Europe Factors to Watch-Shares set to bounce; eyes on U.S. jobs data

Fri Jan 10, 2014 2:27am EST

PARIS, Jan 10 (Reuters) - European stocks were set to rise on Friday,
reversing the previous session's dip as data showed a surge in China's imports,
although the market's gains could be limited ahead of the U.S. monthly jobs
report that could shed light on the outlook for the federal Reserve's stimulus
programme.
    Shares in euro zone peripheral markets will be in focus again following
their bumper start of 2014, as data from Thomson Reuters Lipper shows U.S.
investors increased their exposure to European equities in the seven days period
ending Jan. 8.
    Lisbon's PSI 20 is already up 7.9 percent this year, Madrid's IBEX
 up 3.2 percent, Milan's FTSE MIB up 2.8 pct, Athens's ATG
 up 10.9 percent and Dublin's ISEQ up 4.8 percent. Meanwhile, UK's
FTSE 100 is down 0.9 percent year-to-date, Germany's DAX down
1.4 percent and France's CAC 40 down 1.6 percent.
    At 0613 GMT on Friday, futures for Euro STOXX 50, for UK's FTSE 100
, for Germany's DAX and for France's CAC were up 0.4-0.6
percent.
    "There's a bit of hesitation around the 2013-2014 highs for pan-European
indexes such as the Euro STOXX 50, but the potential for a correction is very
limited and the fact that buyers jump in every time there's a pull-back shows
that the medium trend is bullish," Aurel BGC chartist Gerard Sagnier said.
    Shares in European mining and steel companies will be in the spotlight as
U.S. aluminium major Alcoa Inc posted a massive quarterly loss after the
bell on Wall Street on Thursday, as recent declines in aluminum prices led to a
$1.7 billion non-cash impairment charge on smelter acquisitions. 
    The company, which kick-started the U.S. quarterly earnings season, also
issued an outlook for stagnant growth in global aluminum demand. Its shares fell
4 percent in after-hours trade.
    Data on Friday showed China's exports rose 4.3 percent in December, less
than expected, but imports surged 8.3 percent, signalling stronger domestic
demand and China's rebalancing away from a reliance on exports to drive economic
growth. 
    According to a Reuters poll of economists, non-farm payrolls rose by 196,000
jobs last month, but the survey was conducted before data on Wednesday which
showed private sector employers hired staff at the fastest pace in 13 months in
December. 
    Robust data could prompt the U.S. Federal Reserve to move forward with plans
to further wind down its massive quantitative easing programme. In December, the
Fed said it would trim its monthly bond purchases to $75 billion from $85
billion, and many economists expect it to decide on a similar-sized cut at its
next meeting on Jan. 28-29. 
        
------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0718 GMT: 
                                        LAST         PCT CHG   NET CHG
 S&P 500                                1,838.13     0.03 %    0.64
 NIKKEI                                 15,912.06    0.2 %     31.73
 MSCI ASIA EX-JP                        456.44       0.11      0.49
 EUR/USD                                1.3612       0.04 %    0.0006
 USD/JPY                                104.97       0.14 %    0.1500
 10-YR US TSY YLD                       2.969        --        0.00
 10-YR BUND YLD                         1.903        --        -0.01
 SPOT GOLD                              $1,233.44    0.48 %    $5.90
 US CRUDE                               $92.54       0.96 %    0.88
 

  > GLOBAL MARKETS-Asia left adrift by mixed China data 
  > US STOCKS-Wall St finishes flat on caution before U.S. jobs data 
  > Tokyo's Nikkei share average closes up 0.20 pct 
  > FOREX-Dollar stalls ahead of US jobs data as euro regains ground 
  > Gold inches up on softer dollar; all eyes on U.S. jobs report 
  > METALS-Copper edges up; eyes weekly fall 
  > Brent rises toward $107 on supply worries; US jobs data eyed 
    
    COMPANY NEWS:    
    SWATCH GROUP 
    Swatch said it expects dynamic growth this year after market share gains in
its core watch business helped sales rise 9.1 percent last year, slightly less
than expected. 
    
    BANCA MONTE DEI PASCHI DI SIENA 
    Rating agency DBRS keeps bank Monte dei Paschi under review with negative
implications but says its ability to achieve a 3 billion euro capital increase
may be jeopardized due to the uncertain position of senior management, as well
as the effective expiry of the underwriting agreement. 
    
    STATOIL, TULLOW OIL 
    Norwegian energy firm is studying overseas acquisitions to reduce its focus
on Norway and Tullow Oil is among the targets it is studying, Bloomberg
reported late on Thursday, quoting unnamed company sources. 
    
    AXA 
    The French insurer said it had successfully placed a subordinated debt
issuance of 750 million pounds sterling. 
    
    FIAT 
    Fiat could use a mandatory convertible bond as a way of financing
investments after its $4.35 billion deal to buy the rest of Chrysler, the
Italian carmaker's chief executive said in an interview with Italian newspaper
La Repubblica. 
    
    VOLVO 
    Christer Gardell, managing partner of activist fund Cevian, which holds 10.5
percent of votes in Volvo, told business daily Dagens Industri the truck maker's
IT services offering was not a core business and created unnecessary
complications. 
    
    GROUPE BENETEAU 
    The boat manufacturer reported a 5.9 percent like-for-like drop in revenue
for the September to November quarter.
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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