European Factors to Watch - Euro zone shares to rebound from 2-mth low

Fri Feb 22, 2013 2:37am EST

LONDON, Feb 22 (Reuters) - European stocks were expected to rebound on
Friday as some key regional indexes found technical support after sharps falls
in the previous session and some upbeat corporate results underpinned sentiment.
     At 0735 GMT, futures for Euro STOXX 50, Germany's DAX,
Britain's FTSE and France's CAC were 0.5-0.6 percent higher.
    Germany's DAX came off its intra-day trough on Thursday to close above lows
hit earlier this month and France's CAC was finding technical support at the
38.2 percent Fibonacci retracement level of the up move between November and
late January.
    The Euro STOXX 50, on track for its fourth straight weekly loss,
its worst streak since April 2012, fell 2.3 percent to a two-month low of
2,579.76 points on Thursday.
    It was pummelled as euro zone economic data disappointed and investors
worried the U.S. Federal Reserve may curb the stream of money that has helped
support equities in the past six months.
    But Wall Street indexes staged a late recovery on Thursday and shares in
Asia, copper and oil prices rebounded overnight, in a sign
investors were still prepared to buy the dips in assets exposed to the global
economic cycle.
    Matthias Thiel, a market strategist at M.M Warburg & CO, said economic data
was still consistent with an economic recovery in the first half of this year
and he highlighted the majority of the Fed's Open Market Committee was still in
favour of the asset purchases.
    "For this reason, we still consider this a buying opportunity for investors
with a fundamental investment approach and a medium investment horizon," Thiel
said. 
    Germany's Ifo survey, a barometer of the economic health of Europe's growth
engine, was likely to be a key driver of share price performance on Friday when
it is published at 0900 GMT.
    Economists were forecasting the Ifo business climate index to rise to 105
from 104.2 in the previous month and market expectations were high after a
separate German sentiment survey beat consensus earlier this week.
    Earnings reports may provide some support to industrial stocks as Danish
shipping and oil group A.P. Moeller-Maersk and airline Air
France-KLM reported better than expected results. 
    
    Some investors were reluctant to make large directional bets ahead of tight
Italian general elections next week, which will shed light on the pace of
economic reform in the debt-laden country.
    M.M Warburg & Co's Thiel said failure to form a stable, reform-oriented
government in Italy would dent investor confidence in the euro zone's economy
and lead the firm to review its positive stance on equities.
    "Italy would be a specific example of what we mean by political risk," Thiel
said. "If there are signs that political risk materialises or the fundamentals
get worse again, we would reduce our position."
--------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0731 GMT: 
    
                                          LAST     PCT CHG   NET CHG
 S&P 500                              1,502.42     -0.63 %     -9.53
 NIKKEI                              11,385.94      0.68 %     76.81
 MSCI ASIA EX-JP     <.MIASJ0000P       553.80     -0.07 %     -0.41
                     US>                                    
 EUR/USD                                1.3216      0.21 %    0.0028
 USD/JPY                                 93.30      0.21 %    0.2000
 10-YR US TSY YLD                        1.978          --      0.00
 10-YR BUND YLD                          1.577          --      0.00
 SPOT GOLD                           $1,584.96      0.59 %     $9.30
 US CRUDE                               $93.14      0.32 %      0.30
 
  > Asian shares recover from steep loss, growth worry caps  
  > Wall St ends lower on growth worries                     
  > Nikkei falls on U.S., Europe economic worries            
  > U.S. bond prices rise on data, Fed bond purchase view    
  > Dollar stays firm on Fed's QE doubts, euro near 6-wk low 
  > Gold rises, sluggish data suggests Fed stimulus may stay 
  > Copper off 2-month low, heads for worst wk since mid-2012 
  > Brent rebounds but eyes largest weekly loss since Dec    
    
    COMPANY NEWS
    
    A.P. MOLLER-MAERSK 
    The Danish shipping and oil group is scheduled to report fourth-quarter
results at 0700 GMT.  
    The market expects a nearly three-fold rise in quarterly net profit to $806
million thanks to a recovery in its container shipping unit, according to a
Reuters poll.
    For more on the company, click on 
   
    TELE2 
    The top executive of the Swedish telecom operator, Mats Granryd, said in a
interview with business daily Dagens Industri he was optimistic about 2013 as
the European economy improved. 

    ERICSSON 
    The Swedish telecom equipment and services group said Japan's Softbank
Mobile had selected its SSR 8000 family of routers as its main Evolved Packet
Core packet gateway node. 
    
    EUTSCHE BANK 
    Indicated 0.5 percent higher
    The bank is planning to sell Chinese yuan bonds of up to 2 billion yuan
($320.5 million) in Taiwan as soon as the first quarter, three sources with
close knowledge of the issue said on Friday. 
    
    BASF 
    Indicated 0.4 percent higher
    Wintershall, BASF's oil and gas unit, and the local unit of
France's Total plan to invest $2.1 billion over the next five years in
Argentina to increase natural gas production, the Argentine government said on
Thursday. 

    AIR BERLIN 
    Indicated 1.5 percent higher
    The German carrier said on Thursday it swung to a 2012 net profit of 6.8
million euros ($9 million) from a 420.4 million euro loss in the previous year.
 
    
    FINMECCANICA 
    The Italian defence group has delayed publication of its 2012 results after
a bribery probe connected with the sale of 12 helicopters to Indian authorities,
it said on Thursday. 
    Finmeccanica, as expected, said it examined the sale of its AnsaldoEnergia
unit and did not make a decision. 
    It named Daniele Romiti as the chief of its helicopter unit, replacing Bruno
Spagnolini, who was arrested earlier in February with Finmeccanica's former CEO
as part of the probe. 
 
    MONTE DEI PASCHI  
    Italy's top audit court has ruled that the state's plan to loan 3.9 billion
euros to troubled lender Banca Monte dei Paschi di Siena is legitimate, the
court said in a statement. 
    A Rome administrative court ruled on Thursday the state's plan to lend 3.9
billion euros ($5.16 billion) to troubled lender Banca Monte dei Paschi di Siena
 can go ahead, a source close to the matter told Reuters.
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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