Europe Factors to Watch-Shares set to track Wall Street selloff
PARIS, Jan 14 (Reuters) - European stocks were set to fall on Tuesday, tracking sharp losses on Wall Street following a number of disappointing earnings and outlook statements which raised concern about profit growth. At 0709 GMT, futures for Euro STOXX 50, for UK's FTSE 100, for Germany's DAX and for France's CAC were down 0.7-0.9 percent. The Dow Jones industrial average fell 1.1 percent, the S&P 500 lost 1.3 percent and the Nasdaq Composite dropped 1.5 percent after a number of mid-sized companies including SodaStream, Lululemon Athletica , Express Inc and Aaron's posted weak earnings or forecasts on Monday. According to Thomson Reuters data, almost 10 out of every 11 companies that have had pre-announcements for the current earnings season from S&P 500 companies have lowered estimates. "We've been focusing a lot on macro data, but the real test is coming, with the earnings season starting, and the market might have been too optimistic about earnings recovery," a Paris-based equity and exchange-traded funds (ETFs) trader said. The focus will be on JPMorgan and Wells Fargo, set to post quarterly results before the opening bell on Wall Street on Tuesday. On the M&A front, shares in German drugs distributor Celesio were indicated 12.5 percent lower in premarket trade after suitor McKesson failed to garner enough shares for its takeover bid to succeed. French equities will also be in the spotlight as President Francois Hollande is set to unveil plans to revive the weak French economy at a news conference on Tuesday. So far this year, France's blue-chip stock index CAC 40 is down 0.8 percent, the worst performance among European bourses in 2014 and a sharp contrast with euro zone peripheral markets, with Spain's IBEX up 4.4 percent, Italy's FTSE MIB up 3.8 percent, Portugal's PSI 20 up 8.9 percent and Greece's ATG up 11 percent. (graphic:). "With President Hollande's popularity at record lows in the polls and the current status quo looking increasingly unsustainable, we think the French President is on the eve of implementing a policy shift as radical as that made in 2003 by German Chancellor Schroeder with his 'Agenda 2010' and French President Mitterrand's game changer in March 1983," Alain Bokobza, head of global asset allocation strategy at Societe Generale CIB, wrote in a note. "From a market perspective, an acceleration of spending cuts to reduce corporate taxes should be welcomed by the equity market and keep the CAC 40 on track to reach our forecast of 5,100 by year-end." ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0710 GMT: LAST PCT CHG NET CHG S&P 500 1,819.20 -1.26 % -23.17 NIKKEI 15,422.40 -3.08 % -489.66 MSCI ASIA EX-JP 457.71 -0.66 -3.02 EUR/USD 1.3657 -0.1 % -0.0014 USD/JPY 103.37 0.38 % 0.3900 10-YR US TSY YLD 2.838 -- 0.01 10-YR BUND YLD 1.806 -- -0.01 SPOT GOLD $1,252.88 -0.01 % -$0.18 US CRUDE $92.01 0.23 % 0.21 > GLOBAL MARKETS-Japanese stocks tumble as yen hits 4-week high > US STOCKS-Wall St slides on caution ahead of earnings > Tokyo's Nikkei share average closes down 3.08 pct > FOREX -Yen takes breather as short-covering rally loses steam > Gold near 1-mth high as dollar, stocks drop on US growth fears > METALS-LME copper edges up, traders wary on growth > Brent slips towards $106 as supply outlook brightens COMPANY NEWS: CELESIO U.S. drugs wholesaler group McKesson said on Monday it had failed to win enough support for a $8.4 billion offer to buy German distributor Celesio, leaving it empty-handed in a sector where cross-border consolidation is accelerating. LINDT & SPRUENGLI The Swiss chocolate maker said market share gains in all major markets and product categories helped its full-year sales rise 8.6 percent, ahead of overall market growth and analyst expectations. GEBERIT The sanitary equipment maker said sales rose 4.8 percent to 525.3 million Swiss francs in the fourth quarter, meeting expectations. The group said its EBITDA margin should have risen to between 25 and 26 percent in 2013. DAIMLER The top executive at Daimler said on Monday the German automaker was likely to achieve its cost-savings target earlier than expected - and he declined to rule out the possibility the savings might exceed the company's goals. EDF, GDF SUEZ The companies have reached an agreement with the Belgian government on the 10-year extension of the Tihange 1 reactor, Les Echos said. FIAT Sergio Marchionne has pledged to stay on as chief executive of Fiat-Chrysler for at least three years to see through the full merger of the Italian carmaker and its U.S. business, and a new strategy to turn around its loss-making operations in Europe. MONTE PASCHI DI SIENA The bank said on Monday its consumer credit unit, Consum.it, had sold a loan portfolio worth 551 million euros as part of a broader restructuring plans. BANCA POPOLARE DI SPOLETO The Italian small-sized lender, which has been put under special administration by the Bank of Italy, denied on Monday it had reached a deal to be bought by peer Banco di Desio e della Brianza. DEUTSCHE BANK, COMMERZBANK Germany's banks have made little progress on efforts to curb bonuses of top managers ahead of new European rules designed to control the type of risky behaviour that fuelled the financial crisis, the country's financial watchdog said on Monday. SACYR Spanish construction firm Sacyr's dispute over work on the expansion of the Panama Canal will not have a significant impact on the company's earnings and is not putting its solvency at risk, its chairman said on Monday. RENAULT Nissan Motor Co Ltd expects to outpace overall growth in the U.S. automobile market, which it sees rising by 1 percent at most in 2014, as the Japanese automaker meets pent-up demand for the Sentra, Nissan's chief planning officer said. AIR FRANCE-KLM Troubled Italian airline Alitalia will ask banks for additional funding and could be forced to launch another share issue if the business does not perform as planned, its chief executive said.