Europe Factors to Watch-Shares set to rise; eyes on euro zone data

Mon Jun 23, 2014 2:26am EDT

PARIS, June 23 (Reuters) - European stocks were set to inch higher on
Monday, tracking a rally in Asian shares after upbeat Chinese factory figures,
although gains could be limited ahead of similar data for the euro zone.
    French lender BNP Paribas will be in the spotlight after sources
said the bank is likely to pay $8 billion to $9 billion as part of a potential
settlement with U.S. authorities over violations of sanctions. 
    Alstom will also be in focus after the French government secured
an option to buy 20 percent of the firm from construction group Bouygues
, in an eleventh-hour deal clearing the way for the agreed sale of
Alstom's energy business to General Electric. 
    At 0621 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.
    The HSBC/Markit Flash China Manufacturing Purchasing Managers' Index rose
more than expected to 50.8 in June from May's final reading of 49.4, beating a
Reuters poll estimate of 49.7 and moving above the 50-point level that separates
growth in activity from contraction. 
    "The flash PMI for June showed that the economy has turned the corner. Both
domestic and external demand kept expanding," HSBC analysts wrote in the PMI
report. 
    Investors were also awaiting manufacturing data for France, Germany and the
euro zone due on Monday.
    Tech shares could see some support from reports saying that Oracle Corp
 is likely to buy Micros Systems in a $5 billion deal.
 
    Overall gains in European stocks on Monday could be limited, however, as
investors continued to fret about violence in Iraq, which boosted Brent crude
prices to above $115 a barrel on fear of possible disruptions to supply from
Iraq where Sunni insurgents seized control of more towns over the weekend.
 
           
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
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  MARKET SNAPSHOT AT 0625 GMT: 
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,962.87   0.17 %     3.39
 NIKKEI                              15369.28   0.13 %    19.86
 MSCI ASIA EX-JP                       489.15   0.21 %     1.01
 EUR/USD                               1.3609   0.07 %   0.0010
 USD/JPY                               101.93  -0.13 %  -0.1300
 10-YR US TSY YLD                       2.624       --     0.00
 10-YR BUND YLD                         1.352       --     0.01
 SPOT GOLD                          $1,313.15  -0.09 %   -$1.17
 US CRUDE                             $107.33   0.47 %     0.50
  > GLOBAL MARKETS-CHINA PMI BOOSTS ASIAN STOCKS, OIL UP ON IRAQ 
  > US STOCKS-DOW, S&P 500 END AT RECORD HIGHS; S&P UP FOR 6TH DAY 
  > NIKKEI HITS 5-MTH HIGH ON FED POLICY HOPES, CHINA PMI 
  > FOREX-EURO EDGES LOWER, EYES ON CHINA DATA 
  > PRECIOUS-GOLD SLIPS ON STRONGER EQUITIES, BUT HOLDS ABOVE $1,300 
  > METALS-SHANGHAI COPPER HITS 4-MTH HIGH; CHINA RECOVERY FUELS GAINS 
  > BRENT NEAR 9-MONTH TOP ABOVE $115 ON IRAQ TENSIONS 
    
    COMPANY NEWS:
    
    BNP PARIBAS 
    French bank BNP Paribas SA is likely to pay $8 billion to $9 billion as part
of a potential settlement with U.S. authorities over violations of sanctions,
according to a person familiar with the matter. 
    
    ALSTOM, BOUYGUES, SIEMENS 
    France won an option to buy 20 percent of Alstom from construction group
Bouygues, in an eleventh-hour deal clearing the way for the agreed sale of
Alstom's energy business to General Electric. 
    
    CARREFOUR, DIA 
    Spain's supermarkets group Dia, the world's third-largest
hard-discounter, on Friday said it had reached a preliminary deal with France's
Carrefour over the sale of its loss-making French unit.
 
    
    E.ON 
    The German regional state of Lower Saxony approved the restart of E.ON's
northern German Grohnde nuclear reactor after queries about safety at the unit
had prolonged the annual summer maintenance standstill. 
    
    CLUB MED 
    Investindustrial, the private equity fund led by Italian businessman Andrea
Bonomi, has launched legal actions to challenge a decision by French stock
market watchdog AMF giving Investindustrial until June 30 to make a bid for
French holiday operator Club Med, daily Le Figaro reports. A ruling on the
challlege is expected on July 2. 
    
    VIVENDI, NUMERICABLE 
    France's Vivendi said on Friday it had signed a definitive
agreement on the sale its telecom unit SFR to cable company Numericable
 after "constructive" talks with labour unions. The closing of the deal
is subject to other conditions. 
    
    EDF 
    The French government plans to raise regulated electricity tariffs by less
than 5 percent in the autumn, Prime Minister Manuel Valls said on Friday.
 
    
    NESTLE 
    Swiss food giant Nestle aims to boost its share of direct commodity
purchases to ensure it keeps a tight grip on quality and supply chains, Chairman
Peter Brabeck told an Austrian newspaper. 
    
    VEOLIA ENVIRONNEMENT 
    The global leader in water and waste management, has a little local
difficulty: an ailing France-Corsica ferry operator that weighs on its shares,
gives its CEO nightmares and puts the brakes on its strategic plans.
 
    
    PSA PEUGEOT CITROEN 
    Citroen's C4 Cactus is more than just another compact car. It's a manifesto
on wheels for the brand's move down-market as parent PSA Peugeot Citroen
struggles to return to profit. 
    
    ENI 
    Libya's eastern Hariga oil port has reopened and received a first tanker
loading oil, a spokesman for state-owned National Oil Corp (NOC) said on Sunday,
adding that the western El Feel oilfield, operated by NOC and Eni, was working
"normally", producing 95,000 bpd. 
    
    SALVATORE FERRAGAMO 
    Italian luxury leather goods maker Salvatore Ferragamo expects group results
to improve in the second half of 2014 from the first six months on the back of
strong demand in China and in global travel retail, its chief executive said on
Sunday. 
    
    BMW BMWG.DE
    BMW said on Monday it extended its partnership with Chinese joint
venture partner Brilliance China Automotive Holdings Ltd 1114.HK by 10 years.
 

 (Reporting by Blaise Robinson; Editing by James Regan)
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