European Factors to Watch-Shares seen down on stimulus doubts
LONDON, June 18 (Reuters) - European stocks were expected to edge lower at the open on Tuesday, halting a three-day rise as nervous investors fretted about a trimming of U.S. monetary stimulus in the run up to a Federal Reserve policy meeting. At 0614 GMT, futures for the Euro STOXX 50, Germany's DAX and France's CAC were down 0.3-0.4 percent. Futures for Britain's FTSE 100 were down 0.1 percent. They were taking their cue from Japanese stocks, down on Tuesday, and U.S. shares, which closed well off their intra-day highs on the previous day. Traders cited as an influence a Financial Times story which said the Fed was likely to signal at the end of a policy meeting on Wednesday that a move to reduce its equity-friendly asset-purchase programme was close. The article, however, couched that by saying Bernanke as usual would say subsequent moves would depend on the economy and gave no sources for its conclusions. "The overnight article in the Financial Times showed just how sensitive the market is to headlines," Chris Weston, chief market strategist at IG, said in a note to clients. "Thursday - the day after the Fed meeting - should restore clarity to the investment and trading community and perhaps cause the headline risk that is bringing the algo traders out in droves to retreat." Concerns that global central banks could reduce their largesse and spark selloffs in riskier assets have also prompted hefty losses in emerging market equities and bonds this month. The Euro STOXX 50 fell 8 percent in the two weeks to last Thursday but has risen 3 percent since hitting a 1-1/2-month intra-day low on Friday, as some weaker-than-expected U.S. data rekindled speculation of more Fed stimulus. Charts on the index showed some investors were still prepared to buy market dips, betting that a 30 percent rally since last June would resume after a volatile spell. "On a short-term basis, we are bullish, as a bullish candlestick pattern, a counter-attack line on last Friday, is confirmed," Philippe Delabarre, a technical analyst at Trading Central in Paris said, referring to last week's late rebound. He also highlighted the index's Relative Strength Index, a momentum indicator, was supported by a horizontal threshold and was making higher lows at a time when the index was recording lower lows, a divergence that often marks the reversal of a downtrend. -------------------------------------------------------------------------------- MARKET SNAPSHOT AT 0614 GMT: LAST PCT CHG NET CHG S&P 500 1,639.04 0.76 % 12.31 NIKKEI 13,007.28 -0.2 % -25.84 MSCI ASIA EX-JP 516.81 0.11 % 0.55 EUR/USD 1.3342 -0.19 % -0.0025 USD/JPY 94.81 0.34 % 0.3200 10-YR US TSY YLD 2.176 -- 0.00 10-YR BUND YLD 1.539 -- 0.01 SPOT GOLD $1,380.15 -0.3 % -$4.20 US CRUDE $97.82 0.05 % 0.05 > Asian shares slide as upcoming Fed meeting jangles nerves > US STOCKS-Wall St rises in volatile session before Fed meeting > Nikkei turns down as market wary ahead of Fed outcome > TREASURIES-Bond prices fall on jitters over Fed bond buying > Dollar hovers above 2-month low vs yen; Aussie down on RBA > PRECIOUS-Gold holds steady ahead of Fed meeting > London copper drops for 2nd day as market eyes Fed > Brent hovers near 10-week high, Fed meeting in focus COMPANY NEWS KABEL DEUTSCHLAND Germany's biggest cable operator confirmed on Monday that they have received a preliminary approach from U.S. media group Liberty Global Plc after a British newspaper reported that the company had put forward a 7.5-billion-euro bid for the company. A.P. MOLLER-MAERSK The container shipping unit of the Danish shipping and oil group has entered into an alliance with its two biggest rivals MSC Mediterranean Shipping Company S.A. and CMA CGM to improve operations and services offered. DANSKE BANK A Danish regulator has ordered the country's biggest financial institution to change how it calculates its solvency and set aside more risk capital, the bank said in a statement late on Monday. The order from the Danish Financial Supervisory Authority (FSA) would result over time in a rise in risk-weighted assets of around 100 billion crowns ($17.9 billion) relative to the figure for the first quarter of this year of 797 billion. SWISS BANKS Switzerland's lower house is due to decide whether to address a bill aimed at ending a long-running U.S. tax probe into hidden offshore accounts at Swiss banks. GENERALI BANCO ESPIRITO SANTO Portugal's Banco Espirito Santo is vying with Spain's Bankinter to buy the BSI private banking unit of Italian insurer Assicurazioni Generali , a source close to the situation said on Monday. SWISS WATCHES French luxury and sports brands group PPR is in talks to buy control of Richard Mille, one of the most expensive watch brands on the market, an industry source with first-hand knowledge of the matter told Reuters. TEMENOS The provider of software to the banking industry announced a share buyback programme for 2013 of up to 3 million shares for cancellation.
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