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