Europe Factors to Watch-Shares set to extend slide ahead of U.S. jobs data

Fri Apr 5, 2013 2:38am EDT

PARIS, April 5 (Reuters) - European stock index futures pointed to a lower
open on Friday, with stocks set to add to a sharp two-session slide, on mounting
worries over the pace of the U.S. economic recovery ahead of monthly jobs data.
    At 0625 GMT, futures for Euro STOXX 50, for the UK's FTSE 100
, for Germany's DAX and for France's CAC were down
0.1-0.2 percent.
    All eyes will be on U.S. non-farm payrolls figures, due at 1230 GMT. The
data is expected to show employers added 200,000 jobs last month, however recent
weak figures including Thursday's report showing the number of Americans filing
new claims for unemployment benefits rising to a four-month high, have raised
doubts about March payrolls and sparked worries that stocks have gotten ahead of
themselves.
    Societe Generale analysts, which have a forecast of 230,000 jobs, warned
that equities, especially U.S. stocks, have been overheating.
    "Our calculations show that the ongoing rally in risky assets and in
particular in equities cannot be justified by the NFP (non-farm payrolls)
dynamics... Only a NFP print of above 300,000 will bring closer the model and
the market values for S&P 500," the analysts wrote in a note.
    The euro zone's blue chip Euro STOXX 50 index has tumbled 2.2
percent in the past two sessions, hurt by a string of poor U.S. and European
macro data. The index has been in a downtrend since mid-March, down 0.6 percent
year-to-date, a contrast with Wall Street benchmarks which are trading at record
highs.
    "European stock indexes are now quite fragile after the recent turbulence,
and they tend to react more strongly to negative newsflow than other markets,"
said Guillaume Dumans, co-ahead of 2Bremans, a Paris-based research firm using
behavioural finance to monitor investor sentiment.
    "This has sparked a flight to quality in favour of markets with a stronger
momentum, such as Wall Street."
    Overnight in Asia, Japan's Nikkei surged 1.6 percent while the yen
sank to a 3-1/2 year low against the dollar, a day after the Bank of Japan
announced massive stimulus measures to revive the world's third-biggest economy.
    The BoJ move, however, failed to boost Asian shares ex-Japan, with the MSCI
index of Asia-Pacific shares outside Japan losing 1.2 percent as
investors move the sidelines while tensions rise in the Korean peninsula, and
ahead of U.S. monthly jobs data.
     
    
--------------------------------------------------------------------------------
 MARKET SNAPSHOT AT 0632 GMT                            
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,559.98    0.4 %     6.29
 NIKKEI                             12,833.64   1.58 %    199.1
 MSCI ASIA EX-JP                       530.11  -1.52 %    -8.17
 EUR/USD                               1.2919  -0.12 %  -0.0016
 USD/JPY                                96.09  -0.25 %  -0.2400
 10-YR US TSY YLD                       1.775       --     0.01
 10-YR BUND YLD                         1.249       --     0.00
 SPOT GOLD                          $1,550.00  -0.17 %   -$2.71
 US CRUDE                              $93.09  -0.18 %    -0.17
 
  > GLOBAL MRKTS-Nikkei soars on BOJ, Asia shares dip before US jobs 
  > Wall St gets lift from BOJ move, but U.S. data a drag 
  > Japanese stocks, gov't bonds jump after BOJ unveils massive stimulus 
  > FOREX-Yen plummets to 3-1/2 year low after BOJ's radical stimulus 
  > PRECIOUS-Gold stays near 10-mth low, U.S. jobs data in focus 
  > METALS-Copper underpinned ahead of payrolls, BoJ supports 
  > Brent off 5-month low, but heads for worst week in a month 
    
    COMPANY NEWS:
    
    TELECOM ITALIA 
    Shares in Telecom Italia surged after reports the debt-laden Italian
telecoms company could discuss merging with Hutchison Whampoa's 
Italian wireless unit H3G at next week's board meeting. 
    
    DEUTSCHE TELEKOM 
    Deutsche Telekom had no comment on whether it was considering sweetening the
terms of a proposed merger of T-Mobile USA with MetroPCS, softening an
earlier denial of a Reuters report.
    Two people familiar with Deutsche Telekom's thinking told Reuters on
Thursday the company was looking into improving the terms of a proposed merger
of its T-Mobile USA unit with MetroPCS as a last resort to win over shareholders
ahead of a vote on the deal next week.
Related news 
    
    TELEFONICA 
    Telefonica, Europe's biggest telecoms operator by revenue, has received a
200 million euro ($257.1 million) financing facility from the Canadian export
agency to buy BlackBerry smartphones and services.
    
    SIEMENS 
    A six-year pact binding Siemens and Nokia in Nokia Siemens
Networks expired on Thursday with sources at the two parent companies
saying there was no sale in sight for at least the next few months. 
    
    ATLANTIA 
    Motorway operator Atlantia said on Thursday traffic volumes on its Italian
network had fallen 2.9 percent in the first quarter compared to the same period
of 2012.
    
    PIRELLI, CAMFIN 
    Italian holding company Camfin, which controls tyremaker Pirelli, said on
Thursday its net profit in 2012 rose 30 percent to 70.1 million euros thanks to
lower losses at its troubled property unit, Prelios.
    
    ALSTOM 
    The French engineering company said it had won a 750 million-euro ($964.05
million) contract to supply equipment for Saudi Arabia's Yanbu 3 power and
desalination plant.