Europe Factors to Watch-European stocks set to rise after Alcoa

Tue Apr 9, 2013 2:38am EDT

PARIS, April 9 (Reuters) - European stocks are set to rise on Tuesday,
adding to the previous session's gains, as a strong start of the U.S. earnings
season and benign Chinese inflation data lifted investor sentiment.
    At 0630 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were up 0.5-0.7 percent.
    U.S. aluminium group Alcoa, viewed as a bellwether for the materials
sector, was the first of the S&P 500 companies to report first-quarter results,
posting a better-than-expected profit after the Wall Street's closing bell on
Monday. 
    Other big U.S. companies are set to report results during the week,
including Constellation Brands, JPMorgan Chase and Citigroup
.
    Forecasts for first-quarter earnings have been trimmed since the beginning
of the year, with profits seen rising just 1.6 percent from the year-ago
quarter, according to Thomson Reuters data. In January, earnings were seen
rising 4.3 percent.
    "Expectations for the earnings season are quite low, so the risk seems to be
on the upside, at least for U.S. companies. We could easily see the market
resuming its rally after a few positive surprises from earnings," a Paris-based
trader said.
    Also boosting sentiment on Tuesday, lower-than-expected Chinese inflation
data fuelled expectations that the country's monetary stimulus will stay in
place to support its economic growth. 
    Gains could be limited on Monday, however, as data showed German exports and
imports unexpectedly slumped in February, in a sign the euro zone's biggest
economy is being hit by the bloc's economic downturn. 
    Shares in Airbus parent EADS will be in the spotlight after top
shareholder Lagardere said late on Monday it has begun selling its 7.4
percent stake, worth 2.4 billion euros.
    European stocks inched higher on Monday, halting a sharp three-session
slide, although traders noted a lack of conviction, evidenced by low trading
volumes. 
-------------------------------------------------------------------------------
 MARKET SNAPSHOT AT 0625 GMT                            
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,563.07   0.63 %     9.79
 NIKKEI                             13,192.35     -0 %    -0.24
 MSCI ASIA EX-JP                       530.14    0.7 %     3.69
 EUR/USD                               1.3028   0.16 %   0.0021
 USD/JPY                                99.01  -0.34 %  -0.3400
 10-YR US TSY YLD                       1.740       --    -0.01
 10-YR BUND YLD                         1.250       --     0.01
 SPOT GOLD                          $1,576.24    0.2 %    $3.15
 US CRUDE                              $93.61   0.27 %     0.25
 
  > GLOBAL MARKETS-Yen stays weak, Asian shares rise on US earnings 
  > Wall St closes higher, Alcoa volatile after results 
  > Japan's Nikkei rises to near 5-yr highs on BOJ steps, gov't bonds mixed 
  > FOREX-Yen hits 47-month low vs dollar, focus on 100 threshold 
  > PRECIOUS-Gold pares losses, but equities lure investors 
  > METALS-Copper climbs on euro revival, steady China demand 
  > Brent rises above $105 after softer China inflation, N. Korea in focus 
    
    COMPANY NEWS:
    
    EADS, LAGARDERE 
    French media group Lagadere said on Monday evening it was
launching a private placement to sell all its shares in the European aerospace
group.
    Separately, the sales chief at unit Airbus said on Monday the aircraft maker
can sell 750 jets this year, confirming the top end of a 700-750 sales range the
company has previously announced. 
    
    DEUTSCHE TELEKOM 
    The European Commission on Monday evening blocked plans by Germany to raise
the fees operators such as Deutsche Telekom and Vodafone VOD.L charge each other
to connect fixed-line phone calls.
    Separately, the federal network agency has given permission for Deutsche
Telekom to expand its broadband network, under certain conditions, FAZ
reported. 
    
    ALLIANZ 
    The EU's insurance watchdog has initially rejected calls for it to cut
capital charges on insurance companies' infrastructure and private equity
investments, which politicians are pushing as a way to boost long-term growth.
 
    
    MUNICH RE, HANNOVER RE 
    Europe's third-biggest insurer Generali has short-listed two
bidders for the sale of its U.S. life reinsurance unit. Munich Re and Hannover
Re had been interested but the selected bidders are Scor and a U.S.
rival, sources said on Monday. 
    
    GENERALI 
    Europe's third-biggest insurer has moved closer to selling its U.S. life
reinsurance unit as it shortlisted two among a large number of bidders, two
people with direct knowledge of the situation said on Monday. 
    
    IMPREGILO 
    Motorway company ASTM has decided to tender almost all of its 29.9
percent stake in Impregilo to a bid launched by Salini, drawing a line under a
long fight to control Italy's biggest builder. 
    
    UBI BANCA 
    Norges Bank said on Monday it had raised its stake in the bank to 2.02
percent, against 1.97 percent held previously.
    
    COMMERZBANK 
    The head of the bank's staff council, Uwe Tschaege, told Handelsblatt he
would not rule out strikes in negotiations with management over planned job
cuts. 
    
    TUI AG 
    The city of Hamburg is keen to push for another round of merger talks
between container shippers Hapag-Lloyd, in which TUI holds a 22 percent stake,
and Hamburg Sued, a city official told Reuters on Monday.
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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