Europe Factors to Watch-Shares set to open steady; Alstom in focus

Thu Jun 12, 2014 2:35am EDT

PARIS, June 12 (Reuters) - European equities were set to open steady on
Thursday as the market's recent sharp rally stalls, while Alstom will be in the
spotlight again after a report saying Hitachi Ltd was set to join the
brawl for the French group's energy business.
    Japan's Nikkei business daily reported that Hitachi is in talks on joining
Mitsubishi Heavy Industries Ltd and Siemens AG's joint bid
for Alstom's unit. 
    At 0624 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were up 0.1-0.2 percent.
    A technical glitch on Thursday morning has forced Euronext to postpone the
start of its regulated cash markets, the operator said.
    "This issue is still under investigation. During this period, members are
currently not able to send orders to the market," the operator of the Paris,
Brussels, Amsterdam and Lisbon stock markets said in a statement.
    European shares have been rallying strongly on the back of fresh measures
from the European Central Bank to boost the region's economic recovery, but
corporate profit warnings on Wednesday and a cut by the World Bank of its global
growth forecast dampened investor appetite for stocks, sparking a pull-back in
Europe and on Wall Street.
    "Many traders used the World Bank's cut to its global growth forecast as an
excuse for a bit of profit taking which resulted in a fairly orderly exit out of
equities," Capital Spreads trader Jonathan Sudaria wrote in a note.
    "Volume did pick up a bit on the way down and there was no apparent interest
from bargain hunters so all the chatter has now turned to how much further we
have to go?"
    
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0626 GMT:
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,943.89  -0.35 %     -6.9
 NIKKEI                              14973.53  -0.64 %   -95.95
 MSCI ASIA EX-JP                       492.61  -0.34 %    -1.66
 EUR/USD                               1.3536   0.03 %   0.0004
 USD/JPY                               102.04  -0.02 %  -0.0200
 10-YR US TSY YLD                       2.640       --     0.00
 10-YR BUND YLD                         1.402       --     0.01
 SPOT GOLD                          $1,260.70   0.04 %    $0.46
 US CRUDE                             $104.68   0.27 %     0.28
 
  > GLOBAL MARKETS-ASIAN SHARES DIP, OIL RISES ON IRAQ WORRIES 
  > WALL ST ENDS LOWER AFTER WORLD BANK CUTS FORECAST 
  > NIKKEI FALLS ON WORLD BANK'S LOWER GROWTH FORECAST 
  > FOREX-EURO HOVERS NEAR 4-MONTH TROUGH; KIWI JUMPS ON RBNZ RATE HIKE 
  > PRECIOUS-PALLADIUM STEADY NEAR 13-1/2 YEAR HIGH ON SUPPLY FEARS 
  > METALS-LME COPPER STEADY NEAR 1-MTH LOW, CHINA SIGNALS MIXED 
  > BRENT CLIMBS ABOVE $110 ON ESCALATING VIOLENCE IN IRAQ  
    
    COMPANY NEWS:
    
    ALSTOM, SIEMENS 
    Hitachi Ltd is in talks on joining Mitsubishi Heavy Industries Ltd
 and Siemens AG's joint bid for Alstom SA's energy
operations, the Nikkei business daily reported, citing a top Hitachi executive.
 
    
    SANOFI 
    French drug maker Sanofi and its partner Regeneron on Thursday said
they had obtained positive phase three results for their Sarilumab rheumatoid
arthritis drug. 
    
    BNP PARIBAS 
    The threat that French bank BNP Paribas could be suspended from clearing
clients' dollar transactions could be disruptive to the international financial
system, the head of the French central bank said on Wednesday. 
    
    IMPERIAL TOBACCO 
    The British tobacco firm is evaluating a deal for assets likely to be
divested from Reynolds American Inc and Lorillard Inc if the two
U.S. tobacco companies proceed with a proposed combination, according to people
familiar with the matter. 
    
    AIRBUS 
    Airbus does not expect any negative impact from the cancellation of 70 A350
aircraft by Dubai's Emirates airline, the chief executive of the European
planemaker said on Wednesday. 
    
    GENERALI, TELECOM ITALIA 
    Insurer Generali, one of four key owners of Telecom Italia, decided to exit
ahead of time a seven-year shareholder agreement to control the Italian phone
company, making room for future new investors. 
    
    HOCHTIEF 
    The group's Australian subsidiary Leighton said it may sell its
John Holland roads and rail business as Hochtief seeks to cut debt and
potentially finance a bid for full ownership. 
    
    NOVARTIS 
    Tokyo prosecutors raided the Japanese unit of Novartis AG on suspicion of
manipulating data to promote the Swiss drugmaker's best-selling blood pressure
drug Diovan, a local Novartis spokeswoman said. 
    
    SPANISH BANKS
    Spain's banks are creating a form of "bad bank" to pool their stakes in
struggling companies, bankers and financial advisers said, in a scheme aimed at
reviving firms hit by the country's deep recession. 
    
    FRAPORT 
    The airline operator said on Thursday that May passenger numbers at its main
hub Frankfurt rose 3.7 percent and cargo was up 6.9 percent.
    
    JENOPTIK 
    The Austrian family Humer aims to sell its 14.01 percent stake in the
company, according to German daily Sueddeutsche Zeitung. There have been
exploratory talks with representatives of the state government of Thuringia, the
paper said, citing financial sources.

 (Reporting by Blaise Robinson; Editing by Alistair Smout)
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.