Europe Factors to Watch-Shares set extend tentative rebound

Mon Jun 17, 2013 2:34am EDT

PARIS, June 17 (Reuters) - European stock index futures pointed to a higher
open on Monday, with shares set to extend Friday's tentative rebound, although
gains were seen capped ahead of a U.S. Federal Reserve meeting later this week
which could shed light on the Fed's stimulus programme.
    At 0628 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were up 0.4-0.5 percent.
    Uncertainty over the outlook for the Fed's quantitative easing programme has
dragged on equities in the past few weeks with the euro zone's blue-chip Euro
STOXX 50 index losing 6.5 percent since late May.
    Investors have been nervous since Fed Chairman Ben Bernanke last month said
the central bank may decide to trim its programme within the next few Fed policy
meetings if data shows the economy is gaining steam.
    At the end of the Fed's two-day meeting on Wednesday, Bernanke is expected
to say that the U.S. economy is still too weak to justify slowing the pace of
bond buying in the short term, although without disavowing last month's remarks.
 
    "Although there is no possibility of Bernanke back tracking on the whole
tapering issue, he may try and highlight the fact that near zero interest rates
will remain well after quantitative easing has ended as some form of
consolation," Capital Spreads trader Jonathan Sudaria wrote in a note.
    Boosting sentiment on Monday, Japan's Nikkei share average was up
2.7 percent, recovering the 13,000 mark, as buying in defensive stocks helped
reverse early losses, nudging the index out of bear market territory. 
    Oil services stocks will be in the spotlight after Italy's Saipem 
took an axe to its outlook for the second time this year as rapidly
deteriorating relations with Algeria prompted it to predict a net loss for the
year. 
    The Euro STOXX 50 rose 0.2 percent on Friday, snapping a four-session
selloff during which the index had lost 2.3 percent.
    The index's next resistance level will be at 2,672.7 points, representing
the 23.6 percent Fibonacci retracement of the latest selloff. Above it, the next
resistance is at 2,706.87, the 38.2 percent retracement.
           
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  MARKET SNAPSHOT AT 0519 GMT:
                                                        
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,626.73  -0.59 %    -9.63
 NIKKEI                             13,033.12   2.73 %    346.6
 MSCI ASIA EX-JP                       516.09    0.5 %     2.59
 EUR/USD                               1.3332   -0.1 %  -0.0014
 USD/JPY                                94.91   0.89 %   0.8400
 10-YR US TSY YLD                       2.146       --     0.02
 10-YR BUND YLD                         1.543       --     0.03
 SPOT GOLD                          $1,387.34  -0.21 %   -$2.86
 US CRUDE                              $97.83  -0.02 %    -0.02
 
  > GLOBAL MARKETS-Asian shares capped before Fed meeting 
  > Wall St slides in volatile week, eyes on the Fed 
  > Nikkei advances on gains in defensive stocks, crawls out of bear market 
  > FOREX-Dollar gains vs yen but seen on hold as Fed meeting looms 
  > PRECIOUS-Gold marks time as investors await stimulus outlook 
  > METALS-London copper rises on short-covering ahead of Fed 
  > Brent dips below $106 as focus back on demand, stocks 
    
    COMPANY NEWS:
        
        EADS 
    After the maiden flight of Airbus A350 last Friday, Airbus is asking the
German government to pay the remaining 600 million euros ($800 million) of the
1.1 billion euro it was promised as start-up financing for the A350 project,
Focus magazine reported, citing production head Guenter Butschek.
    EADS rival Boeing will launch a new and larger version of its
lightweight 787 Dreamliner at this week's Paris Airshow with up to 100 orders
worth just under $30 billion, industry sources said on Sunday. 
    
    GDF SUEZ, FRANCE TELECOM 
    French President Francois Hollande ruled out an early sale of any state
holdings in France Telecom or utility GDF Suez, saying market valuations were
too low. 
    Hollande also said France Telecom chief executive Stephane Richard had state
backing to stay in his post as long as an inquiry into fraud allegations did not
affect his work. 
    
    SAIPEM 
    Italy's oil service group took an axe to its outlook for the second time
this year as rapidly deteriorating relations with Algeria prompted it to predict
a net loss for the year. 
    
    TELIASONERA 
    The Nordic telecom operator said on Sunday it had picked Johan Dennelind,
the current chief executive of South Africa's Vodacom International, as
its new CEO. 
    
    EUTELSAT 
    France's Eutelsat Communications SA and U.S. private equity firm KKR & Co
are among the suitors to place first-round bids for Singapore Telecommunications
Ltd's Australian satellite unit, a person with direct knowledge of the
matter said. 
    
    ABB 
    ABB said on Monday Ulrich Spiesshofer, currently head of the company's
discrete automation and motion division, will replace departing Chief Executive
Joe Hogan, taking up the role on September 15. 
    
    ROCHE 
    Japan's health ministry has approved drug Avastin for the treatment of
aggressive brain cancer in Japan, Swiss pharmaceuticals company Roche 
said on Monday. 
    
    BANCA MONTE DEI PASCHI DI SIENA 
    Rating agency Standard & Poor's lowered on Friday its long-term counterparty
credit rating on the Tuscan lender to 'B' from 'BB', and affirmed the 'B'
short-term rating. The agency subsequently withdrew all the rating at lender's
request.
    
    ENI 
    Workers at Libya's Abu Attifel oilfield, a joint venture with Italy's Eni,
have shut down production in protest over salaries, two industry sources said on
Saturday, in the latest disruption to the country's oil industry.
 
    
    FONDIARIA-SAI, UNIPOL 
    Warren Buffet's Berkshire Hathaway and Liberty Mutual said to have made
non-binding offers for some of the insurance assets Unipol must sell after its
merger with peer Fondiaria-SAI, Il Sole 24 Ore reported on Saturday.