European Factors to Watch-Shares seen steady, focus on data

Tue Nov 26, 2013 2:39am EST

LONDON Nov 26 (Reuters) - European shares headed for a steady start on Tuesday after rising to a one-week high in the previous session, consolidating ahead of an expected push higher into the new year.

A slew of U.S. data could provide some direction in the near-term. Focus will be on chain store sales data from ICSC/Goldman Sachs at 1245 GMT, housing starts at 1330 GMT, Redbook's retail sales at 1355 GMT, S&P Case/Shiller's home price index for September at 1400 GMT and consumer confidence data for November at 1500 GMT.

"The market is a bit tired and due for some consolidation after recent rally, which was less broad-based," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets.

"Still, after a pause, we see markets moving to new highs going into 2014. The world economy is recovering at a slow pace and monetary policies will remain expansionary for quite some time to come. The ECB is probably going to cut rates once more. This is probably not priced in yet."

At 0730 GMT, futures for the Euro STOXX 50, Germany's DAX and France's CAC were 0.02 to 0.09 percent lower.

Futures for Britain's FTSE 100 were down 0.1 percent. Investors will focus on comments from Bank of England Governor Mark Carney, who will answer questions about monetary policy and the economic outlook from lawmakers on Tuesday, for hints about the timing of any rate hike.

The pan-European FTSEurofirst 300 finished 0.4 percent firmer at 1,302.24 points in the previous session after climbing to a one-week high, while Germany's DAX rose 0.8 percent to close at a new life-time high. In the United States, the Dow Jones index set another record peak.

Some firms could witness sharp share moves after their corporate announcements. German fashion house Hugo Boss said it will not meet its target in core operating profit in 2015, while French spirits group Remy Cointreau warned of a double-digit drop in full-year operating profit.

British water company Severn Trent posted a 5.8 percent drop in first-half underlying pretax profit after operating costs rose due to the adoption of private drains and sewers.

The third-quarter earnings season has disappointed investors. Acccording to StarMine, 49 percent companies on the STOXX Europe 600 have missed their earnings forcasts, while 63 percent have missed revenue predictions, against 42 percent and 43 percent respectively in the previous quarter. -------------------------------------------------------------------------------- > Oil prices stabilise after Iran deal, Asian shares steady > Dow ends at record high; Nasdaq loses grip on 4,000 > Nikkei pulls back from 6-mth high as exporters sag; Fujifilm rises > TREASURIES-Prices rise slightly to start holiday-shortened week > Yen bounces off lows but still seen vulnerable > Gold holds near 1-week high; physical demand drops off > LME aluminium stays near 4-1/2-month lows as inventories weigh > Brent holds near $111 as timing of rise in Iran oil exports unclear

COMPANY NEWS

HUGO BOSS

German fashion house Hugo Boss said on Tuesday it will not meet its target of 750 million euros ($1.01 billion) in core operating profit in 2015.

BAYER

Norwegian drug maker Algeta has received a 336 crown per share preliminary takeover bid from Bayer valuing the company at 14.76 billion crowns ($2.41 billion), it said on Tuesday.

REMY COINTREAU

French spirits group Remy Cointreau warned on Tuesday of a double-digit decline in full-year operating profit because of a slowdown in China that will continue to weigh on demand for its premium cognac in the second half of this fiscal year.

SEVERN TRENT

British water company Severn Trent posted a 5.8 percent drop in first-half underlying pretax profit to 141.3 million pounds on Tuesday after operating costs rose due to the adoption of private drains and sewers.

DAIMLER

The carmaker is planning 30 new cars by 2020, its finance chief Bodo Uebber told Frankfurter Allgemeine Zeitung in an interview. Related news

FRESENIUS, RHOEN-KLINIKUM

Financial sources told Reuters that institutional investors were considering filing a lawsuit against Rhoen-shareholder and medical equipment supplier B. Braun in an ongoing battle for control over the company. Related news and

CREDIT SUISSE

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