June 14, 2016 / 5:36 AM / 2 years ago

European Factors to Watch-Shares seen extending losses

(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 14 (Reuters) - European shares headed for a fifth straight session of losses on Tuesday, mirroring falls on Wall Street and in Asia, on growing jitters before the Federal Reserve’s meeting and next week’s referendum in Britain on its membership of the European Union.

Two opinion polls published by ICM showed on Monday that Britain’s “Out” campaign had widened its lead over the “In” camp ahead of the June 23 referendum.

Uncertainty over this week’s two-day Fed meeting, starting later in the day, has also weighed on markets, though the U.S. central bank is widely expected to leave rates unchanged after the much weaker-than-expected May nonfarm payrolls report.

Futures for the Euro STOXX 50, Germany’s DAX, France’s CAC and Britain’s FTSE were 0.7 to 1.2 percent lower.

European shares fell to their lowest level in more than three months on Monday, hit by a sell-off in cyclical stocks and widespread unease in markets over a possible British exit from the European Union.

The pan-European FTSEurofirst 300 index closed 1.9 percent lower after hitting its lowest since late February and extending the previous session’s 2.3 percent drop. The STOXX Europe 600 ended 1.8 percent lower, while Italy’s FTSE MIB closed down 2.9 percent.

U.S. shares closed 0.7 to 0.9 percent lower on Monday, while MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.4 percent on Tuesday.


Premier Farnell shares were expected to open around 45 percent hgiher after Daetwyler Holding said it has agreed to buy Premier Farnell > in an all-cash offer that valued the British electronic component distributor at just over 1 billion Swiss francs ($1.04 billion).


Danone, the world’s largest yoghurt maker, raised its 2016 earnings guidance thanks to growth in emerging markets, notably in China.


Private investment company Ardian and Credit Agricole Assurances have signed an agreement with Vinci to acquire its 24.6 percent stake in parking operator Indigo, which will be 49.2 percent owned by Ardian Infrastructure and 49.2 percent by Credit Agricole Assurances.


Ashtead Group announced on Tuesday a share buyback of up to 200 million pounds ($284 million) for the current financial year, after strong North American growth helped the industrial equipment hire group post a rise in full-year profit.


The French investment firm succesfully repurchased its 2017, 2018 and 2019 bond issues under its tender offer up to a maximum amount of 400 million euros ($451.72 million). Wendel’s total amount of undrawn credit lines is now 1.15 billion euros, with maturities extending from November 2019 to March 2020.


China’s Midea Group Co Ltd is only seeking a 49 percent stake in the industrial robot maker, Handelsblatt reported on Monday, citing unnamed sources in the German government.


The French credit insurer appointed Thibault Surer, 54, head of strategy and business development, and also a member of the group’s management and executive committees.


The Swedish telecoms equipment-maker plans to lay off 3,000-4,000 employees later this summer and considers laying off thousands more in a bid to cut costs, newspaper Svenska Dagbladet (SvD) reported on Tuesday, quoting anonymous sources.


The Danish pharmaceutical company’s top-selling diabetes drug Victoza cut the risk of heart attack, stroke and cardiovascular death by 13 percent in a closely watched study that may help boost sales of the injectable medicine.


The French real estate investment and development company completeda 210 million-euro ($237.15 million) capital increase, with a subscription rate of 131 percent.


Brazilian iron ore miner Vale SA said on Monday that a 20 billion reais ($5.7 billion) civil lawsuit seeking environmental and property damages for last year’s deadly Samarco mine disaster has been dismissed. Saramco is a joint venture between Vale and BHP Billiton.


First-half sales rose 2.5 percent to 443.6 million euros ($500.5 million) and the German fashion retailer said that it expected full-year earnings before interest and taxes of 10 to 20 million euros.


Venezuelan state-run PDVSA has discharged another cargo of U.S. crude sold by BP after waiting times of more than a month related to payment problems that were solved this month under a swap agreement, according to sources close to the deal.


A large investor has called for British housebuilder Persimmon to scale back an executive pay plan that could see its management share in windfalls of almost 600 million pounds ($857 million) over the next six years.


Coal is an investment opportunity as global demand will grow and a halt in spending would halve seaborne supplies in 15 years’ time, Glencore said on Monday, adding its own coal operations would be depleted by 2035 without new funds.


The head of Bank of America Merrill Lynch in Italy, tipped as a leading candidate to become chief executive at UniCredit, told an internal meeting on Monday he is happy with his current job, two sources close to the matter said.


Private banks will struggle to grow revenue given negative interest rates and restrained client activity, UBS Wealth Management President Juerg Zeltner said.


A group of 26 Mozambique civil society organisations said on Monday $1.86 billion of government debt arranged by Credit Suisse and Russia’s VTB Bank was illegal and should not be paid.

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; Editing by Sudip Kar-Gupta)

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