Europe Factors to Watch-Shares set to halt sell-off; U.S. jobs data eyed

Fri Dec 6, 2013 2:27am EST

PARIS, Dec 6 (Reuters) - European stocks are set to inch up on Friday
morning, halting a sharp four-day sell-off, as investors await U.S. jobs data,
seeking clues on the outlook for the Federal Reserve's stimulus programme.
    At 0720 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were up 0.2-0.3 percent.
    According to a Reuters survey of economists, nonfarm payrolls, due at 1330
GMT, are expected to have increased by 180,000 last month while the unemployment
rate is seen falling, which could bring the Fed a step closer to start trimming
its massive quantitative easing programme this month. 
    "This will not be enough to cause a December taper, but will probably be the
most friendly outcome for the equity market - not too hot, not too cold is the
line the equity bulls want to run with," IG market strategist Chris Weston wrote
in a note.
    On Thursday, European shares retreated after data showed U.S. gross domestic
product grew at an annualised 3.6 percent in the last quarter, the strongest
pace since the first quarter of 2012, and well ahead of the 3.0 percent growth
expected by economists.
    Shares increased their losses after the European Central Bank left interest
rates unchanged and fell short of unveiling a new round of long-term loans, or
LTRO, while ECB President Mario Draghi said the risks to the region's economic
outlook were skewed to the downside. 
    "After the surprise rate cut in November, the market had been expecting
further aggressive measures from the ECB, so yesterday was a bit of a
disappointment on that front, enough to cool down appetite for Southern Europe
shares," a Paris-based equity and exchange-traded funds trader said.
    Shares in fragrance and flavour maker Givaudan will be in the
spotlight on Friday after Nestle launched the sale of its entire 10
percent stake via an institutional private placement which could be worth 1.145
billion Swiss francs ($1.27 billion). 
    
-------------------------------------------------------------------------------
   MARKET SNAPSHOT AT 0723 GMT:
                                        LAST         PCT CHG    NET CHG
 S&P 500                                1,785.03     -0.43 %    -7.78
 NIKKEI                                 15,299.86    0.81 %     122.37
 MSCI ASIA EX-JP                        552.66       -0.01 %    -0.08
 EUR/USD                                1.366        -0.05 %    -0.0007
 USD/JPY                                102.13       0.34 %     0.3500
 10-YR US TSY YLD                       2.870        --         0.01
 10-YR BUND YLD                         1.867        --         0.01
 SPOT GOLD                              $1,233.30    0.72 %     $8.80
 US CRUDE                               $97.47       0.09 %     0.09
 

  > GLOBAL MARKETS-Shares sluggish, bond yields climb into US data 
  > US STOCKS-Fed uncertainty sends the Dow, S&P 500 down for 5th day 
  > Tokyo's Nikkei share average closes up 0.81 pct 
  > FOREX-Dollar mired near 5-week low ahead of U.S. jobs data 
  > PRECIOUS-Gold set for weekly drop; all eyes on U.S. jobs report 
  > METALS-London copper treads water ahead of U.S. labour report 
  > Brent edges over $111; all eyes on U.S. jobs report 
    
    COMPANY NEWS:
    
    GIVAUDAN, NESTLE 
    Nestle has launched the sale of its entire 10 percent stake in
Swiss fragrance and flavour maker Givaudan, worth 1.145 billion Swiss
francs ($1.27 billion). 
        
    ALCATEL-LUCENT, STMICROELECTRONICS 
    The telecom gear maker will rejoin France's blue-chip CAC 40 index,
replacing STMicroelectronics, market operator NYSE Euronext said on Thursday.
    Separately, Alcatel announced the results of its capital increase, with
final gross proceeds of 956.7 million euros through the issuance of 455.6
million new ordinary shares. 
    
    BANCA CARIGE 
    Ratings agency Standard & Poor's said on Thursday it lowered to "D" from
"CCC-" its rating on a subordinated convertible hybrid bond, due 2015, issued by
Carige, which is one of 15 Italian banks subject to the European Central Bank's
asset review. 
    
    E.ON 
    The German utility sold its catering unit Arena One, which provides food to
the guests of Bayern Munich home stadium, the Allianz Arena, to Austrian firm
Do&Co for an undisclosed price. 
    
    LUFTHANSA 
    Leading European Union states Britain, France and Germany propose scrapping
a plan to make all aircraft pay a carbon charge for using EU airspace, documents
seen by Reuters show. 
    
    VOLKSWAGEN 
    Brazilian steelmakers are proposing a price increase between 7-10 percent
for local automakers including Volkswagen, a source familiar with negotiations
told Reuters on Thursday. 
    
    SGL CARBON 
    The company placed 250 million euros worth of senior secured notes due 2021
with a coupon of 4.875 percent annually, partially extending the debt maturity
profile into 2021 and providing additional financial flexibility. 
    
    SKY DEUTSCHLAND 
    The German pay-TV operator will buy all of Constantin Sport Holding's TV
production company PLAZAMEDIA as well as a 25.1 percent stake in Sport1 GmbH and
Constantin Sport Marketing GmbH. 
    
    GDF SUEZ 
    The French energy company said it had won the right to explore six
additional onshore blocks for natural gas in the Brazilian state of Bahia in
partnership with Petrobras.
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