Europe Factors to Watch-Shares set to keep rally alive; U.S. jobs eyed

Fri Jul 5, 2013 2:34am EDT

PARIS, July 5 (Reuters) - European stocks are set to open higher on Friday,
extending the previous session's sharp rally ahead of U.S. payrolls data that
should shed light on the Federal Reserve's plan to start winding down its
monetary stimulus.
    At 0625 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were up 0.1-0.3 percent.
    Payrolls data, due at 1230 GMT, is expected to show that employers have
added 165,000 new jobs to their payrolls last month, according to a Reuters
survey of economists, slightly below the 175,000 positions created in May, but
not enough to shift the U.S. Federal Reserve away from its plan to start scaling
back monetary stimulus later this year. 
    Shares in European telecom gear makers will be in the spotlight after
Samsung Electronics Co Ltd missed already modest expectations for
its quarterly earnings guidance, deepening worries that its smartphone business
may have peaked. 
    European stocks surged on Thursday, with the euro zone's blue-chip Euro
STOXX 50 index jumping 3 percent, after central banks in Britain and
the euro zone said interest rates would remain low for the foreseeable future.
    The Euro STOXX 50 managed to cross above a key resistance level, the 200-day
moving average at 2,634.39 points, sending a positive technical signal. The
benchmark's next resistance level is at 2,673, representing the 50 percent
retracement of the slide from late May to late June.
    "We're in a technical rebound, retracing the correction, and this is set to
last a bit more so shorting this market is a pretty bad idea at this point,"
FXCM analyst Vincent Ganne said. 
    "The Euro STOXX 50 could go up to as high as 2,680 points, and after that, I
expect it to lose steam and stay range bound for a while."   
    
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  MARKET SNAPSHOT AT 0623 GMT:
                                                        
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,615.41   0.08 %     1.33
 NIKKEI                             14,309.97   2.08 %   291.04
 MSCI ASIA EX-JP                       502.82   0.77 %     3.85
 EUR/USD                               1.2896  -0.13 %  -0.0017
 USD/JPY                               100.35   0.32 %   0.3200
 10-YR US TSY YLD                       2.524       --     0.02
 10-YR BUND YLD                         1.653       --     0.00
 SPOT GOLD                          $1,240.81  -0.67 %   -$8.38
 US CRUDE                             $101.02  -0.22 %    -0.22
 
  > GLOBAL MARKETS-Asia shares lifted by Europe rally, sterling sags 
  > Nikkei bounces to 5-wk high on Europe's stimulus hopes; US jobs eyed 
  > FOREX-Dollar shines as ECB recommit to easy money 
  > PRECIOUS-Gold eases for 2nd day, U.S. jobs data eyed 
  > METALS-London copper slips ahead of U.S. jobs report 
  > Brent holds above $105, on track for biggest weekly gain in 1 mth 
    
    COMPANY NEWS:
    
    TELECOM ITALIA 
    Telecom Italia has ended contacts with Hutchison Whampoa Ltd on
merging their Italian mobile businesses, preferring to focus on a plan to spin
off its fixed-line network.
    
    CASINO 
    The retailer said it had signed a $1 billion five-year credit facility with
a group of 10 banks to refinance an existing three-year $900 million loan signed
nearly two years ago. 
    
    SAFT 
    The French battery maker warned that it expects 2013 sales to be toward the
bottom of its outlook provided in February, adding that full-year operating
profit would be in the range of 90-95 million euros. 
    
    GDF SUEZ 
    The utility would consider a role in an expected French bid to build a
nuclear-reactor project in Saudi Arabia, CEO Gerald Mestrallet said in an
interview with business daily Les Echos published on Friday.
    
    SAP 
    Co-Chief Executive Jim Hagemann Snabe brushed off criticism of the business
software company's system of dual leadership, according to an interview
published in Handelsblatt daily. 
    
    ALTRAN 
    The members of Altran's executive committee have teamed up with Altimus, a
French joint-stock company they control and which is managed by Philippe Salle,
to buy a 2.4 percent stake in Altrafin Participations, Altran's reference
shareholder, controlled by Apax. 
    
    FIAT 
    Fiat unveiled a seven-seat version of its retro-style 500 model on Thursday,
hoping to tap into demand for higher-end cars and stem losses from Europe's
moribund mass-market.
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