European Factors to Watch-Profit-taking seen before US jobs data
LONDON, Sept 6 (Reuters) - European share prices, on track for their best week in nearly two months, are seen vulnerable to some profit-taking on Friday as investors adjust positions ahead of a key U.S. jobs data release which could determine when the Federal Reserve starts winding down on its money printing programme. Financial spreadbetters expect Britain's FTSE 100 to open down 15 to 18 points, or as much as 0.2 percent and Germany's DAX to ease 8 to 10 points, or around 0.1 percent. France's CAC 40 is seen flat to 4 points higher. That should also push the FTSEurofirst 300 slightly lower, after a rise of some 2.4 percent so far this week which has put the broad index on track for its best weekly showing since mid-July. The U.S. non-farm payrolls report at 1230 GMT will be scrutinised for clues on whether the recovery is strong enough to allow the Federal Reserve to start reducing its asset purchases stimulus programme as soon as this month. The world's biggest economy is expected to have added 180,000 non-farm jobs last month, keeping the unemployment rate steady at 7.4 percent. Such a level of job growth is consistent with the EuroSTOXX 50 index being around the 2,700 point level, according to Societe Generale's long-term fair value models, which suggest the index is currently around 2.6 percent overvalued. The Fed has indicated that it will likely end asset purchases when the unemployment rate falls to 7 percent, and may start raising interest rates once it gets down to 6.5 percent. -------------------------------------------------------------------------------- MARKET SNAPSHOT AT 0502 GMT: LAST PCT CHG NET CHG S&P 500 1,655.08 0.12 % 2.00 NIKKEI 13,868.44 -1.39 % -203.18 MSCI ASIA EX-JP 518.06 0.08 % 0.41 EUR/USD 1.3132 0.11 % 0.0014 USD/JPY 99.72 -0.36 % -0.37 10-YR US TSY YLD 2.917 -- 0.02 10-YR BUND YLD 1.975 -- 0.04 SPOT GOLD $1,371.51 -- -$4.56 US CRUDE $108.36 -0.01 % -$0.01 > GLOBAL MARKETS-Dovish ECB weighs on euro, shares await U.S. jobs > US STOCKS-Wall St ticks up on data but Fed caution caps gains > Nikkei drops on profit-taking in Olympics-related shares; NTT DoCoMo up > TREASURIES-U.S. 10-year yield nears 3 pct; data hint at Fed taper > FOREX-Dollar near 7-wk high as US data fans Sept tapering bets > PRECIOUS-Gold heads for 2nd week of losses; U.S. jobs report in focus > METALS-Copper inches higher on economic optimism; eyes U.S. jobs > Brent hovers above $115 ahead of U.S. data, Syria decision COMPANY NEWS: THYSSENKRUPP The German steelmaker is making final preparations for a capital-raising it could launch as soon as it has decided on a plan for its ailing Americas business, banking sources said. FIAT Fiat SpA may have to wait until 2015 before a judge will decide the price the Italian automaker would have to pay to buy out a minority shareholder of its Chrysler business, according to court filings. PEUGEOT The French carmaker is pressing unions for a pay freeze next year and wage restraint in 2015-16, workers' representatives said. GEMALTO The French smart cards maker said on Thursday it aims to double its profit from operations and expects to achieve average double-digit annual revenue growth through 2017. TELECOM ITALIA Investor Marco Fossati urged Telefonica to decide what to do with its key stake in the Italian company and said time was ripe to join a consolidation wave in the telecoms industry.