European Factors to Watch-Euro zone shares seen pausing at 22-mth high
LONDON, May 6 (Reuters) - Euro zone shares were expected to open flat on Monday, consolidating close to a 22-month high in what was expected to be a quiet session due to a market holiday in Britain. At 0617 GMT, futures for the Euro STOXX 50, Germany's DAX and France's CAC were between 0.1 percent higher and 0.1 percent lower. Trading volume was expected to be thin with the British stock market, Europe's largest, shut due to a national holiday. Shares in Germany's Linde were indicated to rise at the open after the world's No. 2 industrial gases producer reported a higher-than-expected first-quarter operating profit. The euro zone Euro STOXX 50 index hit a closing high not seen since July 2011 on Friday, at 2,764 points, as better-than-expected U.S. labour data boosted global growth prospects. The index sent a bullish technical signal by closing above its 2013 high at 2,755 points and its Relative Strength Index (RSI), a momentum indicator, also edged above a resistance level, daily charts showed. "The false breakout of a rising trend line... is a positive signal," Nicolas Suiffet, an analyst at Trading Central, said. "Furthermore, the daily RSI has broken above its declining trend line calling for a further advance." The index has risen 8.7 percent since an April 18 low, helped by a new government in Italy and a rate cut by the European Central Bank, leading some traders to consider taking profit on some of the best sectoral performers. "I'd take profit on the banks," a pan-European broker in Milan said. "Everything went their way but now it feels like they don't have the impetus to rise further." Euro zone banks, which are large holders of the region's debt, have risen about 14 percent since April 18. -------------------------------------------------------------------------------- MARKET SNAPSHOT AT 0620 GMT: LAST PCT CHG NET CHG S&P 500 1,614.42 1.05 % 16.83 MSCI ASIA EX-JP 556.82 0.91 % 5.01 EUR/USD 1.3117 0.04 % 0.0005 USD/JPY 99.20 0.16 % 0.1600 10-YR US TSY YLD 1.740 -- 0.00 10-YR BUND YLD 1.239 -- -0.01 SPOT GOLD $1,477.24 0.48 % $7.04 US CRUDE $96.56 0.99 % 0.95 > GLOBAL MARKETS-Asian stocks spurred higher by U.S. data > Dow, S&P 500 close at record levels after jobs report > Treasury yields surge after U.S. jobs gain > Dollar holds firm vs yen, clings to post-data gains > Gold holds near 2-week high; equities cap gains > Shanghai copper limit up on U.S. jobs data boost > Brent touches one-month high as Israel strikes Syria COMPANY NEWS EDF, AEROPORTS DE PARIS, GDF SUEZ The French state is considering selling part of its holdings in a number of firms to finance projects such as equipping remote regions with high-speed Internet, French Prime Minister Jean-Marc Ayrault said on Sunday. Ayrault said the state would consider selling shares in companies in which its stake was relatively high. France's biggest holdings include 84.44 percent of EDF, 54.54 percent of Aeroports de Paris and 36.71 percent of GDF Suez. ALSTOM, EDF ENERGIES NOUVELLES, GDF SUEZ, NEXANS France needs to hurry up and establish the regulatory framework for renewable marine energy, allowing companies to experiment with wave and tide power if it wants to catch up with industry leader Britain, a government report said. For story SWISS BANKS Germany's finance minister sees no chance of renegotiating a failed bilateral deal with Switzerland that would have sought to sweep Swiss accounts clean of German tax dodgers, even after the country's foreign minister renewed his calls for a second try. DEUTSCHE BANK The lower regional court in Munich will hold the next hearing in Deutsche Bank's dispute with the representatives of deceased media mogul Leo Kirch on June 13, German magazine Der Spiegel reported, without saying where it obtained the information. VOLKSWAGEN Volkswagen's premium brand Audi will not build a vehicle assembly plant in Brazil until the laws governing what exactly is required to ensure a car is considered locally built are clarified, the unit's chief executive said on Saturday. DEUTSCHE LUFTHANSA The company agreed with union Verdi to found three new subsidiaries for tasks such as administration and passenger handling in locations other than Frankfurt and Munich, which might pay less than the parent company, German magazine Der Spiegel reported, citing internal Lufthansa documents. Separately, Lufthansa's LSG unit said it will lower wages and increase working hours.