Europe Factors to Watch-Shares to pause after three-week rally

Mon May 13, 2013 2:29am EDT

PARIS, May 13 (Reuters) - European shares are set for a mixed open on Monday
following a sharp three-week rally, as slightly lower-than-expected Chinese
macro data dented investors' appetite for equities.
    At 0607 GMT, futures for the Euro STOXX 50 were up 0.1 percent,
contracts on Germany's DAX were flat and futures for France's CAC
 and the UK's FTSE 100 were down 0.1 percent.
    Data showed on Monday China's annual industrial output growth quickened in
April, recovering from a seven-month low hit in March, but the figure still
missed economist expectations, highlighting the fragility of the country's
economic recovery. 
    Asian shares fell, with the MSCI's broadest index of Asia-Pacific shares
outside Japan down 0.6 percent, although Tokyo's Nikkei 
rose 1.1 percent, boosted by the weakening yen which is seen further bolstering
exporters. 
    "The rally has been very steep with no pull-back, so things look quite
fragile at this point, although a lot of investors have been awaiting a dip to
increase their long positions, which means we might not retreat much," a
Paris-based trader said.
    European shares rose to multi-year highs on Friday, led by telecoms and
healthcare stocks, and traders said key indexes had scope for further gains,
with any pullback likely to be short-lived. 
    The broad STOXX Europe 600 has surged 7.8 percent since mid-April,
boosting European stocks' valuation ratios to levels not seen in more than three
years. The pan-European index trades at 12.6 times expected earnings in the next
12 years, its highest price-to-earnings ratio since January 2010.
    
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  MARKET SNAPSHOT AT 0613 GMT:
                                                        
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,633.70   0.43 %     7.03
 NIKKEI                             14,782.21    1.2 %   174.67
 MSCI ASIA EX-JP                       556.88  -0.79 %    -4.41
 EUR/USD                               1.2982   0.18 %   0.0023
 USD/JPY                               101.62  -0.22 %  -0.2200
 10-YR US TSY YLD                       1.914       --     0.01
 10-YR BUND YLD                         1.375       --    -0.01
 SPOT GOLD                          $1,436.00  -0.81 %  -$11.70
 US CRUDE                              $95.36  -0.71 %    -0.68
 

  > GLOBAL MARKETS-Firm dollar hits oil; Nikkei jumps on weak yen 
  > Wall Street ends up, posts third week of gains 
  > Nikkei rises to 5-1/2-year high as exporters and brokers surge 
  > FOREX-Dollar climbs to 4 1/2 yr high of 102 yen after G7 
  > PRECIOUS-Gold down 1 pct to near 2-week low on dollar 
  > Brent slips towards $103 on demand growth worries, stronger dollar 
    
    COMPANY NEWS:
    
    ELAN 
    The company stepped up its bid to keep its independence on Monday by
agreeing a $1 billion deal to buy 21 percent of the royalty that U.S. company
Theravance THRX.O receives from GlaxoSmithKline for its respiratory
drugs. 
    
    ACCIONA 
    Spain's Acciona posted on Monday flat first-quarter core profit as strength
at its water business failed to offset a poor infrastructure performance and a
new tax on its energy business. 
    
    AIRBUS 
    China's decision to ease a boycott of some $11 billion in Airbus jet orders
followed a high-level appeal from the planemaker urging Beijing to recognise its
support over a trade row with Europe, a letter seen by Reuters shows. 
    
    DEUTSCHE TELEKOM 
    Deutsche Telekom has given its U.S. operations more autonomy, positioning
its business to compete better with bigger and smaller rivals, Chief Executive
Rene Obermann told Germany's Welt am Sonntag newspaper. 
    
    BAYER 
    Bayer suggested in an interview with Reuters that there was room to lift
prices at its high-tech plastics and chemicals business this year to counter
soaring raw material costs that squeezed first quarter margins.
    
    ABB 
    The world's biggest supplier of industrial motors and power grids said its
chief technology officer had decided to leave the company for family reasons.
 
    
    COMMERZBANK 
    Germany's Handelsblatt said Commerzbank is set to place shares on May 14 or
May 15, as part of plans for a capital increase. Reuters has reported that new
shares may be offered at a 50 percent discount, and that Commerzbank could knock
35 percent off the theoretical ex-rights price, implying that these may be sold
at around 5.50 euros apiece. 
    
    SWISS LIFE, VALIANT 
    Swiss Life and Valiant are discussing a distribution partnership, which may
include the insurer taking a stake in the bank, Swiss newspaper Sonntag reported
on Sunday, citing sources familiar with the matter. 
    
    HEIDELBERGER DRUCK, KBA KOENIG & BAUER 
    The German printing machines maker is in talks about a possible partnership
with rival KBA Koenig & Bauer Group, the Frankfurter Allgemeine Zeitung paper
reported. 
    
    VOLKSWAGEN 
    German car maker Volkswagen will build a factory with an annual capacity of
300,000 vehicles in Changsa, Hunan province, China, Frankfurter Allgemeine
Zeitung said on Saturday. 
    
    LUXOTTICA UNICREDIT 
    Luxottica's founder Leonardo Del Vecchio has raised its stake in UniCredit
to 3 percent from 2 percent. The bank's chairman Giuseppe Vita said at a
shareholder meeting on Saturday he expects the bank to perform better in 2013
than in 2012. 
    
    FRESENIUS SE 
    German diversified healthcare group Fresenius has identified potential
takeover targets costing up to 300 million euros ($389 million), Chief Executive
Ulf M. Schneider told German weekly paper Euro am Sonntag. 
    
    AXEL SPRINGER 
    The German publisher has drawn up a cost-cutting programme to save 20
million euros in a move which could see up to 200 staff made redundant, weekly
magazine Der Spiegel said, citing people familiar with the plan. 
    
    GFK 
    The market research company said late on Friday its first-quarter adjusted
operating profit dropped by 31 percent but affirmed its 2013 outlook, saying
orders had developed well since March. Full results are due on May 15.
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