UPDATE 1-European Factors to Watch-Focus on U.S. jobs data at end of strong week
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. At 0620 GMT, futures for Euro STOXX 50 and UK's FTSE 100 were flat, while those for Germany's DAX and for France's CAC were 0.1 to 0.2 percent lower. That could 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, though traders pointed to the risk of stronger jobs growth after recent upside surprises in other data. 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. "Everything now is focused on what happens to the tapering, so too good a (jobs) number will mean more tapering and will mean tapering is definitely on the table. We've had a good run and I think financials will probably be under pressure as will housing stocks," said Nick Xanders, strategist at BTIG. "Equally if the numbers are poor, that will probably be seen as a positive (for equities) as we are still hooked on tapering." -------------------------------------------------------------------------------- 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 518.64 0.19 % 0.99 EUR/USD 1.3128 0.06 % 0.0009 USD/JPY 99.75 -0.36 % -0.36 SPOT GOLD $1,367.50 -- $0.22 US CRUDE $108.22 -0.14 % -$0.15 > 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: GLAXOSMITHKLINE Japan's Suntory Beverage & Food Ltd is in advanced talks to buy the Lucozade and Ribena brands from GlaxoSmithKline for more than 1 billion pounds ($1.6 billion) in a deal that would pre-empt an auction of the iconic British drinks, two people close to the process said. 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.
- Pennsylvania newlyweds "just wanted to murder someone together:" police
- War veteran detained by North Korea arrives in U.S. |
- WTO overcomes last minute hitch to reach its first global trade deal
- Ice storm causes blackouts, delays in Texas, Arkansas
- China's parliament: Japan has "no right to criticize" air defense zone