Europe Factors to Watch-Shares set to rise; EADS eyed

Tue May 14, 2013 2:33am EDT

PARIS, May 14 (Reuters) - European stocks are set to climb on Tuesday,
reversing the previous day's dip and rising towards recent multi-year highs,
with Airbus parent EADS in focus after posting a sharp rise in
quarterly core profit.
    The aerospace group reported a 56 percent jump in operating profit before
one-off items and reaffirmed its 2013 outlook. 
    At 0626 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were up 0.3-0.4 percent.
    The banking sector will also be in the spotlight after Germany's Commerzbank
 said it was offering shares at a deep discount in a 2.5 billion euro
capital hike aimed at repaying funds it owes to the German government and
insurer Allianz. 
    On the macroeconomic front, investors awaited Germany's ZEW economic
sentiment indicator as well as data on euro zone industrial production, both due
at 0900 GMT.
    "There is an expectation of a small rebound (in the ZEW) to 39.5 in the wake
of the recent record highs in the DAX and last week's rebounds in factory gate
and industrial production data for March," Michael Hewson, senior market analyst
at CMC Markets, wrote in a note.
    "This number should be treated with care though as it is a barometer of
investor sentiment and given the safety net afforded by central banks it could
bring a false sense of security."
    European shares edged off multi-year highs on Monday, with renewed worries
over the banking sector triggering a bout of profit-taking in the sector.
    The euro zone's blue chip Euro STOXX 50 index has surged nearly
10 percent since mid-April, although technical indicators such as the relative
strength index signal that the index is ripe for consolidation.
    "We could see a light pull-back or flat consolidation. A retreat towards the
peak of mid-March would be a good entry point, as the medium-term trend is still
intact," Aurel BGC chartist Gerard Sagnier said.
    
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  MARKET SNAPSHOT AT 0626 GMT
                                                        
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,633.77      0 %     0.07
 NIKKEI                             14,758.42  -0.16 %   -23.79
 MSCI ASIA EX-JP                       557.28    0.3 %     1.66
 EUR/USD                                  1.3   0.19 %   0.0025
 USD/JPY                               101.42  -0.39 %  -0.4000
 10-YR US TSY YLD                       1.926       --     0.01
 10-YR BUND YLD                         1.367       --     0.01
 SPOT GOLD                          $1,442.30   0.86 %   $12.25
 US CRUDE                              $95.61   0.46 %     0.44
 
  > GLOBAL MARKETS-Asian shares mostly rise, dollar takes breather 
  > U.S. STOCKS-Wall St ends near flat after recent highs 
  > Nikkei edges up in choppy trade, utility stocks outperform 
  > FOREX-Dollar takes breather from rally as focus turns to U.S. data 
  > PRECIOUS-Gold rises on weaker dollar after three-day fall 
  > METALS-Copper slips on soft China growth; easing hopes support 
  > Brent steady near $103 as US retail sales support, stockpiles drag 
    
    COMPANY NEWS:    
    EADS 
    Core profit at Airbus parent EADS rose sharply in the first quarter on
higher output of its most profitable civil jets, but the aerospace group said it
had consumed a significant quantity of cash to boost inventories for new
projects. 
    
    COMMERZBANK 
    The lender said it was offering shares at a deep discount in a 2.5 billion
euro capital hike aimed at repaying funds it owes to the German government and
insurer Allianz. 
    
    GDF SUEZ 
    Groupe Bruxelles Lambert (GBL) said it launched the sale of 65 million
shares in France's GDF Suez, or 2.7 percent of the capital, through an
accelerated bookbuilding limited to institutional investors. 
    
    VODAFONE 
    Verizon Wireless, the biggest U.S. mobile service provider, said on Monday
it would pay its parents Verizon Communications and Vodafone Group a dividend of
$7 billion in June, surprising some analysts who had not expected a big payout.
 

    VAN LANSCHOT 
    Dutch private bank Van Lanschot will cut 250 jobs due to a reorganisation
that will cut its corporate loan book by almost half, reduce the number of
products, and offer more online wealth management services. 
    
    K+S 
    German potash and salt miner K+S on Tuesday posted a 12.2 percent gain in
operating earnings after a prolonged cold spell in the European winter boosted
its road salt business and on strong demand for its potash fertilisers.
 
    
    BETFAIR 
    Betfair says takeover discussions with CVC Capital partners have been
terminated, with the betting company rejecting a revised proposal of 950 pence
per share. 
    
    CONTINENTAL 
    Schaeffler has terminated a 2008 investor agreement with
Germany's Continental AG, potentially opening the door to a break-up or full
acquisition of the tyre maker. 
    
    IMPREGILO 
    The builder said on Monday its board had made a preliminary assessment of
merger plans with smaller peer Salini and named advisors for the deal.
 
    
    ACEA 
    The regional utility said on Monday core earnings rose 12.5 percent to 177.7
million euros in the first quarter, helped by higher service sales and cost
cuts.
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