European Factors to Watch-Shares to rise, set for 8th week of gains

Fri Jun 6, 2014 2:23am EDT

EDINBURGH, June 6 (Reuters) - European stocks were seen edging higher on
Friday, poised for their 8th straight week of gains after new central bank
stimulus measures boosted shares across the globe and left U.S. indexes at
all-time highs.
    At 0616 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were 0.1-0.2 percent.
    The Dow and the S&P 500 both ended at new highs on Thursday
after the European Central Bank cut rates to record lows and pledged to do more
if needed to fight off the risk of deflation. 
    Euro zone shares also rose on Thursday, led by banks in peripheral
countries, as the European Central Bank unveiled a string of measures to fight
low inflation and boost the currency bloc's economy.   
    However, gains may be made in light volumes, with European traders seemingly
less impressed by the ECB action - which stopped well short of money printing
known as "quantitative easing" - and focus shifting to a U.S. jobs report which
is considered more uncertain than usual.
    While the median forecast is for a solid jobs gain of 218,000 when U.S.
nonfarm payrolls is released at 1230 GMT, estimates range from as little as
110,000 to as high as 325,000. 
    That would be a deceleration from April's outsized 288,000 job gain, when
hiring was still bouncing back from a winter lull, and some expected an even
weaker number after private sector hiring missed expectations on Wednesday.
  
   "April's strong reading may have set the bar too high, especially given the
marginal expansion indicated by the leading indicators," Matt Weller, senior
technical analyst at GFT Markets, said in a note, cautioning that a number much
below his 184,000 estimate would see stocks sell off. 
    "If we do see a disappointing reading (<180k), the U.S. dollar and global
equities may pull back after rallying sharply over the past month."
    The FTSEurofirst 300 is set for its eighth straight week of gains,
rising in recent months as expectations of ECB action mounted.
    
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
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  MARKET SNAPSHOT AT 0509 GMT: 
    
                                                LAST     PCT CHG  NET CHG
 S&P 500                                    1,940.46      0.65 %    12.58
 NIKKEI                                      15084.3      0.03 %     4.93
 MSCI ASIA EX-JP                              490.13      0.26 %     1.29
 EUR/USD                                      1.3657     -0.01 %  -0.0001
 USD/JPY                                      102.31     -0.07 %  -0.0700
 10-YR US TSY YLD                              2.582          --     0.00
 10-YR BUND YLD                                1.405          --    -0.01
 SPOT GOLD                                 $1,254.31      0.08 %    $1.02
 US CRUDE                                    $102.55      0.07 %     0.07
  > GLOBAL MARKETS-Asia offers muted applause for ECB            
  > US STOCKS-Dow, S&P close at records; payrolls in focus         
  > Nikkei steadies after hitting 2-mth high on ECB cuts        
  > TREASURIES-Prices gain after ECB rate cuts                
  > FOREX-Euro holds firm after post-ECB short-covering        
  > PRECIOUS-Gold firms after ECB policy easing            
  > METALS-LME copper set for weekly fall; port probe casts shadow    
  > Brent steady under $109, set for 2nd weekly loss            
    
    COMPANY NEWS
    
    BNP PARIBAS 
    U.S. authorities negotiating with BNP Paribas over alleged sanctions
violations at one point suggested that France's biggest bank pay a penalty as
high as $16 billion, according to people familiar with the matter.
 
    New York's banking regulator has asked one of BNP Paribas's chief operating
officers to leave as part of a settlement over sanctions violations, according
to a person familiar with the matter. 
    President Barack Obama dismissed on Thursday any prospect that he might
intervene in the case of BNP Paribas bank, which faces a possible huge fine for
U.S. sanctions busting, despite pressure from his French counterpart.
 
    
    VALEO /VALLOUREC 
    French auto parts maker Valeo will be added to the CAC 40 index 
while pipe and tube maker Vallourec will be removed, the Expert
Indices Committee of Euronext, a subsidiary of Intercontinental Exchange, said
on Thursday.
    
    ZODIAC AEROSPACE 
    The aerospace supplier said it finalised the acquisition of U.S. VIP cabin
interiors company Greenpoint Technologies, which employs 450 people and has
annual revenue of around $150 million. 
    
    VINCI 
    The construction company said it won a contract worth $187 million to widen
a section of the I-85 interstate highway in North Carolina. 
    
    DEUTSCHE BOERSE 
    Deutsche Boerse is considering the sale of its International Securities
Exchange (ISE), a source familiar with the company's thinking said on Thursday.
 
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    COMMERZBANK 
    Commerzbank is well prepared for European bank stress tests, Chief Executive
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    MONTE DEI PASCHI 
    The Tuscan lender priced its upcoming rights issue at a big discount as it
sought to lure investors for a vital cash call meant to avert nationalisation.
    In a statement late on Thursday, the bank said it would offer new shares in
the bank at 1 euro each, or a 35.5 percent discount to the theoretical ex-rights
price calculated on Thursday's closing stock price. 
    
    BANCA POPOLARE DI SONDRIO 
    The mid-sized lender priced its 350-million euro cash call, due to start on
Monday, at a 29.3 percent discount to the TERP, it said late on Thursday.
    
    ALITALIA, INTESA SANPAOLO, UNICREDIT 
    The airline is expected to give an initial green light to a tie-up with
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 (Reporting by Alistair Smout; Editing by Gopakumar Warrier)