European Factors to Watch-Shares set to dip; Fed minutes eyed

Mon Aug 19, 2013 2:30am EDT

PARIS, Aug 19 (Reuters) - European stocks are set to dip in early trade on
Monday, mirroring losses on Wall Street as the prospect of seeing the U.S.
Federal Reserve trim stimulus next month keeps investors on edge.
    At 0618 GMT, futures for Euro STOXX 50, for Germany's DAX 
and for France's CAC were down 0.1-0.2 percent, while futures for UK's
FTSE 100 were up 0.2 percent.
    U.S. shares fell on Friday, with the Dow industrials recording its
biggest weekly loss so far in 2013, down 2.2 percent, as rising bond yields hit
shares paying big dividends and quarterly results from retailers disappointed
investors.
    Monday's macroeconomic diary is thin, with investors preparing for the
minutes of the Federal Reserve's July 30-31 policy meeting, due to be released
on Wednesday, which should shed light on the outlook for the Fed's quantitative
easing programme.
    Despite the dip seen on Monday, traders said European stocks' brisk rally
started in late June, fuelled by macro data showing the euro zone crawling out
of recession, is seen intact.
    The euro zone's blue-chip Euro STOXX 50 index - which has
strongly outperformed Wall Street over the past two months, up 14 percent while
the Dow is up 3.6 percent - gained 1 percent last week, its sixth straight
weekly gain, the index's longest streak of positive weeks since early 2009.
    German Bund futures opened 45 ticks lower at 139.77 on Monday, with
investors dumping low-risk debt as they expected the euro zone recovery to
continue. Ten-year German yields rose to their highest since March
2012 at 1.924 percent.
    "There's a growing sentiment that U.S. stocks are peaking, while Europe's
market recovery story is just starting," a Paris-based equity and
exchange-traded fund (ETF) trader said.
    "We're seeing a lot of people turning positive on Europe and we're seeing
steady inflows into the region's ETFs."
    
    
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  MARKET SNAPSHOT AT 0621 GMT: 
                                                        
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,655.83  -0.33 %    -5.49
 NIKKEI                             13,758.13   0.79 %   108.02
 MSCI ASIA EX-JP                       517.85  -0.67 %    -3.51
 EUR/USD                               1.3322  -0.05 %  -0.0007
 USD/JPY                                97.70   0.18 %   0.1800
 10-YR US TSY YLD                       2.864       --     0.04
 10-YR BUND YLD                         1.913       --     0.04
 SPOT GOLD                          $1,374.91  -0.07 %   -$0.99
 US CRUDE                             $107.32  -0.13 %    -0.14
 
  > GLOBAL MARKETS-Asian shares aimless, gold hits two-month peak 
  > US STOCKS-Wall St slips, Dow posts biggest weekly loss of 2013 
  > Nikkei turns up after yen resumes slide against dollar 
  > FOREX-Dollar steady, supported by rise in U.S. bond yields 
  > PRECIOUS-Gold extends rally on U.S. data, SPDR inflows 
  > METALS-Copper dips after 3 positive wks out of 4 on global outlook 
  > Brent holds above $110 on unrest in Egypt, worries over Fed policy 
    
    COMPANY NEWS:
    
    STATOIL, OMV 
    Norwegian oil and gas group Statoil sold minority stakes in several key
fields offshore Norway to Austria's OMV for $2.65 billion, freeing up cash for
capital expenditure, it said on Monday. 
    
    BASF 
    The chemicals group has reopened production in Egypt after closing
facilities last week due to the deadly unrest. 
    
    HANNOVER RE, LLOYDS 
    Lloyds is set to sell its German insurance business to Hannover Re for 400
million euros as it continues to streamline its business, according to a report
in Britain's Sunday Telegraph. 
    
    DAIMLER 
    The German government has defended Daimler's use of a disputed coolant,
citing a transition period up until 2017, Focus magazine reported citing a
response to an EU request for information from June 10. 
    
    ROYAL BANK OF SCOTLAND 
    W&G Investments Plc, one of three bidders vying for 315 Royal Bank of
Scotland branches, said the sale could be delayed beyond the two-year schedule.
 
        
    GLENCORE XSTRATA 
    The miner is expected to write down the value of assets inherited from
Xstrata by as much as $7 billion when it reports first-half earnings on Tuesday
- the first full set of results since the takeover that created the mining giant
in May. 
    
    VODAFONE 
    The mobile communications firm paid millions to Britain's tax authority as
part of a settlement linked to its Irish unit, the Guardian reported on Sunday.
    
    TOTAL 
    The French energy company was among 18 international oil firms permitted to
bid for 20 onshore and offshore blocks in Yemen, according to state news agency
Saba. 
    
    DEUTSCHE BANK 
    German regulator BaFin is looking into whether Deutsche Bank should improve
the controls it has in place against money laundering, a German paper reported.
 
    
    E.ON 
    Germany's largest utility is close to completing a deal to sell a brown coal
mining pit and plant in Lower Saxony to Czech group EP-Holding, Die Welt
reported on its website on Sunday. E.ON said it would not comment on ongoing
talks. 
    
    FRESENIUS 
    The group's Fresenius Kabi unit said on Monday it had signed a joint venture
with Indonesia's PT Soho Global Health for I.V. generic drugs in the country.
 
    
    ENI 
    The oil and gas group said on Friday its joint venture in the Republic of
Congo was awarded the rights to a 16,000-square kilometre block in the country's
Cuvette Basin. 
    
    KRONES 
    The bottling machine maker is not planning any major acquisitions although
smaller ones could help the company as its grows organically, CFO Christoph
Klenk said in an interview in Saturday's edition of Frankfurter Allgemeine
Zeitung. 
    
    UNITED INTERNET 
    The Internet service provider said on Monday it has agreed to take over
Spanish webhosting and cloud computing firm Arsys, which has a value of up to
140 million euros.
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