European Factors to Watch - Italian uncertainty to cap stocks
LONDON, Oct 2 (Reuters) - European stocks are seen edging lower on Wednesday after their biggest jump in three weeks in the previous session, with traders awaiting news on the fate of Italy's government as well as U.S. economic data before pouring fresh money into shares. At 0628 GMT, futures for the Euro STOXX 50, Britain's FTSE 100 , Germany's DAX and France's CAC were between 0.1 percent and 0.3 percent lower. Most global stock indexes kicked off a new month and a new quarter with gains on Tuesday as investors, for now, appeared confident that a U.S. government's shutdown, which threw hundreds of thousands of federal employees out of work, would be short-lived. With Friday's critical non-farm payrolls report set to be delayed unless U.S. government operations resume, investors were increasing their focus on the ADP employment report for September at 1215 GMT, expected to show an acceleration in the number of jobs added by private employers. The euro zone's Euro STOXX 50 index rose 1.4 percent, the most since Sept. 10, to 2,933.02 points on Tuesday, boosted by positive euro zone data and hopes that a government crisis in Italy would be allayed. The index broke out of a consolidation channel that had trapped it for the past 10 days and its Relative Strength Index, a momentum indicator, bounced off a former declining trend line, pointing to further upside in the coming days, said Philippe Delabarre, an analyst at Trading Central in Paris. "Therefore, the measured move up... should lead the prices towards 3,030 points in the next few days," Delabarre said "Our stop-loss is set at 2,878 points (the index's low onSept 30). Italy's Prime Minister Enrico Letta had not yet decided whether to call a formal vote of confidence in parliament after a scheduled speech on Wednesday as he sought to win over rebels from Silvio Berlusconi's centre-right party. "Even if the government survives, which looks more likely following yesterday's news and rumours, political uncertainty would remain, but the market reaction would be initially positive," Credit Agricole said in a note. "Sentiment going forward will be supported by a solid ADP employment report...though the ongoing US fiscal battle and lingering uncertainties on Italy will limit the upside." Against the backdrop of political turmoil in Italy and volatile market interest rates swayed by U.S. policy uncertainty, the European Central Bank was expected to hold off policy action on Wednesday but keep open the options of an interest rate cut or a bumper cash injectio. -------------------------------------------------------------------------------- MARKET SNAPSHOT AT 0628 GMT: LAST PCT CHG NET CHG S&P 500 1,695.00 0.8 % 13.45 NIKKEI 14,170.49 -2.17 % -314.23 MSCI ASIA EX-JP 539.05 0.5 % 2.69 EUR/USD 1.3516 -0.06 % -0.0008 USD/JPY 97.66 -0.32 % -0.3100 10-YR US TSY YLD 2.637 -- -0.01 10-YR BUND YLD 1.802 -- 0.00 SPOT GOLD $1,289.80 0.3 % $3.81 US CRUDE $101.47 -0.56 % -0.57 > Asian shares up cautiously on hopes for short shutdown > Wall St rebounds as gov't shutdown seen short-lived > Nikkei falls to 2-week low, Abe stimulus fails to inspire > U.S. Treasuries slip on gain in manufacturing > Dollar off 8-mth low after manufacturing boost > Gold near 2-month low as U.S. gov't shutdown sparks selloff > Copper near 1-week lows, U.S. shutdown dims outlook > Brent drops further on worries U.S. shutdown will dent demand COMPANY NEWS K+S Three miners were killed on Tuesday after breathing leaked carbon dioxide following a controlled explosion at a potash mine operated by K+S in the German state of Thueringia. TESCO Britain's biggest grocer said that is 1-/2 years into a recovery plan and posted flat quarterly sales in its home market, close to the upper end of analysts' forecasts. J SAINSBURY Britain's third-biggest grocer met forecasts with a pick-up in quarterly sales driven by growth at local convenience stores and online, outperforming rivals including market leader Tesco. BMW The car maker said it sold 8.3 percent more vehicles in September than in the same month last year. Related news DAIMLER The car maker sold 6.7 percent more Mercedes-Benz cars in the USA in september. Related news CONTINENTAL Standard & Poor's has raised its long-term corporate credit rating on German automotive supplier Continental AG to 'BB+' from 'BB'. The outlook is stable. VOLVO Moody's said it had lowered its outlook on the Swedish truck maker to negative from stable, in a move reflecting that an anticipated recovery in Volvo's financial peformance could take longer than expected given soft market demand. AIR FRANCE-KLM The Franco-Dutch airline is open to helping loss-making Italian carrier Alitalia if the right conditions are met, Air France-KLM's chief executive told French daily Les Echos. VINCI French construction group Vinci said it had been awarded a contract for underground works on the Rennes metro system worth around 320 million euros ($433 million). ALLIANZ The German insurer's Pimco Total Return Fund, the world's largest mutual fund, rose 1.8 percent in September after the U.S. Federal Reserve kept its bond-buying program unchanged, according to preliminary data from investment research firm Morningstar. This marked the best monthly performance for the bond fund since January 2012. SCOR The French reinsurer has completed the acquisition of Assicurazioni Generali's U.S. life reinsurance business for total gross proceeds expected to be $900 million. GDF SUEZ The French utility said it had been awarded a 15-year contract to build and operate Uruguay's first liquefied natural gas (LNG) terminal for the Gas Sayago joint venture. UPM-KYMMENE Uruguay's president Jose Mujica is expected during Wednesday to announce his decision regarding UPM's application for a modification to its environmental permit to allow a higher annual production level at its Fray Bentos pulp mill. The plant is located on the Uruguay River that borders Argentina, and UPM's application has sparked new friction between the countries, following a long dispute around the mill by the time it was built. BANG & OLUFSEN The Danish luxury stereo and television maker posted a fall in sales and a marginally deeper pretax loss in its fiscal first quarter compared to the corresponding period of last year but stuck to its full-year forecast for a moderate rise in revenues.