Europe Factors to Watch-Shares set to dip after Apple results

Thu Jan 24, 2013 2:40am EST

PARIS, Jan 24 (Reuters) - European stocks are seen edging lower on Thursday,
trimming some of the previous session's gains, as disappointing results from
tech giant Apple eclipsed data showing accelerating growth in China's
factory sector.
    At 0728 GMT, futures for Euro STOXX 50, for Germany's DAX 
and for France's CAC were down 0.01-0.06 percent.
    Late on Thursday, Apple missed Wall Street's revenue forecast for the third
straight quarter, after iPhone sales came in below expectations. 
    Shares of the company traded in Frankfurt plunged 11 percent early.
They sank 10 percent to $463 in after-hours trade on Wall Street on Wednesday
night, wiping out some $50 billion of its market value - nearly equivalent to
that of Hewlett-Packard and Dell combined.
    In China, the HSBC flash purchasing managers' index (PMI) rose to 51.9 in
January, the highest reading since January 2011 and above the 50-point level
that shows accelerating growth in the sector from the previous month.
 
    European shares inched higher on Wednesday, moving back towards a near
two-year high hit recently, although a bout of profit taking on bank and
insurance shares limited the market's rise. 
    The market has been strongly rallying over the past two months, with the
Euro STOXX 50 surging 12 percent since mid-November, as fears about
a potential break-up of the euro zone abated while global macroeconomic data
improved.
   But the rally has lost steam in the past week, as investors await further
confirmation from macro data and from companies that the worst of Europe's
economic crisis is over.
    "The medium-term positive trend is still intact, and we still have a 'buy'
recommendation, but in the short term, we're seeing a flat consolidation which
could last a little bit more," Aurel BGC chartist Gerard Sagnier said.
    The Euro STOXX 50's next key support level is at 2,698 points, representing
an upward trendline started in mid-November. On the upside, the index will hit
resistance at 2,727 points, a downward trendline started in mid-January.
       
--------------------------------------------------------------------------------
 MARKET SNAPSHOT AT 0728 GMT                            
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,494.81   0.15 %     2.25
 NIKKEI                             10,620.87   1.28 %   133.88
 MSCI ASIA EX-JP                       557.31  -0.49 %    -2.72
 EUR/USD                               1.3334   0.14 %   0.0018
 USD/JPY                                89.43   0.95 %   0.8400
 10-YR US TSY YLD                       1.835       --     0.01
 10-YR BUND YLD                         1.555       --     0.01
 SPOT GOLD                          $1,679.10  -0.36 %   -$6.04
 US CRUDE                              $95.54   0.33 %     0.31
 
  > GLOBAL MARKETS-Asian shares recover on improved China PMI 
  > S&P up for sixth day, Apple slip could halt rally 
  > Nikkei rises, helped by China data; exporters gain on weaker yen 
  > TREASURIES-Bonds firm in Asia, underpinned by U.S. growth worries 
  > Yen slips as Aussie gains support from upbeat Chinese data 
  > Gold drifts from 1-mth high, recovery hopes dull appetite 
  > Copper underpinned after China factory growth hits two year high 
  > Brent crude holds above $112 on upbeat China data 
    
    COMPANY NEWS:
    
    NOKIA 
    Shares in the Finnish handset maker may be affected as rival Apple Inc
 late on Wednesday said its quarterly iPhone shipments lagged market
forecast. 
    Nokia is due to publish its own full fourth-quarter results at 1100 GMT. The
firm has already flagged a return to underlying profitability after massive cost
cuts and stronger sales of Lumia smartphones. 
    
    COMMERZBANK 
    Commerzbank's works council deliberates cutback plans. Media reports say up
to 6,500 jobs could go. 
    
    LOGITECH 
    The No. 1 maker of computer mice swung to a third-quarter loss from a year
earlier and said it would divest non-strategic products, as it continues to be
hit hard by weakness in the global PC market. 
    
    TOD'S   
    Italy's luxury shoemaker said on Wednesday sales rose 7.8 percent in 2012 to
963.1 million euros ($1.28 billion), helped by a good performance in Greater
China. The results were roughly in line with a Thomson Reuters Starmine forecast
for average sales of 966 million euros. 

    UNICREDIT  
    The Italian lender plans to cut about 1,000 jobs at its German unit by the
end of next year in a bid to slash costs at its ailing retail bank, two people
familiar with the matter told Reuters on Wednesday. 
    
    BANCA MONTE DEI PASCHI DI SIENA  
    Italy's N.3 bank said on Wednesday it was reviewing three loss-making
structured trades made in 2006-09 after its shares plunged for the second day in
a row on fears of a mounting shortfall in its accounts.  
    Seeking to reassure investors, the Tuscan bank said the 500 million euros it
requested in extra state aid in November would be enough to absorb a hit on its
capital from those trades. 
    
    SIEMENS 
    Siemens said 98.21 percent of shareholders who attended the annual general
meeting, approved the spin-off of Osram Licht AG. Siemens shareholders will
receive one additional share of Osram for every ten Siemens shares. A listing is
expected in April at the earliest.
    
    VEOLIA, SUEZ 
    The French waste and water groups have been shortlisted to bid for a
contract worth more than 1 billion euros to treat water at a coal gas project in
Australia, Les Echos newspaper reported. 
    
    UNIPOL, FONDIARIA-SAI 
    Italy's Unipol will shed 2,200 jobs as a result of its plans to merge with
peer Fondiaria-SAI to create Italy's No 2 insurer, a trade union official said
on Wednesday. 
    
    FINMECCANICA, EADS 
    Franco-Italian regional aircraft maker ATR, jointly owned by Finmeccanica
and Airbus-owner EADS, forecast a 25 percent rise in deliveries this year as it
works through a $5.1 billion order backlog representing nearly three years' of
production.
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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