European Factors to Watch-Stocks seen mixed, eyes on earnings

Tue May 7, 2013 1:31am EDT

LONDON, May 7 (Reuters) - European stocks are expected to open flat to lower
on Tuesday, with a consolidation of the previous week's gains set to continue as
British traders return to their desks, and the earnings reports of some of
Europe's biggest banks are likely to be in focus.
    The euro zone Euro STOXX 50 index closed 0.5 percent lower on
Monday, consolidating the gains of the week before when it surged to a 22-month
peak of 2,764.17 after strong U.S. monthly jobs data and an interest rate cut
from the European Central Bank (ECB).        
    Financial spreadbetters expect Germany's DAX to open flat to 2
points lower, and France's CAC 40 to open down 5 to 10 points, or as
much as 0.3 percent.
    Britain's FTSE 100 is expected to open 1 point higher to 1 point
lower, according to financial spreadbetters, opening for the first time this
week after a public holiday.
    The reopening of Europe's biggest financial centre is expected to boost
volumes as well, with a mere 42 percent of the average 90-day volume being
traded on the Euro STOXX 50 on Monday.
    Global stock markets have been supported by easy monetary policy across the
world, a trend reinforced overnight when the Reserve Bank of Australia (RBA)
followed the ECB's lead, cutting its main cash rate to a record low of 2.75
percent. 
    However, the ongoing earnings season was likely to provide direction for
European stocks on Tuesday, with heavyweight banks such as Britain's HSBC
, France's Societe Generale and Germany's Commerzbank
 all reporting and possibly setting the tone for each of the major
country's indexes.
    
    
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  MARKET SNAPSHOT AT 0520 GMT: 
 S&P 500                              1,617.50   0.19 %    3.08
 NIKKEI                              14,192.57   3.64 %  498.53
 MSCI ASIA EX-JP                        557.20   0.14 %    0.80
 EUR/USD                                1.3086   0.09 %  0.0012
 USD/JPY                                 99.16  -0.19 %  -0.190
                                                              0
 10-YR US TSY YLD                        1.752       --   -0.01
 10-YR BUND YLD                          1.251       --    0.01
 SPOT GOLD                           $1,464.99  -0.27 %  -$3.90
 US CRUDE                               $95.55  -0.63 %   -0.61
 
  > Asian shares capped but Nikkei soars on US growth hopes 
  > S&P 500 closes at record again; financials, Apple lead 
  > Nikkei climbs 2.8 pct to above 14,000, highest in nearly 5 years 
  > Bond yields reach three-week high ahead of auctions 
  > Euro tripped by ECB, Aussie on defensive ahead of RBA rate decision 
  > Gold ticks lower as equities gain, ETFs plunge 
  > Copper hits 3-week high on economic optimism 
  > Brent slips towards $105 after gains, supply worries stem losses