Europe Factors to Watch-Shares seen flat to slightly higher

Mon Feb 11, 2013 2:35am EST

PARIS, Feb 11 (Reuters) - European stock index futures pointed to a flat to
slightly higher open on Monday, keeping the previous session's recovery rally
alive, although the gains could be limited by simmering worries over Spain and
Italy.
   At 0726 GMT, futures for the Euro STOXX 50, Germany's DAX 
and France's CAC were flat to up 0.2 percent.
    European stocks have sharply retreated over the past two weeks, with the
euro zone's blue chip Euro STOXX 50 index losing as much as 5.7
percent, dragged by rekindled fears over Spain where a scandal on secret cash
payments has affected the prime minister, while confidence in Italy has been
shaken in the run-up to the Feb. 24-25 election.
    Late on Friday, Fitch affirmed Spain's investment grade rating but warned
that it could still downgrade the country's sovereign bonds in coming months on
worries about the economy and public debt levels. Fitch rates Spain BBB, two
levels above speculative-grade debt, with a negative outlook. 
    In Italy, outgoing Prime Minister Mario Monti on Sunday accused his media
magnate rival Silvio Berlusconi of trying to buy votes with impossible promises.
With the election two weeks away, polls suggest the centre-left Democratic Party
(PD) will win a solid lower house majority but may need a deal with Monti's
centrists to gain the control of the Senate. 
    The Euro STOXX 50 gained 1.3 percent on Friday, bouncing after a week-long
slide, but the rally wasn't enough to reverse sharp losses suffered earlier in
the week.
    "While Europe's markets enjoyed a rebound on Friday, the fact that they
finished the week lower, having given up most of this year's gains, suggests
that investor sentiment remains remarkably fragile despite some evidence of a
recovery in German and Chinese economic activity last week," Michael Hewson,
senior market analyst at CMC Markets, wrote in a note.
    The return of worries over Southern Europe has dampened investor appetite
for European equities, EPFR Global data showed, although overall redemptions for
the week from Europe equity funds were a modest $264 million.
    Most Asian bourses, including those in Japan, China, Hong Kong, Singapore
and South Korea, were closed on Monday for the Lunar New Year holiday.    
--------------------------------------------------------------------------------
 MARKET SNAPSHOT AT 0727 GMT                            
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,517.93   0.57 %     8.54
 EUR/USD                                1.338   0.13 %   0.0018
 USD/JPY                                92.54  -0.12 %  -0.1100
 10-YR US TSY YLD                       1.950       --     0.00
 10-YR BUND YLD                         1.610       --     0.00
 SPOT GOLD                          $1,666.76  -0.01 %   -$0.13
 US CRUDE                              $95.61  -0.11 %    -0.11
 
  > GLOBAL MARKETS-Euro dips, oil steady in holiday-thinned trade 
  > US STOCKS-Stocks end higher for sixth straight week, tech leads 
  > Euro & yen subdued as Asia holiday saps trade 
  > PRECIOUS-Gold ticks higher, thin trade exaggerates moves 
  > METALS-Copper slips in holiday trade, but China outlook supports 
  > Brent oil price slips in light holiday trading 
    

    COMPANY NEWS:
    
    AHOLD 
    The Dutch retailer sold its 60 percent stake in Swedish supermarket chain
ICA for about 20 billion Swedish crowns ($3.1 billion) to Hakon Invest
, which already owned 40 percent of the grocer, the group said on
Monday. 

    VIVENDI 
    Vivendi's video game unit Activision Blizzard posted quarterly
results ahead of analysts' expectations, spurring hopes the largest videogames
publisher will outperform a bedraggled industry in 2013. 

    MONTE PASCHI 
    The Italian troubled lender is ready to clear the way to receiving 3.9
billion euros ($5.2 billion) in state loans in a "very short time", the bank's
Chairman Alessandro Profumo said on Saturday. 
    
    GALP ENERGIA 
    Portuguese fuel and oil company posted on Monday a sharper-than-expected 10
percent increase in quarterly net profit thanks to higher oil output in Brazil
and a rise in refining margins that offset weak domestic sales.
 
    NOVO NORDISK 
    U.S. regulators dealt a major blow to Novo Nordisk's hopes for
its new long-acting insulin Tresiba by demanding the Danish drugmaker conduct
additional clinical tests to assess potential heart risks. 
    
    SALVATORE FERRAGAMO 
    Italy's celebrity shoemaker sticks to the 20 percent target for its 2013
EBITDA margin, Il Sole 24 Ore reported on Sunday.
   
    EIFFAGE 
    France's third-largest construction and concessions company met its sales
goal of 14 billion euros last year as growth at its construction and public
works businesses in France, its largest market, offset a slowdown in the rest of
Europe. 
    
    SIEMENS 
    Siemens has mandated banks for the disposal of its solar unit and its
traffic system operations, as well as its postal automation and baggage handling
businesses, sources told Reuters on Friday. 
   
    SOFTWARE AG 
    The German software company expects profit per share to rebound over the
medium-term and views acquisitions as "part of our strategy," Welt am Sonntag
reported, citing chief executive Karl-Heinz Streibich.
    
    SABADELL 
    Chairman of Spain's Banco Sabadell Josep Oliu Creus said in an interview
published in Cinco Dias on Monday the bank would focus on potential
international acquisitions this year though did not completely rule out studying
opportunities at home. 
    
    ACCOR 
    The French hotel group aims to open a further 90 hotels in fast-growing
sub-Saharan Africa by 2020, its head of African and Middle-East operations told
French daily Le Figaro on Monday. 

    SYMRISE 
    The German scents and flavours maker expects "significant growth" in 2013
and has unbroken demand for its products, Frankfurter Allgemeine Sonntagszeitung
reported, citing finance chief Bernd Hirsch. 
   
    RENAULT 
    The French carmaker has started recalling over 60,000 cars exported to China
due to problems with their fuel level sensors, state news agency Xinhua quoted
the Chinese consumer watchdog as saying. 
    
    VOLKSWAGEN 
    Chief Executive Martin Winterkorn said he may stay at the helm of Europe's
biggest car maker beyond the term of his current contract to launch the next
Golf model, Der Spiegel reported on Saturday.
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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