Europe Factors-Shares set to fall for 5th session

Tue Jun 7, 2011 1:53am EDT

 (Adds details, company news; updates bookies, snapshot table)
 PARIS, June 7 (Reuters) - Financial bookmakers expect to see the main
European stock indexes falling on Tuesday, set to lose ground for a fifth
session in a row as growing concerns over the health of the global economy
continue to rattle investors.
 Financial spreadbetters expected Britain's FTSE 100 .FTSE to open 15 to 21
points lower, or as much as 0.4 percent, Germany's DAX .GDAXI to open 20 to 35
points lower, or as much as 0.5 percent, and France's CAC-40 .FCHI to open 7
to 14 points lower, or as much as 0.4 percent.
 The S&P's 500 Index .SPX fell 1.1 percent on Monday, extending its slide
to a fourth day and hitting its lowest level since March 18.
 U.S. Federal Reserve officials said recent economic data has been
disappointing, with one suggesting it could delay the Fed's exit from its
extremely easy monetary policy.
 "The slowdown does change when you think the timing would be for when an
exit strategy would be appropriate," Eric Rosengren, president of the Boston
Federal Reserve Bank, told CNBC in an interview. [ID:nN06299146]
 The euro edged up early in Asia on Tuesday. The single currency has gained
more than 4 percent since climbing off the May 23 trough, which might have
limited the downside pressure on European equities, said Valerie Gastaldy, head
of Paris-based technical analysis firm Day By Day.
 "The recent strength in the euro blurs the readings on other asset classes
such as equities. A lot of trading products such as equity and commodity ETFs
are linked to the currency market. But investors should be careful because
correlation strategies aren't working so well in a directionless market like the
one we have now," she said.
 The euro and euro zone shares have had a relatively strong positive
correlation since late 2008, and the fact that the euro gained ground over the
past two weeks is said to have limited the scope of a retreat in equities so
far.    
 ----------------------MARKET SNAPSHOT AT  0545 GMT------------------- 
                                      LAST        PCT CHG     NET CHG 
 S&P 500                  .SPX  1,286.17        -1.08 %      -13.99 
 NIKKEI                  .N225  9,431.82         0.55 %       51.47 
 MSCI ASIA EX-JP .MIASJ0000PUS    572.20        -0.44 %       -2.53 
 EUR/USD                  EUR=    1.4609         0.23 %      0.0033 
 USD/JPY                  JPY=     80.27         0.24 %      0.1900 
 10-YR US TSY YLD    US10YT=RR     3.002             --        0.01 
 10-YR BUND YLD      EU10YT=RR     3.011             --       -0.02 
 SPOT GOLD                XAU= $1,544.56         0.10 %       $1.51 
 US CRUDE                 CLc1    $98.57        -0.44 %       -0.44 
 --------------------------------------------------------------------- 
 
 GLOBAL MRKTS-Euro up, Aussie firm ahead of c.bank meetings [ID:nL3E7H701U]
 Wall St hits 2-1/2 month low on economic worry             [ID:nN06288857]
 Nikkei flat, attractive valuations keep tone firm          [ID:nL3E7H707P]
 Euro steadier, Aussie eyes RBA rate meeting                [ID:nL3E7H634I]
 TREASURIES-30-yr yield up before auction, 10-yr near 3 pct [ID:nL3E7H709O]
 Gold steady near 1-month top on economic concerns          [ID:nL3E7H7040]
 Brent drops below $114 on expectations of OPEC target hike [ID:nL3E7H708U]
 Copper falls; Chile strike cushions but econ anxiety grows [ID:nL3E7H706R]
 
 COMPANY NEWS:
 
 AHOLD (AHLN.AS)
 The Dutch grocer beat first-quarter profit forecasts, helped by the timing
of Easter and potentially easing fears it is struggling to pass on higher food
prices to cash-strapped shoppers in its main U.S. market. [ID:nSGE756008]
 
 SAINT-GOBAIN (SGOB.PA)
 The planned initial public offering of the French glass maker's glass
packaging unit is set to move forward in the next few hours with the
announcement of a price range as well as regulatory clearance, sources said.
[ID:nLDE75521N]
 
 STATOIL (STL.OL)
 Norwegian energy giant Statoil agreed to sell a 24.1 percent stake in a
European natural gas transport venture to a group including German insurer
Allianz (ALVG.DE) and the Abu Dhabi Investment Authority for 17.35 billion
Norwegian crowns ($3.23 billion).
 
 PPR (PRTP.PA)
 The French retailer and luxury goods giant is in talks to make a large
acquisition in the luxury sector, La Tribune reported, citing an unnamed
internal source. [ID:nLDE7552GR]
 
 CLARIANT (CLN.VX)
 Specialty chemicals-maker Clariant (CLN.VX) raised its 2011 sales and
margins target and said it intended to resume dividend payments for this year.
 
 CAR MAKERS
 Automobile production in Brazil surprisingly rose in May as strong consumer
demand for durable goods helped offset the impact of work stoppages in some of
the nation's largest car factories, industry data showed on Monday.
[ID:nN06275373]
 
 GDF SUEZ (GSZ.PA)
 The owner of Europe's largest gas distribution network is to sell its
Italian gas grid for 772 million euros, the latest in a programme of asset
sales. [ID:nLDE7550YM]
 
 IPSOS (ISOS.PA)
 The French market research group confirmed that its board had authorized
talks with British marketing company Aegis AEGS.L on the possible purchase of
its Synovate unit. [ID:LDE755066]
 
 ACTELION (ATLN.VX)
 Actelion, Europe's largest biotech company which has been under pressure
from activist investor Elliott Advisors, is changing its management structure,
including appointing a chief operating officer.
 
 (Reporting by Blaise Robinson)

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