European Factors to Watch-Shares to advance, gains seen limited

Thu Jul 4, 2013 2:33am EDT

LONDON, July 4 (Reuters) - European shares were seen opening higher on
Thursday, mirroring advances on Wall Street and in Asia, although gains were
likely to be capped by the political uncertainties in Portugal and Egypt and
before Friday's U.S. jobs data.
    At 0630 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were 0.5 to 0.7 percent
higher.
    Volumes were expected to be thin as the U.S. market is closed on Thursday
for the Independence Day holiday. Investors were also likely to avoid big bets
as they monitor events in Egypt and ahead of rate decisions and statements by
the European Central Bank and the Bank of England later in the session.
    No policy changes are expected from both the central banks, but a jump in
yields in Portugal, and other periphery markets, might keep ECB President Mario
Draghi sounding dovish at a press conference after the rate meeting.
    Portugal's 10-year bond yield shot above 8 percent and its stock market
slumped 5 percent on Wednesday on fears a snap election could derail Lisbon's
exit next year from a bailout by the European Union and International Monetary
Fund. Political uncertainty also continued in Egypt, where the army toppled the
country's president. 
    The euro zone's blue chip Euro STOXX 50 fell 1.2 percent to
2,570.76 points in the previous session. The index was expected to face
resistance at its short-term downtrend at 2,600 and further at the 200-day
moving average at around 2,630.
    "Overcoming this resistance zone would be a first technical improvement. In
this case the index should have price potential up to 2,680," Sophia Wurm,
technical analyst at Commerzbank, said.
    "Nevertheless, with a view to the next weeks, we expect the medium-term
correction to continue," she said, adding that important short-term support
level was 2,500, while 2,400/2,440 could provide a floor in the medium term.
    The pan-European FTSEurofirst 300 index closed 0.7 percent lower at
1,150.90 points on Wednesday, when the index touched a one-week low before
paring losses. U.S. shares rose 0.1 to 0.4 percent overnight, while MSCI's
broadest index of Asia-Pacific shares outside Japan rose 1.1
percent.
--------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0630 GMT: 
  
                                                  LAST    PCT CHG   NET CHG
     S&P 500                                  1,615.41     0.08 %      1.33
     NIKKEI                                  14,018.93    -0.26 %    -36.63
     MSCI ASIA EX-JP                            499.46      0.9 %      4.44
     EUR/USD                                    1.2997    -0.07 %   -0.0009
     USD/JPY                                     99.79    -0.11 %   -0.1100
     10-YR US TSY YLD                            2.503         --      0.00
     10-YR BUND YLD                              1.674         --      0.01
     SPOT GOLD                               $1,253.56     0.19 %     $2.37
     US CRUDE                                  $101.24        0 %      0.00
  
  > Asian stocks firmer, eyes on Portugal, U.S. jobs                 
  > Wall St posts modest gains in short volatile session                    
  > Nikkei choppy ahead of US jobs data; Egypt, Portugal developments eyed  
  > TREASURIES-U.S. prices slip, nervously awaiting labor market data     
  > Dollar steadies near 5-wk high ahead of policy meetings               
  > Gold climbs for 2nd day on safe-haven buying                          
  > London copper slips from two week highs; U.S. jobs eyed              
  > Brent dips toward $105, supply fears ease after Egypt army move        
    
    COMPANY NEWS:
    
    GLAXOSMITHKLINE 
    China's top economic planning agency has opened an investigation into
pharmaceutical giant GlaxoSmithKline Plc's operations in China, an official
newspaper reported on Thursday, as foreign firms come under pressure from
Beijing for possible price-fixing. 
    
    BARRY CALLEBAUT 
    Barry Callebaut, the world's biggest maker of chocolate and cocoa products,
said strong demand from pastry chefs and restaurants in Europe and Asia helped
lift sales volumes by a better-than-expected 8.2 percent in the nine months to
May. For more, click on 
    
    HSBC 
    Europe's biggest bank's record 1.2 billion pounds ($1.83 billion) settlement
with the U.S. over money laundering charges has been approved in court,
according to the Daily Express.
    
    GENMAB 
    The Danish biotech firm said its collaborator, drug giant GlaxoSmithKline
Plc's, would start a new phase 3 study of ofatumumab to treat pemphigus
vulgaris, a rare autoimmune disorder of the skin. Ofatumumab, Genmab's only
drug, is sold under the name Arzerra for the treatment of blood cancer. For more
on the company, click on 
    
    NOKIA 
    Rating agency Moody's has placed Nokia's Ba3 credit rating on review for
downgrade and said that Nokia's move to buy out Siemens AG's share of
their network equipment joint venture strains its cash position. For more on the
company, click on 
   
    DAIMLER 
    Production at the group's U.S. truck-making plant in Portland has been
suspended after about 700 workers went on strike in a pay dispute at the start
of the week, the German company said on Wednesday. Related news 
    
    CELESIO 
    The supervisory board sacked the German drugs distributor's chief executive,
Markus Pinger, with immediate effect on Wednesday after a falling out with the
head of parent company Franz Haniel & Cie. Related news 
    
    HEIDELBERGER DRUCKMASCHINEN 
    The first fiscal quarter of the 2013/14 developed "in line with our
expectations", finance chief Dirk Kaliebe told German daily Boersen-Zeitung.
Related news 
    
    GECINA 
    The Paris-listed real-estate company said it had bought an office building
for 122 million euros including duties. 

    EIFFAGE 
    The French construction and concessions company said it had bought the
Smulders group, representing annual revenues of around 200 million euros and 770
employees in Belgium, the Netherlands and Poland. 

    SAINT GOBAIN 
    The French glassmaker said that 73 percent of its dividend payout for 2012
would be paid in shares. 

    ZODIAC AEROSPACE ZODC.PA 
    The French aerospace company said it had acquired the engineering department
of Threesixty Aerospace, a seat manufacturer owned by Virgin Atlantic Airways.
 
    
    NESTLE, DANONE 
    Swiss food company Nestle and French rival Danone are cutting the price of
infant formula milk in China after Beijing launched an investigation into
possible price-fixing and anti-competitive behaviour in the sector.
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