Europe Factors to Watch-Shares set to extend Thursday's rally

Fri Aug 23, 2013 2:30am EDT

PARIS, Aug 23 (Reuters) - European stocks are set to rise on Friday, adding
to the previous day's sharp gains and mirroring a rally on Wall Street following
a batch of upbeat macroeconomic data from around the world.
    At 0622 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.
    U.S. shares rose on Thursday in a session marred by a long trading halt on
the Nasdaq stock exchange due to technical problems, while Japan's Nikkei
 added 2.2 percent on Friday, led by exporters which got an extra lift
from a weaker yen.  
    European stocks strongly rallied on Thursday, with the euro zone's blue-chip
Euro STOXX 50 index gaining 1.4 percent, lifted by economic data
from the euro zone signalling that the region's recovery was taking hold,
fuelling expectations of better corporate earnings into the year-end.
    The fundamentals for the single currency bloc are looking increasingly
bullish after a batch of PMIs for the region came as better than expected, IG
market strategist Stan Shamu said.
    "While readings from Germany were very strong, we feel the fact that France
remains lukewarm will be enough to prevent a hawkish turn by the ECB. They will
not want to derail the recovery and as a result it's hard to be overly bullish
on the euro," he wrote in a note.
    European stocks have been in the spotlight since data showed earlier this
month the euro zone has pulled out of a long recession, with the region's
equities enjoying strong investment inflows and benchmark indexes sharply
outperforming U.S. shares.
    According to data from Thomson Reuters Lipper, flows into European equities
from U.S.-based funds hit their highest level since mid-June in the week ended
August 21, signalling rising investor appetite for the region's stocks.
    A Lipper basket of 92 funds invested in European shares, which include
exchange-traded funds' (ETFs) holdings, took in a net $1.08 billion, the biggest
weekly inflow since a record $1.17 billion hit in mid-June, and an acceleration
from the previous week's $755 million in inflows.
    The upbeat flow figures for Europe represent a sharp contrast with the
overall flow data for equities around the world. Investors pulled roughly $9.4
billion out of stock funds during the week, marking the biggest outflow from the
funds since July 2012. 
    European stocks have outperformed Wall Street since late June, with the euro
zone's blue-chip Euro STOXX 50 index up 13 percent and the S&P 500
 up 6 percent.
    
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  MARKET SNAPSHOT AT 0626 GMT: 
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,656.96   0.86 %    14.16
 NIKKEI                             13,660.55   2.21 %   295.38
 MSCI ASIA EX-JP                       503.69   0.66 %     3.31
 EUR/USD                               1.3344  -0.07 %  -0.0010
 USD/JPY                                99.06   0.35 %   0.3500
 10-YR US TSY YLD                       2.886       --    -0.01
 10-YR BUND YLD                         1.920       --     0.00
 SPOT GOLD                          $1,375.71   0.03 %    $0.47
 US CRUDE                             $104.91  -0.11 %    -0.12
 
  > GLOBAL MARKETS-Asian shares take heart from upbeat data 
  > US STOCKS-Wall St climbs after extended Nasdaq outage 
  > Tokyo's Nikkei share average rises 3.01 pct 
  > FOREX-Dollar near 3-wk high vs yen, higher US bond yields support 
  > PRECIOUS-Gold eases on U.S. data, stimulus concerns 
  > METALS-Copper little changed; eyes first weekly loss in four 
  > Brent rises above $110 as global economic outlook glows 
    
    COMPANY NEWS:
    
    EADS DEUTSCHE LUFTHANSA 
    Lufthansa's board of directors and supervisory board are expected
to approve in mid-September an order for about 50 wide-body jets worth more than
$10 billion at list prices, according to two people familiar with the matter.
 
    
    MAN SE 
    Volvo Cars Chief Executive Hakan Samuelsson has struck deals with German
prosecutors and his former employer, truckmaker MAN SE, to settle an
investigation into corruption during his time with the German company. 
    
    PARMALAT 
    Italian dairy group Parmalat may buy a stake in bankrupt Brazilian dairy
conglomerate Lacteos Brasil SA LBR, one of LBR's main shareholders said on
Thursday. In a statement on Thursday Parmalat said exclusive talks were under
way with Lacteos. 
    
    AUTOGRILL 
    The highways group said its investor day to present retailing spin off World
Duty Free Group (WDFG) has been delayed to Sept. 10 from Sept. 9. 
        
    FLSMIDTH 
    The Danish engineering group FLSmidth & Co is expected to report a 19
percent increase in second-quarter operating profit to 384 million Danish crowns
($68.7 million), a Reuters survey of analysts showed. 
    
    TELIASONERA 
    Turkish operator Turkcell, in which TeliaSonera owns a 38 percent
stake, posted second-quarter net profits of 556 million lira ($278.89 million)
late on Thursday, roughly in line with the 558.4 million seen by analysts in a
Reuters poll. The company also maintained its guidance for 2013. 
    
    ERICSSON, NOKIA, ALCATEL-LUCENT 
    China Mobile Ltd has awarded initial 4G contracts worth around 20
billion yuan ($3.2 billion), with Chinese firms securing more than half of the
biggest prize in the global telecoms industry this year, industry sources said.
European vendors Ericsson, Alcatel-Lucent and Nokia Solutions and Networks (NSN)
have obtained a share of around 10 percent each, the sources said. 
    
    H&M 
    Gap Inc, a rival of H&M, raised its full year profit forecast and
dividend late on Thursday after reporting a higher second-quarter profit, helped
by the sales gains at its namesake and Old Navy chains and online.