Europe Factors to Watch-Shares seen building on U.S. strength
LONDON Dec 23 (Reuters) - European shares are seen edging higher on Monday, extending Friday's gain as sentiment was supported by record highs in U.S. stocks on the back of strong U.S. data.
At 0730 GMT, futures for the Euro STOXX 50, Britain's FTSE 100 , Germany's DAX and France's CAC were up between 0.3 and 0.5 percent.
Trade this week is set to be light, with major European markets shut on Wednesday and Thursday for a holiday.
Better-than-expected GDP data from the United States supported gains on the pan-European FTSEurofirst 300 on Friday, which closed up 0.5 percent at 1,287.61 points.
After Friday's European market close, the U.S. blue chip S&P 500 posted a record closing high, with investors hoping the better growth outlook meant the economy could withstand a slowdown in monetary stimulus.
The FTSEurofirst managed its best week in eight months as the U.S. Federal Reserve's decision to slow its asset purchases while extending its commitment to low interest rates was well received by the market.
On Sunday, the International Monetary Fund said it predicted the U.S. economy would expand at a faster pace in 2014, citing positive economic data and some signs of compromise in Congress.
Investors were set to focus on the University of Michigan sentiment index and U.S. core PCE prices on Monday for further evidence that the Fed's "tapering" of its stimulus was not premature.
"Core PCE is the Fed's preferred measure of inflation and has, to a large degree, overtaken employment as the key trigger for raising the funds rate," Chris Weston, chief market strategist at IG, said in a note.
"The fact that the Fed believes inflation will rebound modestly over time and has cut its bond purchase program by $10 billion to adjust to the more positive employment picture and assess inflationary forces, puts this number firmly in play."
The euro zone blue chip Euro STOXX 50 is just 1.8 percent off of its November high, which was itself a five year high.
By sector, retailers could be in the spotlight as the festive shopping season draws to a close, after John Lewis posted a rise in year-on-year sales as the unlisted British department store continues to outperform its rivals.
-------------------------------------------------------------------------------- > Asia shares inch ahead, China money rates spike anew > Wall St gains on GDP data; indexes post strong week > Nikkei bounces to hit 6-year closing high > TREASURIES-Yields at high end of range draw buyers > FOREX-Dollar drifts as market succumbs to holiday mode > PRECIOUS-Gold lingers around $1,200, taper worries remain > METALS-London copper steady in holiday-shortened week > Brent hits 2-week high above $111, threat to S. Sudan supply
The bank's co-CEOs, in an interview with German newspaper Sueddeutsche Zeitung, signalled more money might have to be set aside for potential future litigation costs.
Japanese tech and telecoms group SoftBank Corp's Chief Executive Masayoshi Son held talks with at least five banks to finance a possible bid by Sprint Corp to buy a majority stake in T-Mobile US Inc in 2014, Bloomberg reported, citing sources.
The maker of synthetic rubber expects earnings to rise again in 2014, helped by an ongoing cost cutting programme, Chief Executive Axel Heitmann was quoted as saying by Sunday paper Frankfurter Allgemeine Sonntagszeitung.
The maker of Mercedes-Benz cars has hedged its holding in Tesla Motors Inc against a decline in value over the next three years, as it seeks to broaden its alliance with the U.S. electric-car maker.
The engineering group has received approval from the German rail regulator for the first four of 16 third-generation ICE high-speed trains to be delivered to rail company Deutsche Bahn, daily Frankfurter Allgemeine Zeitung cited sources as saying. The trains were initially due to be delivered more than two years ago.
The insurer said late on Friday it had concluded an agreement with IBM regarding support for the operation of its data centres. IBM will provide IT operations services for Allianz from April 1, it said.
The sporting goods maker aims to sell more Brazuca-branded soccer balls for the world cup in Brazil than the 13 million Jabulani balls it sold for the 2010 world cup in South Africa, Adidas CEO Herbert Heiner told weekly Welt am Sonntag.
Swatch said a Dutch arbitration court sentenced Tiffany & Co. to pay it 402 million Swiss francs ($448.79 million) in damages in a lawsuit over their failed joint venture to produce and market watches.
The airline has received a firm offer from Germany's Intro Aviation GmbH to purchase its CityJet regional airline as well as its subsidiary VLM. Air France-KLM said the deal, for which no financial details were given, was expected to close in the first quarter of 2014.
Spain's stock market regulator on Friday said it was ready to take action against a series of short sales in Bankia shares which took place when the bank hiked capital earlier this year to receive 18 billion euros in European funds.
The luxury goods and sportswear group said it will pay on Jan. 24 an interim dividend of 1.50 euros ($2.05) per share, unchanged from a year ago.
Rival Boeing said it won an order from Cathay Pacific Airways Ltd for 21 Boeing 777X jets, valued at more than $7 billion at current list prices.
Telecom Italia's shareholders rejected by a slim majority an attempt by dissident investors to oust its board on Friday, a decision that allows CEO Marco Patuano to pursue his strategy to revive the debt-laden company.
Italian carmaker Fiat resumed talks with union-affiliated healthcare trust Veba last week to buy up the 41.5 percent stake in its U.S. unit Chrysler it does not yet own, a source close to the matter said on Friday.
Generali sold about 3.9 percent of tyremaker Pirelli to United States-based investor Harbor Fund, La Stampa, Messaggero and Il Giornale reported on Sunday, citing market sources.
DIAGEO : Shares in United Spirits Ltd fell as much as 6 percent on Monday after a regional court in India ordered the annulment of the sale of the Indian spirits maker to British group Diageo.
- Malaysia says no evidence missing plane flew hours after losing contact |
- Rescuers seek survivors of NY building collapse; seven dead
- White House tried to mediate dispute between Senate, CIA panel: source
- Missing jet may have strayed to west, Malaysia military says |
- Russia holds war games near Ukraine; Merkel warns of catastrophe |