Europe Factors to Watch-Stocks set for mixed open; Germany eyed

Mon Sep 23, 2013 2:27am EDT

PARIS, Sept 23 (Reuters) - European stocks were set for a mixed open on
Monday following a pull-back on Wall Street, although German equities were set
inch higher after the re-election of Chancellor Angela Merkel.
    On Sunday, Angela Merkel won a landslide personal victory in Germany's
election, although her conservatives appeared just short of the votes needed to
rule on their own and may have to convince leftist rivals to join a coalition
government. 
    "Her re-election is a sign of political stability and markets love
stability. It's one less risk event to worry about," said David Thebault, head
of quantitative sales trading, at Global Equities.
    "Her really good score will also give her room for manoeuvre, and hopefully
we will see the focus for Europe shifting from austerity to stimulus. We're just
getting out of the debt crisis, what we need now is measures to boost consumer
spending."
    At 0615 GMT, futures for Euro STOXX 50 were down 0.1 percent, for
UK's FTSE 100 down 0.1 percent, for Germany's DAX up 0.1 percent
and for France's CAC down 0.1 percent.
    U.S. shares dropped on Friday, with the Dow Jones industrial average 
falling 1.2 percent and the S&P 500 losing 0.7 percent, as investors
started to worry about the reasons behind the U.S. Federal Reserve's decision to
maintain its stimulus measures as they heard opposing viewpoints from top Fed
officials. 
    Last week, equity markets worldwide strongly rallied after the Fed decided
not to trim down its quantitative easing programme, but the euphoria was
short-lived as investors started to see the Fed's decision as a sign that the
U.S. economy was losing steam.
    Commodity-related shares could find support on Monday in
better-than-expected manufacturing data from China. Figures showed the country's
factory sector grew at its fastest pace in six months in September, adding
momentum to China's tentative turnaround in economic growth. 
    Investors were also awaiting a raft of manufacturing data from France,
Germany and the euro zone on Monday, set to confirm an improvement in the
region's economy.
    Japanese markets were closed on Monday for a holiday.
     
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  MARKET SNAPSHOT AT 0617 GMT: 
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,709.91  -0.72 %   -12.43
 MSCI ASIA EX-JP                       546.80   0.01 %     0.03
 EUR/USD                               1.3538   0.12 %   0.0016
 USD/JPY                                98.93  -0.37 %  -0.3700
 10-YR US TSY YLD                       2.736       --     0.00
 10-YR BUND YLD                         1.941       --    -0.01
 SPOT GOLD                          $1,324.60  -0.03 %   -$0.39
 US CRUDE                             $104.63  -0.11 %    -0.12
 
  > GLOBAL MARKETS-Shares helped by upbeat China data 
  > Wall St ends down as Fed officials weigh in 
  > FOREX-Euro steady after German election; Aussie up on China flash PMI 
  > PRECIOUS-Gold drops on fresh stimulus fears, weak buying from China 
  > METALS-Copper eases for 2nd day, rising supply weighs 
  > Brent stays above $109 on upbeat China PMI data 
    
    COMPANY NEWS:
    
    DEUTSCHE BANK 
    Germany's biggest lender will warn next week of a slowdown in fixed income
revenue and add to gloomy comments from rivals about recent trading, the
Financial Times reported on Friday. Deutsche Bank declined to comment.
 
    
    FRESENIUS, RHOEN-KLINIKUM 
    The health group on Saturday rebuffed concerns by the Verdi labour union
that as many as 7,000 jobs could be lost over its purchase of hospitals from
rival Rhoen-Klinikum RHKG.DE. 
    
    INFINEON 
    The chipmaker expects to beat its profit target by about a fifth this
financial year as demand from industrial customers is improving, Boersen-Zeitung
reported, citing CFO Dominik Asam. A goal of 5 billion euros of sales may not be
reached until 2016, a year later than originally planned, Asam was quoted as
saying. 
    
    UBI BANCA, CARIPARMA 
    Moody's has placed mid-sized Italian lenders UBI Banca and
Cariparma on review for a ratings downgrade, citing weakening
profitability and deteriorating asset quality. 
    
    RWE 
    Germany's No. 2 utility may cut more jobs than planned as it battles
sluggish demand for energy in a struggling European economy, Die Welt reported
on Saturday, citing an interview with CEO Peter Terium. 
    
    ABERDEEN ASSET MANAGEMENT 
    The group said clients pulled 1.2 billion pounds ($1.92 billion) from its
funds in the two months to the end of August, as investors became nervous ahead
of a decision about the direction of U.S. monetary policy. 
    
    TELEFONICA, TELECOM ITALIA 
    Spain's Telefonica is in talks with other core shareholders to keep Telecom
Italia's ownership structure unchanged for six months, two sources with
knowledge of the situation said on Friday. 
    
    UBS 
    The global asset management division of Swiss bank UBS AG is among the final
bidders for Australian toll road operator RiverCity Motorway Ltd, expected to
sell for more than A$600 million ($563.22 million), people familiar with the
process said. 
    
    CREDIT AGRICOLE 
    The French bank is considering a reorganisation that could bolster the
powers of the regional savings banks that are its main shareholders, two French
newspapers reported. 
    
    AREVA 
    Niger has ordered an audit of the French nuclear group's uranium mines in
the West African country as it presses for a better deal in talks over a new
long-term contract, Mining Minister Omar Hamidou Tchiana told Reuters.
 
    
    FIAT 
    The Italian carmaker is planning to take full control of the diesel engine
manufacturer VM Motori by buying out the half of the company owned by joint
venture partner General Motors, Fiat said on Saturday. 
    
    AIR FRANCE 
The airline's board is reportedly due to meet on Monday to decide whether to bid
for control of Alitalia by the end of this year. 
    
    MONTE DEI PASCHI DI SIENA 
The lender may shut another 200 branches on top of the 400 the bank is already
shedding as part of a new turnaround plan it will unveil next week to meet
European Union demands and try avoid nationalisation, Il Sole 24 Ore said on
Sunday, citing advisors to the bank.
    
    THYSSENKRUPP 
The steelmaker won support from banks to extend credit lines worth 2.5 billion
euros and may be able to reap as much as 1.6 billion euros from a planned share
sale, WirtschaftsWoche reported on Saturday, without citing the source.
ThyssenKrupp declined to comment.
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