European Factors to Watch-Shares seen down, focus on Fed

Tue Aug 20, 2013 2:54am EDT

LONDON, Aug 20 (Reuters) - European shares were expected to fall for a
second day on Tuesday, tracking steep losses in Asia and on Wall Street, with
persistent concerns about a possible cut in U.S. stimulus from next month
hurting sentiment.
    Thin trading conditions because of the summer holiday season in Europe and a
light economic data calendar were seen prompting investors to stay cautious
ahead of Wednesday's release of the minutes from the U.S. Federal Reserve's last
policy meeting, which could provide some hints about the Fed's likely move.
    "The trend of declining equities and rising government bond yields around
the globe looks set to be in place again today as the markets continue to
increase the probability of a September (Fed) taper," Capital Spreads trader
Jonathan Sudaria said in a note.
    At 0651 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were 0.5 to 0.8 percent
lower.
    German Bund futures rose 24 ticks to 140.17.
    Japan's Nikkei average fell 2.6 percent on Tuesday, while U.S.
stocks   dropped 0.4 to 0.6 percent in the previous session,
when the pan-European FTSEurofirst 300 index closed 0.6 percent lower.
    Investors will keep a close eye on company earnings to gauge the market's
near-term direction. According to Thomson Reuters Starmine, 89 percent companies
on the STOXX Europe 600 have reported second-quarter results, of which
45 percent have missed expectations, while the rest have met or beaten.
    The results so far have been slightly better than the first quarter, when 48
percent companies in total missed analysts' predictions. In the last quarter of
2012, 47 percent companies reported results below market expectations.
    Glencore Xstrata posted a 9 percent drop in core profit on Tuesday,
while top global miner BHP Billiton missed forecasts with a 15 percent
fall in second-half profit.  
    Swiss chocolate maker Lindt & Spruengli's underlying sales beat
expectations and rose 8.7 percent in the first half, while the world's largest
maker of dental implants, Straumann, posted a 21 percent jump in net
profit.  
    On the macroeconomic front, focus at 1145 GMT will be on chain store sales
for the week ended Aug. 17 from ICSC/Goldman Sachs, and the Federal Reserve Bank
of Chicago's Fed National Activity Index for July at 1230 GMT.
   
-------------------------------------------------------------------------------
    MARKET SNAPSHOT AT 0650 GMT:
     S&P 500                                    1,646.06    -0.59 %     -9.77
     NIKKEI                                    13,396.38    -2.63 %   -361.75
     MSCI ASIA EX-JP                              505.22    -2.05 %    -10.57
     EUR/USD                                       1.334     0.05 %    0.0007
     USD/JPY                                       97.29    -0.27 %   -0.2600
     10-YR US TSY YLD                              2.831         --     -0.05
     10-YR BUND YLD                                1.877         --     -0.02
     SPOT GOLD                                 $1,357.16    -0.61 %    -$8.32
     US CRUDE                                    $106.40    -0.65 %     -0.70
 
  > Cloudy Fed outlook looms over Asian markets                      
  > Wall St falls for fourth straight session as Fed eyed                   
  > Nikkei slips 0.5 pct as Fed uncertainty                                 
  > Yields reach two-year highs as tapering seen near                     
  > Dollar index holds steady; kiwi falls on RBNZ comments                
  > Gold edges lower after recent gains as stimulus outlook awaited       
  > London copper takes a breather after three-week rise; Fed eyed       
  > Brent slips below $110 on Fed policy concerns; Egypt supports          
  
    
    COMPANY NEWS
    
    GLENCORE XSTRATA 
    Glencore Xstrata wrote down the value of assets inherited from miner Xstrata
by $7.7 billion, as it announced a 9 percent drop in core profit in the first
set of full results since the commodities group was created. 
    
    BHP BILLITON 
    Top global miner BHP Billiton missed forecasts with a 15 percent fall in
second-half profit on Tuesday, despite slashing costs and raising its output of
iron ore, copper, coal and oil in the face of falling commodity prices.
 
     
    LINDT & SPRUENGLI 
    Swiss chocolate maker Lindt & Spruengli said underlying sales rose by a
better than expected 8.7 percent in the first half of the year, helped by
buoyant demand for its products in North America. 
    
    STRAUMANN 
    The world's largest maker of dental implants posted a 21 percent jump in net
profit in the first half and expects cost cuts to further boost profitability in
the rest of the year. 
    
    CRH 
    The company said it saw the second-half earnings in line with last year
after reporting a 3 percent drop in sales revenue. 
    
    DEUTSCHE WOHNEN, GSW IMMOBILIEN,
    German property group Deutsche Wohnen launched a 1.75 billion euro ($2.34
billion) all-share bid for rival GSW Immobilien, creating a company focused on
the thriving real estate market of Berlin. 
    
    TOTAL 
    The French oil major said it had discovered gas condensate in deep waters
off the coast of Gabon, raising hopes for other explorers in the region.
 

    A.P.MOLLER-MAERSK 
    Nils Smedegaard Andersen, the chief executive of the Danish shipping and oil
group, says the group's container ship capacity is sufficient to meet needs for
several years, and that the group will aim for a stable rate environment where
the industry can make money, shipping daily Lloyd's List said. For more on the
company, click on 
    
    DEUTSCHE BANK 
    Germany's biggest lender aims to grow in China both organically and via
acquisitions to benefit from expected economic reforms there, Handelsblatt
newspaper cited Deutsche Bank's Asia chief Alan Cloete as saying. Related news
 
    
    NOVARTIS 
    Novartis said U.S. regulators have granted breakthrough therapy status for
its investigational compound bimagrumab for the potential treatment of patients
with sporadic inclusion body myositis (sIBM). For more, click on: 
    
    PERSIMMON 
    Housebuilder Persimmon said government measures to help first-time buyers
had boosted its spring sales, with reservations since April 1 running 30 percent
ahead of a year ago. 
    
    WIENERBERGER 
    The world's largest brickmaker said second-quarter core profit rose 7
percent and it saw the western European construction market stabilising in the
second half. 
    
    VOLKSWAGEN 
    Volkswagen's sports car brand Porsche expects another record year this year
after vehicle sales rose 17 percent in the first seven months of the year,
Porsche's Chief Executive Matthias Mueller said, according to German paper
Westfalen-Blatt. Related news