European Factors to Watch-Shares seen up as monetary stress eases

Thu Jun 27, 2013 2:26am EDT

LONDON, June 27 (Reuters) - European stocks were seen extending gains into a
third session on Thursday as concerns about a credit crunch in China and a
scaling back of U.S. monetary stimulus continued to ease.
    At 0616 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were between 0.2 percent
and 0.5 percent higher.
    Chinese money market rates moderated for a fifth day after last week's
spike, helping Asian stocks recover some of their recent hefty losses as fears
of a credit squeeze subsided.
    U.S. stocks also rallied while the VIX index of implied volatility,
which gauges option prices and is regarded as a measure of U.S. stock investor
'fear', fell on reduced concern that the Federal Reserve will begin to withdraw
its stimulus in the near future. 
    Economic data from the United States has been mixed this week and Fed policy
makers have said that the central bank's monetary stance will remain
accommodative even if its asset-purchase programme is dialled back.
    "Overnight, the market found more relief, as indicated by the lower VIX,"
Credit Agricole said in a note. "We expect more soothing comments from Fed
speakers, while euro zone data will point to gradual improvement."
    Euro zone data economic sentiment data is due at 0900 GMT. Economists in a
Reuters survey expect the index to rise to 90.3 points in June from 89.4 the
previous month.
    The expected equity gains on Thursday would come after the Euro STOXX 50
 index bounced 4.3 percent from last week's low to close at 2,602.81
points on Wednesday.
    The index is now 8.7 percent off the two-year high it hit in late May but it
faces technical resistance at the higher end of a "bearish gap" between its low
on June 19, at around 2,680 points, and the intra-day high the following day. 
    "Look for choppy price action with a bearish bias as long as 2,684...is
resistance," Nicolas Suiffet, a technical analyst at Paris-based technical
analysis firm Trading Central, said.
    "Only a break above 2,684 would reinstate a positive bias towards the
previous short term high at 2,851."
--------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0618 GMT:
    
 S&P 500                                1,603.26    0.96 %     15.23
 NIKKEI                                13,213.55    2.96 %    379.54
 MSCI ASIA EX-JP                          497.75    1.78 %      8.72
 EUR/USD                                  1.3026    0.12 %    0.0015
 USD/JPY                                   98.05    0.34 %    0.3300
 10-YR US TSY YLD                          2.545        --      0.00
 10-YR BUND YLD                            1.764        --      0.00
 SPOT GOLD                             $1,238.60    1.09 %    $13.36
 US CRUDE                                 $95.95    0.47 %      0.45
 

  > Asian shares extend gains as Fed, China fears subside       
  > U.S. stocks climbs as GDP data eases fear of Fed pullback   
  > Nikkei gains as China, Fed worries ease                     
  > TREASURIES-Despite weak 5-year note sale, prices end higher 
  > Euro turns tail as ECB reinforces dovish slant              
  > Gold gains 1 pct after sharp slide on U.S. GDP data         
  > Copper up on US stimulus hopes; oversupply worries weigh    
  > Brent rises for 4th day as U.S. stimulus worries ease       
    
    COMPANY NEWS
    
    BANKIA, IAG  
    Spanish nationalised lender Bankia is selling its 12.1 percent stake in
International Airlines Group, worth $906 million, under pressure to raise cash
through corporate stake disposals. 
    
    EADS  
    Germany's parliamentary committee on budget matters has approved the defence
ministry's proposal to buy some helicopters from EADS unit Eurocopter, but the
number has been reduced from what was originally proposed, several committee
sources told Reuters on Wednesday. As a result, the contract's value has been
reduced by around 200 million euros to 10.3 billion euros. 
        
    KABEL DEUTSCHLAND 
    Liberty Global is still evaluating its options for Kabel Deutschland, a
source said, after the cartel office warned a deal would be more complicated
from an anti-trust point of view than an acquisition by Vodafone.
 
    
    DEUTSCHE TELEKOM 
    Dish Network Corp bowed out of a deal for mobile service provider Clearwire
Corp. Several analysts have said Dish's best option may now be to make a bid for
Deutsche Telekom's T-Mobile US Inc. 
    
    VINCI 
    The French construction and concessions company and Credit Agricole's
 life insurance unit are among candidates to buy a stake the French
government is selling in Paris airports operator ADP, newsletter Agefi
reported on Thursday.
    
    DAIMLER, BMW, VOLKSWAGEN 
    Germany is working to derail a compromise deal to enforce stricter rules on
carbon dioxide emissions for all new cars in the European Union from 2020, EU
sources said on Wednesday. 
    
    REPSOL 
    Spanish oil major Repsol's board of directors unanimously rejected on
Wednesday a $5 billion noncash compensation offer from Argentina for its
expropriation of energy firm YPF, saying the offer does not reflect Repsol's
loss. 
    The Argentine energy company said later on Wednesday that the government
never made an official offer to compensate Repsol. 
    
    SUBSEA 7 
    The Oslo-listed offshore engineering group cut its 2013 profit estimate due
to increased costs for its Brazilian offshore GuarĂ¡-Lula project which is
struggling with delays.
    Subsea 7, which has already warned of delays at major projects in Brazil, no
longer expects full year adjusted earnings before interest, taxes, depreciation
and amortisation (EBITDA) to show progress compared to 2012 as a result.
    The estimated full-life project costs at GuarĂ¡-Lula are now expected to be
between $250 million and $300 million higher than earlier estimates, and the
negative impact of the company's net result will be in that range, Subsea 7
said.
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