European Factors to Watch-Shares to gain; focus on earnings, Fed

Tue Jul 30, 2013 2:36am EDT

LONDON, July 30 (Reuters) - European shares were set to open higher on
Tuesday, tracking stronger Asian markets, although mixed company results and
caution ahead of central bank meetings were expected to limit the market's
advancement.
    Gains in China and Hong Kong shares were led by banks after the Chinese
central bank injected cash into the money markets for the first time since
February, while stronger exporters helped Japan's Nikkei average to rise
1.5 percent.
    In Europe, focus is on earnings as more than 40 major companies are
scheduled to announce results on Tuesday, giving the market plenty of corporate
news to trade on. Early results were mixed.
    Deutsche Bank's second-quarter pretax profit missed analyst
expectations, Wacker Chemie cut its sales outlook for 2013, while
Clariant posted a better-than-expected second quarter profit.
    According to Thomson Reuters StarMine data, out of 36 percent of the STOXX
Europe 600 companies that have reported second-quarter results so far,
55 percent have met or beaten profit forecasts.
    In the United States, 52 percent S&P 500 companies have reported
results, of which 73 percent have met or beaten and the rest have missed
predictions.
    This week's attention will be the policy meetings of the U.S. Federal
Reserve, the European Central Bank and the Bank of England. Investors' attention
will be mainly on the Fed's two-day meeting, starting on Tuesday, for more
clarity on when it could start slowing its $85 billion monthly bond purchases.
    At 0628 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were 0.4 to 0.6 percent
higher.
    Analysts said the stock market's outlook remained positive.  
    "We think European stocks are attractive, both on a long-term value basis
and also because European stocks are most likely to benefit from political and
monetary events over the short-term," Chris Darbyshire, chief investment officer
at Seven Investment Management, said.
    The pan-European FTSEurofirst 300 index ended 0.1 percent higher at
1,206.04 points on Monday and remained on track to record its best monthly
performance in one year.
   
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  MARKET SNAPSHOT AT 0630 GMT: 
                                                  LAST    PCT CHG   NET CHG
     S&P 500                                  1,685.33    -0.37 %     -6.32
     NIKKEI                                  13,869.82     1.53 %    208.69
     MSCI ASIA EX-JP                            521.30     0.38 %      1.97
     EUR/USD                                    1.3255    -0.04 %   -0.0005
     USD/JPY                                     98.35     0.42 %    0.4100
     10-YR US TSY YLD                            2.587         --     -0.01
     10-YR BUND YLD                              1.666         --      0.00
     SPOT GOLD                               $1,325.10    -0.14 %    -$1.89
     US CRUDE                                  $104.32    -0.22 %     -0.23
 
  > Stocks waver, dollar pushes higher ahead of Fed meeting          
  > Wall St declines as investors focus on Fed policy meeting               
  > Nikkei edges higher in cautious trade ahead of earnings, Fed outcome    
  > U.S. bonds fall on corporate supply before Fed talks                  
  > Dollar edges higher; Aussie tumbles on RBA comments                   
  > Gold marks time ahead of Fed meet, stimulus eyed                      
  > Copper bides time near three week low; eyes Fed meet                 
  > Brent crude steady above $107 ahead of Fed outcome                     
    
    
    COMPANY NEWS
 
    DEUTSCHE BANK 
    The bank pledged to cut risky assets from its balance sheet in response to
regulatory concerns, as quarterly profit missed expectations, hit by a 630
million euro ($834.97 million) hike in litigation reserves. 
    
    UBS 
    UBS said it will repay a loan and buy back equity in a fund set up as part
of its 2008 bailout, a move the Swiss bank expects will bolster its capital
later this year. For more, click on:   
    
    BARCLAYS 
    Barclays plans to raise 5.8 billion pounds ($8.9 billion) from its
shareholders to answer pressure from Britain's regulator for the bank to boost
its capital strength and meet another 2 billion pound mis-selling charge.
 
    
    CLARIANT 
    Swiss specialty chemicals maker Clariant posted a
better-than-expected quarterly profit as it reaped the gains from a
restructuring, and said it was gradually moving towards its short and mid-term
targets. For more, click on: 
    
    SANTANDER 
    Spain's biggest bank Santander on Tuesday said net profit rose 29 percent in
the first six months of 2013 to 2.25 billion euros ($2.98 billion), in line with
analysts' expectations. 
    
    WACKER CHEMIE 
    Germany's Wacker Chemie slashed its sales outlook for 2013, pointing to
weaker prices for polysilicon, a key material it produces for the crisis-ridden
solar industry. 
    
    BP 
    The international oil company increased its giant accounting provision for
the 2010 oil spill to $42.4 billion from $42.2 billion on Tuesday and said its
$20 billion fund to pay spill compensation had only $300 million left in it.
 
    
    ALCATEL LUCENT 
    The telecom equipment maker saw second-quarter revenue climb 1.9 percent to
3.61 billion euros ($4.78 billion)as strength in its key U.S. market offset
declines in all other regions. 
    Separately, Alcatel announced a plan to jointly invest with Qualcomm
Technologies Inc to develop the next generation of 'small cell' base stations
aimed at improving wireless connectivity in residential and business
environments.
   
    PANDORA 
    Danish jewellery maker Pandora raised its outlook for 2013, citing strong
sales of newly launched products across all major regions. 
    For more information on the company, click on 
    
    EDF 
    The French utility raised its outlook for 2013 core profit growth to at
least three percent from a range of zero to three percent profit due to strong
performance of its nuclear fleet and a renegotiation of gas contract prices in
Italy. 
    
    AIR LIQUIDE 
    The French industrial gases group said it expects full-year profit to rise
"barring a degradation of the environment" after a 4 percent drop in first-half
profit. 
    
    INFINEON 
    German chipmaker Infineon on Tuesday raised its full-year revenue and
operating profit outlook after reporting a better-than-expected third-quarter
operating profit as its key automotive market continued to recover.
 
    
    MARINE HARVEST 
    Marine Harvest, the world's largest fish farmer, may offer dividends more
frequently, board member Tor Olav Troeim told financial daily Dagens Naeringsliv
on Tuesday. For more information on the company, click on 
    
    DSV 
    Danish freight forwarder DSV posted a surprise fall in second quarter core
profit, against analyst expectations for a small increase, but maintained its
full-year outlook. For more information on the company, click on