Europe Factors to Watch-Shares set to open higher; eyes on BNP

Mon Jun 30, 2014 2:20am EDT

PARIS, June 30 (Reuters) - European stocks were seen rising on Monday, set
to end the second quarter on a positive note as investors hope the raft of U.S.
and European macro data due in the week will soothe recent worries over the pace
of economic growth.
    Shares in French bank BNP Paribas will be in focus after sources
said the U.S. Justice Department is expected to announce on Monday a settlement
with BNP involving a record fine of nearly $9 billion over alleged U.S.
sanctions violations. 
    At 0616 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.
    Investors are hoping to see evidence of an economic rebound in this week's
macro data which includes U.S. monthly payrolls report on Thursday, a day early
due to the July 4 holiday. Economists polled by Reuters on average expect jobs
to rise 213,000 in June for the fifth straight month of gains above 200,000.
    "The bulls are hanging in there, hoping that a possible run of good economic
data out of the U.S. this week can reignite sentiment and appetite for risky
assets," Jonathan Sudaria, trader at Capital Spreads, wrote in a note.
    Investors will also focus on a batch of European macro indicators, including
euro zone inflation data for June, due at 0900 GMT on Monday - which should show
inflation stuck at a low 0.5 percent, the ninth consecutive month in the ECB's
"danger zone" of below 1 percent.
    The FTSEurofirst 300 index of top European shares slipped 1.7
percent last week, hurt by downbeat U.S. growth data as well as worries over
violence in Iraq, snapping a 10-week long run of weekly gains - its longest
winning streak since mid-2012.
    The week was also marked by investment outflows, with European equity funds
suffering redemptions of $1.6 billion, their biggest outflows in over a year,
according to data from BofA Merrill Lynch Global Research.
    But despite the week's pull-back, investors remain positive on the
longer-term. A Reuters poll released last week showed that investors are bullish
over the outlook for European shares in the second half of the year, betting on
them extending their rally, helped by the ECB's stimulus measures.
 
    
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0618 GMT:
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,960.96   0.19 %     3.74
 NIKKEI                               15162.1   0.44 %     67.1
 MSCI ASIA EX-JP                        493.4   0.19 %     0.94
 EUR/USD                                1.365   0.02 %   0.0003
 USD/JPY                               101.29  -0.07 %  -0.0700
 10-YR US TSY YLD                       2.530       --     0.00
 10-YR BUND YLD                         1.260       --     0.00
 SPOT GOLD                          $1,315.86   0.06 %    $0.82
 US CRUDE                             $105.22  -0.49 %    -0.52
 
  > GLOBAL MARKETS-ASIA STOCKS MAKE CAUTIOUS GAINS, YEN EDGES HIGHER 
  > US STOCKS-WALL ST RISES WITH TECH SHARES; DUPONT DRAGS 
  > NIKKEI STABILISES AFTER SELLOFF, CAPPED BY SALES TAX CONCERNS 
  > FOREX-DOLLAR STRUGGLES AFTER SETBACK, PAYROLLS IN FOCUS THIS WEEK 
  > GOLD STEADY NEAR TWO-MONTH HIGH, POISED FOR SECOND QUARTERLY GAIN 
  > METALS-LONDON COPPER EYES SECOND MONTHLY RISE ON TIGHT SUPPLY 
  > BRENT SLIPS TOWARDS $113 AS SUPPLY RISKS FROM IRAQ EASE 
    
    COMPANY NEWS:
    
    BNP PARIBAS 
    The U.S. Justice Department is expected to announce on Monday a settlement
with the French bank involving a record fine of nearly $9 billion over alleged
U.S. sanctions violations by France's biggest bank, sources familiar with the
matter said. 
        
    BANCA MONTE DEI PASCHI DI SIENA 
    Italy's Banca Monte dei Paschi di Siena said on Friday it had raised 4.99
billion euros ($6.81 billion) through a sale of new shares, allowing it to repay
much of its state aid and increasing chances it could pass an EU review of bank
assets. 
    
    GENMAB, GLAXOSMITHKLINE 
    * GlaxoSmithKline and Denmark's biotech company Genmab said late on Friday
their cancer drug Arzerra failed to treat a type of leukemia more effectively
than other drugs in a late-stage trial. 
    * GlaxoSmithKline on Sunday confirmed the existence of an intimate video
recording of its former China head, Mark Reilly, which the Sunday Times reported
kicked off a bribery investigation that has damaged the drugmaker's business in
China. 
    
    ITALCEMENTI 
    Italy's Italcementi, the world's fifth-largest cement producer, said on
Friday its 500 million euro ($682 million) capital increase was 99.4 percent
subscribed. 
    
    ACCOR 
    French ministers on Sunday attacked proposals by lawmakers to increase taxes
on hotel stays and called for them to be scrapped as they could undermine plans
to boost the tourism sector. Sebastien Bazin, chief executive of Europe's
largest hotel group Accor ACCP.PA, has said the new taxes would severely cut
hotel margins and penalize tourism. 
    
    ANGLO AMERICAN 
    The miner has put some of its platinum mines in South Africa up for sale in
a move by Chief Executive Mark Cutifani to dispose of underperforming assets,
the Sunday Times reported. 
    
    BARCLAYS 
    Barclays has hired lawyers from the high-profile firm Wilmer Cutler
Pickering Hale and Dorr LLP to help the bank defend itself against accusations
that it deceived investors in its "dark pool" trading venue, according to people
familiar with the matter. 
    
    SHIRE 
    The boss of U.S. drug-maker AbbVie Inc is flying into London this
week to court Shire's shareholders and try to convince them of the merits of a
potential takeover, the Telegraph reported.
    
    BG GROUP 
    The partners in Israel's giant Leviathan natural gas field said they had
signed a preliminary agreement with British oil and gas company BG Group BG.L to
negotiate a deal to export gas to BG's liquefied natural gas plant in Idku,
Egypt. 
    
    MERCK KGAA 
    The listing of Merck shares on the regulated market of the Frankfurt Stock
Exchange will be changed on Monday in line with the approval of a 1:2 share
split by the group's annual general meeting in May. 
    
    SIEMENS 
    The company's works council two weeks ago approved restructuring plans to
scrap a layer of management by cutting the organization back to nine core
divisions, Der Spiegel reported on Sunday, without citing the source of the
information. 
    
    THYSSENKRUPP 
    The steelmaker said late on Sunday it had agreed to sell its submarine
shipyard in the south of Sweden to Swedish defence firm Saab for 340 million
Swedish crowns ($50.47 million). 
    
    ACS 
    Spain will pay 1.4 billion euros in compensation to Escal UGS, jointly owned
by building and services group ACS and Canada's Dundee Energy DEN.TO, holder of
offshore gas facility Castor, after the unit was shut down following seismic
activity. 

 (Reporting by Blaise Robinson; Editing by Anupama Dwivedi)