4.9 percent.

The U.S. central bank has signaled its intention to raise rates soon if job gains continue and economic data remain consistent with a pickup in growth in the second quarter.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.5 percent, while Japan’s Nikkei gained 0.4 percent.


Accor shares were seen opening 2 to 5 percent higher on a report saying that China’s Jin Jiang was planning to increase its stake in the French hotel group.


Bayer, which has made a $62 billion bid for U.S. seeds company Monsanto Co, has secured a 60 billion euros ($67 billion) loan facility that can be expanded up to 75 billion euros, Handelsblatt daily reported on Thursday.


Deutsche Bank was among eight financial services firms have paid the FDIC $190 million to settle claims they misled five U.S. banks into buying risky mortgage securities from the former Countrywide Financial Corp, contributing to the banks’ failures.

Separately, two former traders with Deutsche Bank, one in New York and another in London, have been indicted for conspiring to manipulate the benchmark Libor interest rate, the U.S. Justice Department said on Thursday.


Investors pulled approximately $1 billion from the Pimco Total Return Fund in May following cash withdrawals of the same amount the previous month, the Newport Beach, California-based firm said on Thursday.


Pan-European exchange Euronext said on Friday that seven new companies had joined its markets in May, adding that it had seen improved market conditions for listings. Euronext said initial public offerings in May included Philips Lighting BV LIGHT.AS in Amsterdam, the largest IPO in Europe year-to-date, raising capital worth 750 million euros.


Lufthansa is set for a good year and summer bookings have not disappointed, the chief executive of the airline said on Thursday.

Also, the chief executive of Brussels Airlines told an industry conference that he is hopeful German airline group Lufthansa LHAG.DE will acquire the part of the Belgian carrier which it does not yet own.


French oil and gas firm Total said on Thursday it plans to restart its 220,000 barrels-per-day Donges refinery after 94 percent of the plant’s workers voted to resume work.


ArcelorMittal, the world’s largest steelmaker, is suspending a major expansion of its Mont-Wright iron ore mine in northern Quebec due to poor market conditions, a spokesman said on Thursday.


French car parts supplier Valeo said on Thursday it would buy German clutch manufacturer FTE Automotive for 819.3 million euros ($914 mln).


The European Aviation Safety Authority temporarily grounded Airbus AS332 L2 and EC225 LP Super Puma helicopters following the discovery of metal fatigue in the gear box of a Super Puma craft that fatally crashed in Norway on April 29.


French tycoon Vincent Bollore said in a newspaper interview published on Friday that media group Vivendi does not need to make any big acquisitions as it has all the assets it needs to challenge the industry’s dominant players.


Le Figaro reports that French government and AccorHotels management want to prevent China’s Jin Jiang taking over control of French hotel group.


The oil major agreed on Thursday to pay $175 million to shareholders who brought a class-action lawsuit that accused the oil company of misleading them by understating the severity of the 2010 oil spill in the Gulf of Mexico. BP said the claims will be paid during 2016-2017.


Air France’s pilot unions have called on members to strike during the first week of the Euro 2016 soccer championship in a protest over pay, although the airline’s chief executive said fans could just drive or take the train.


Credit rating agency Fitch affirmed Volkswagen AG at BBB+, outlook negative, reflecting the emissions scandal.


Heavy truck orders (Class 8) in North America, a key market for the Swedish truck maker, fell 31 percent year-on-year to 14,300 units in May, preliminary figures from ACT Research showed on Friday.


The Danish drug maker reported late on Thursday positive results for Saxenda for weight loss.


The Danish company and France’s Rusal announced on Friday a long-term cooperation.


The shareholders of Middle East container shipping group United Arab Shipping Company (UASC) back the company’s merger talks with Hapag-Lloyd although there has not yet been a vote to approve a deal, UASC said on Thursday.


Sartorius said it would implement a stock split on June 13 to encourage trading in its shares.

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@thomsonreuters.com.

Mike Dolan, Markets Editor EMEA.

Reporting by Atul Prakash

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