Europe Factors to Watch-Shares set to bounce; Barclays, BNP eyed

Thu Jun 26, 2014 2:36am EDT

PARIS, June 26 (Reuters) - European stocks were set to rise on Thursday,
bouncing back from the previous session's sell-off and tracking gains on Wall
Street, with shares of Barclays in focus after The New York Attorney
General filed a lawsuit against the UK lender.
    French lender BNP Paribas will also be in focus after sources said
the lender is likely to be suspended from converting foreign currencies to
dollars on behalf of clients in some businesses for as long as a year. This
would be an untested and severe penalty for the French bank accused of
persistently violating U.S. sanctions laws. 
    Late on Wednesday, the New York Attorney General filed a securities fraud
lawsuit against Barclays for giving an unfair edge to its U.S. high-frequency
trading clients even as it claimed to be protecting other customers from the
traders. 
    At 0633 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were up 0.2-0.3 percent.
    Data showing weak U.S. economic growth sparked a pull-back in European
bourses on Wednesday - with the FTSEurofirst 300 index of top European
shares hitting a one-month low - but later on Wall Street investors brushed
aside the initial concerns, and speculation that the weak data would push back
the first interest rate hikes helped the market inch higher.
    Thursday's rebound could be capped, however, by violence in Iraq, traders
said. Militants attacked one of the country's largest air bases and seized
control of several small oilfields, while U.S. special forces troops and
intelligence analysts arrived to help Iraqi security forces counter a mounting
Sunni insurgency. 
          
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0633 GMT: 
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,959.53   0.49 %     9.55
 NIKKEI                              15308.49   0.27 %    41.88
 MSCI ASIA EX-JP                       492.01   0.96 %     4.67
 EUR/USD                               1.3636   0.05 %   0.0007
 USD/JPY                               101.76   -0.1 %  -0.1000
 10-YR US TSY YLD                       2.556       --     0.00
 10-YR BUND YLD                         1.272       --     0.01
 SPOT GOLD                          $1,316.90  -0.16 %   -$2.10
 US CRUDE                             $106.71    0.2 %     0.21
 
  > GLOBAL MARKETS-SHARES UP, BONDS IN DEMAND AMID HUNT FOR RETURNS 
  > US STOCKS-WALL ST GAINS AFTER SUPREME COURT RULING ON BROADCASTERS 
  > NIKKEI EDGES UP ON WALL ST RISE, FED RATE VIEWS; RAKUTEN SHINES 
  > FOREX-DOLLAR WILTS IN WAKE OF DOWNBEAT U.S. GDP REVISION 
  > PRECIOUS-GOLD SLIPS AS ASIAN STOCKS CLIMB, BUT HOLDS ABOVE $1,300 
  > METALS-LONDON COPPER CLIMBS TOWARDS 4-MTH PEAK ON TIGHT SUPPLY 
  > BRENT DROPS BELOW $114 AS WORRIES EASE OVER IRAQ SUPPLY THREAT 
    
    COMPANY NEWS:   
     
    BARCLAYS 
    The New York Attorney General on Wednesday filed a securities fraud lawsuit
against Barclays PLC for giving an unfair edge to its U.S. high-frequency
trading clients even as it claimed to be protecting other customers from the
traders. 
    
    BNP PARIBAS 
    BNP Paribas is likely to be suspended from converting foreign currencies to
dollars on behalf of clients in some businesses for as long as a year, according
to sources familiar with the matter, an untested and severe penalty for the
French bank accused of persistently violating U.S. sanctions laws. 
    
    CARPHONE WAREHOUSE DIXONS RETAIL 
    Carphone Warehouse, Europe's largest independent mobile phone company, and
Dixons Retail, Europe's No. 2 consumer electronics retailer, on Thursday both
posted big jumps in earnings ahead of their planned merger later this year.
 
    
    VODAFONE 
    Vodafone is set to gain unconditional EU approval for its 7.2-billion-euro
($9.79 billion) bid for Spain's largest cable operator Ono as regulators do not
have competition concerns, three people familiar with the matter said on
Wednesday. 
    
    GDF SUEZ 
    Texas electric regulators are not aware of any investigation of trading
activity in the state's $30 billion wholesale market by the U.S. Commodity
Futures Trading Commission, an agency spokesman said on Wednesday. 
    
    SANOFI 
    The French drugmaker is in the "very early stages" of considering the sale
of a portfolio of older drugs, managers told an internal meeting on Wednesday,
according to union representatives who were present. 
    
    B.WIN PARTY 
    Online gambling company Bwin.Party Digital Entertainment Plc is considering
selling itself or part of the company as part of a strategic review, Bloomberg
reported on Thursday citing two sources. 
    
    EDF, VEOLIA 
    EDF won approval from the European Commission to take over the French
businesses of energy services firm Dalkia from Veolia Environnement, clearing a
regulatory hurdle to the deal announced late last year. 
    
    PERNOD RICARD 
    The board of the drinks company has decided to distribute an interim cash
dividend of 0.82 euros per share for the current 2013/14 financial year, equal
to 50 percent of the total dividend paid out in the previous financial year.
 
    
    METRO 
    The retailer said on Wednesday it was putting on hold plans to invest in
combined heat and power units in Germany because it could not ensure their
viability if new changes to the country's system of green power subsidies went
ahead. 
    
    TUI 
    Shipping group Hapag Lloyd, of which TUI is a major shareholder,
is planning further takeovers. "This industry is crying out for consolidation,"
outgoing CEO Michael Behrendt said on Wednesday. Hapag Lloyd signed a deal with
Chilean shipper Compania SudAmericana de Vapores to create the world's
fourth-largest container-shipping company in April.

 (Reporting by Blaise Robinson; Editing by Sudip Kar-Gupta)
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