Europe Factors to Watch-Shares seen up, focus on emerging markets

Tue Jan 28, 2014 2:49am EST

LONDON Jan 28 (Reuters) - European shares were set to rebound from one-month lows on Tuesday, with investors seeing value in beaten-down stocks, although concerns that a cut in U.S. stimulus could hurt emerging economies could keep gains under check.

There are expectations that the U.S. Federal Reserve will further reduce its monthly bond purchases by $10 billion, although some people speculate the latest turmoil in emerging markets could prompt the Fed to delay such a move.

The market's focus will also be on whether the Turkish lira will recover further after an emergency meeting of the country's central bank later in the day.

The lira rebounded on Monday following the news of the meeting, although other emerging market currencies remained under pressure, with Brazil's real currency slumping to a five-month low.

There are concerns that disorderly capital flight from emerging markets and signs of slower growth in China could hurt the economic prospects of developing countries, which are dependent on exports and foreign capital and have been the engine of global growth during the past decade.

At 0741 GMT, futures for the Euro STOXX 50, Britain's FTSE 100 , Germany's DAX and France's CAC were up 0.2 to 0.5 percent.

The pan-European FTSEurofirst 300 index fell 0.8 percent in the previous session to a one-month low. The index has fallen nearly 5 percent in a week.

Technology shares in Europe will be in focus a day after lower-than-expected holiday iPhone sales and a weak revenue forecast by Apple renewed fears about Chinese demand and a tepid global market. Its shares fell 8 percent.

The European stock market could get some near-term direction from a raft of earnings releases this week as the fourth quarter reporting season gathers pace. According to StarMine SmartEstimates, which focus on the up-to-date predictions of the historically most accurate analysts, STOXX Europe 600 companies are on average seen missing consensus quarterly earnings forecasts by 2.8 percent.

On Tuesday, Philips, the Dutch healthcare, lighting and consumer appliances group, warned of a tough year ahead, while Germany's Siemens posted a 15 percent jump in fiscal first-quarter core operating profit.

On the data front, focus will be on the UK's first reading of GDP forecast, which is likely to show a growth of 0.7 percent from the previous quarter and a rise of 2.8 percent from a year ago period. GDP numbers will be released at 0930 GMT.

Across the Atlantic, Redbook's U.S. chain store data is due at 1355 GMT, while U.S. chain store retail sales numbers from the International Council of Shopping Centers and Goldman Sachs are due at 1245 GMT.

------------------------------------------------------------------------------ > Asian shares pinned at 5-mth lows, Turkey in spotlight > S&P 500 drops for a 3rd day; Apple down after the bell > Nikkei edges up from 2-month low but Apple suppliers sag > Bond prices fall on profit-taking before Fed meeting > Dollar stabilises vs yen as investors brace for Fed meeting > Gold steady ahead of Fed meet; stimulus outlook in focus > Copper recovers from 7-week lows; tight supply shields > Brent recovers to $107 after steepest fall in 3 weeks

COMPANY NEWS

SIEMENS

Germany's Siemens posted a 15 percent jump in fiscal first-quarter core operating profit as new Chief Executive Joe Kaeser reined in costs and tightened control of major projects at the engineering group.

PHILIPS

The Dutch healthcare, lighting and consumer appliances group warned on Tuesday of a tough year ahead, citing currency gyrations and weak orders in the fourth quarter of last year.

ROYAL BANK OF SCOTLAND

RBS is taking billions of pounds in extra charges to cover the cost of past misdeeds, sending it deep into the red and resulting in its top executives not receiving any bonuses for the past year.

LUFTHANSA

The German airline has contacted the former chief executive of Deutsche Telekom in its hunt for a new chief executive, German media reported on Tuesday.

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SWEDBANK

The Swedish bank unveiled a smaller than expected hike of its dividend and posted fourth-quarter net earnings just short of market expectations as a write-down in its portfolio of repossessed real estate weighed.

KLOECKNER & CO

The company plans to further expand its processing businesses as it shifts from volatile bulk steel trading to more higher-margin services, Handelsblatt reported, citing Chief Executive Gisbert Ruehl.

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SOFTWARE AG

The German business software maker on Tuesday reported a 6 percent fall in its fourth-quarter non-IFRS operating profit to 83.8 million euros ($114.6 million), while sales dropped 2 percent. Poll:

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BRITISH LAND

The real estate investment trust reports a rise in like-for-like occupancy of 30 basis points to 97.1 percent, with 525,000 square feet of lettings and renewals in the last quarter.

CAVERION

The Finnish building services and maintenance company said it expects its core profit to grow up to 34 percent this year as it aims to cut costs and expand in Germany.

For more on the company, click on

MARINE HARVEST

The world's biggest fish farmer begins trading on the New York Stock Exchange on Tuesday, and the firm hopes that exposure to a bigger capital market would lift the stock and erase the discount to traditional meat protein producers.

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AIRBUS GROUP

Low-cost Vietnam airline VietJetAir is set to firm up part of a $9 billion order for up to 92 Airbus aircraft and will announce this at the Singapore Airshow in February, sources familiar with the situation said.

JCDECAUX

The outdoor advertising specialist said that fourth-quarter revenue rose 4.6 percent and its European operations had shown "positive" signs in the second half of 2013.

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