Europe Factors to Watch-Stocks set to fall on growth worries
PARIS, Sept 24 (Reuters) - European stocks were set to retreat on Monday, reversing the previous session's rise and tracking losses in Asia as brewing concerns over the outlook for global growth and doubts over whether Spain will soon request a bailout prompted investors to book a portion of their recent lofty gains. At 0630 GMT, futures for Euro STOXX 50, for Germany's DAX and for France's CAC were down 0.4-0.6 percent. Losses could be limited, however, by reports that the euro zone permanent bailout fund could be allowed to leverage its capital to reach a capacity of more than 2 trillion euros. German weekly news magazine Der Spiegel said euro zone states are preparing to allow the bloc's permanent bailout fund to leverage its capital in the same way as its predecessor so it can rescue big countries if necessary. Spanish Economy Minister Luis de Guindos said on Saturday Spain will not rush to seek external aid to finance its debt adding that the country's banks would need 60 billion euros to clean up the toxic property assets on their balance sheets. Greece will also be in focus on after French Prime Minister Jean-Marc Ayrault said on Sunday the indebted country should be allowed more time to meet deficit targets set by international lenders provided it is sincere about reforming its economy. The euro zone's blue chip Euro STOXX 50 index added 0.9 percent on Friday, led higher by a rally in banking shares on speculation Spain was moving towards a bailout request that would ease tensions surrounding Europe's debt crisis. The Euro STOXX 50 is up 26 percent since early June, lifted by central bank action to fight the debt crisis and revive global growth, but the index has failed to break above its 2012 high hit in March, at around 2,600 points. "Technically speaking, the medium-term upside potential for the index is about 5 to 6 percent, so we're 'neutral' at the moment. There will be better timings to buy," Aurel BGC chartist Gerard Sagnier said. The index's next support level is at 2,556 points, representing the 23.6 percent Fibonacci retracement of the rally from late August to mid-September. -------------------------------------------------------------------------------- MARKET SNAPSHOT AT 0625 GMT LAST PCT CHG NET CHG S&P 500 1,460.15 -0.01 % -0.11 NIKKEI 9,069.29 -0.45 % -40.71 MSCI ASIA EX-JP 515.65 -0.15 % -0.76 EUR/USD 1.2936 -0.34 % -0.0044 USD/JPY 78.03 -0.17 % -0.1300 10-YR US TSY YLD 1.742 -- -0.01 10-YR BUND YLD 1.579 -- 0.00 SPOT GOLD $1,759.91 -0.71 % -$12.53 US CRUDE $92.15 -0.8 % -0.74 > GLOBAL MARKETS-Asian shares fall, dollar up on growth concerns > Wall St ends flat despite Spain hope, S&P off for week > Nikkei hits 1-week low, exporters weighed by firmer yen > FOREX-Euro, Aussie slide as rally succumbs to profit-taking > Gold falls over 1 pct, pulls back from near 7-mth high > Copper falls on firm dollar, Europe concerns > Brent crude drops towards $110 on renewed growth concerns COMPANY NEWS: CREDIT AGRICOLE French bank Credit Agricole could pay an extra 600 to 700 million euros into its Greek Emporiki unit before it can sell it, the Wall Street Journal reported on Monday, citing people with knowledge of the sales process. EADS, BAE, DAIMLER BAE Systems has warned that it will walk away from its proposed tie-up with EADS if the deal waters down its special relationship with the Pentagon, Financial Times reported, citing a person close to BAE. Separately, Daimler, a major shareholder in EADS, is unhappy about the proposed valuation of a deal between EADS and BAE Systems, a person familiar with the matter said. In addition, EADS said it could offer Daimler a way to reduce its stake in the aerospace and defence company via a convertible bond. Also, a person at the company told Reuters that Daimler is expected to extend the contract of Chief Executive Dieter Zetsche by three years to 2016. SOCIETE GENERALE France's No. 2 listed bank has set itself a target to increase profits at its retail banking arms in Russia and Romania, its chief executive told the Financial Times. CONTINENTAL The automotive supplier is on track to reach its full-year targets and does not need to shorten workers' hours, Chief Executive Elmar Degenhart told Frankfurter Allgemeine Sonntagszeitung. FURGO, CGG VERITAS Dutch engineering company Fugro said on Monday it has agreed to sell the majority of its seismic data gathering unit for 1.2 billion euros ($1.56 billion) in cash to French rival CGG Veritas. TNT EXPRESS Dutch delivery group TNT Express said on Monday its chief executive would leave the company by the end of this month to pursue a different career but the takeover of TNT by U.S. rival UPS would not be affected. PUBLICIS The French advertising company said it plans to buy in the next days shares of Dutch ad agency LBi International NV in the market through UBS Investment Bank and SNS Securities. Publicis last week said it had agreed to buy LBi in a deal valuing the company at 416 million euros. SIEMENS Siemens rival General Electric plans to make acquisitions in Germany to raise its market share in CAT scan and MRI technology, the company's new chief of GE Healthcare in Germany told a magazine. Also, Siemens denied a Sunday newspaper report that its delivery of high-speed trains to German rail operator Deutsche Bahn faced further delays. RENAULT The French car maker does not intend to cut jobs or plants "at this stage", but domestic factories must improve productivity to match sites in Spain and Britain, Chief Operating Officer Carlos Tavares said in an interview published on Friday. AXA The French insurer is preparing a bid for portfolio assets that Italian insurers Unipol and Fondiaria-SAI will have to sell to secure regulatory clearance for their planned merger, newspaper Il Sole 24 Ore said on Sunday. NOVARTIS Novartis's investigational medicine RLX030 reduced the number of deaths in patients with acute heart failure, the drugmaker said on Monday based on the results of a late-stage trial. RICHEMONT Julius Baer plans to cut between 660 and 880 jobs at Bank of America Merrill Lynch's overseas wealth management business as the integration of the newly acquired unit gets under way, Swiss newspaper Sunday said. CREDIT SUISSE Credit Suisse is trimming its investment banking team in Dubai and relocating some jobs to neighboring Qatar, three sources said, as part of efforts to cut costs and focus on richer markets. HEIDELBERGER DRUCKMASCHINEN The printing machine maker is on track to reach its targets, Chief Financial Officer Dirk Kaliebe told Boersen-Zeitung in an interview published on Saturday. He also said prices are stable.
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