European Factors to Watch-Shares to steady after bullish start to Q3

Wed Jul 2, 2014 2:23am EDT

(Adds detail, quote, company news)
    EDINBURGH, July 2 (Reuters) - European stocks were seen opening mixed on
Wednesday, consolidating after resilient economic data sparked good gains in the
previous session and helped to spur U.S. stocks to all-time highs.
    Encouraging data out of China helped the pan-European FTSEurofirst 300 index
 close up 0.9 percent on Tuesday at 1,382.31 - kicking off the quarter
with a gain and notching its biggest one-day percentage rise since May 8.
    In the United States, the Dow and the S&P 500 both hit
all-time highs, buoyed by equally sturdy domestic manufacturing data, in
addition to the strong China data.
    The FTSEurofirst 300 remains 1.2 percent off of its high for 2014 hit last
month, and over 18 percent below its all time peak, hit in June 2000.
    "The bulls certainly took charge yesterday across global equities, though
whilst U.S. traders where content to make or close in on new highs on a mixed
bag of economic data, Europe's major indices still languish some way off
repeating the same feat," Jonathan Sudaria, trader at Capital Spreads, said in a
note.
    "For all the hype surrounding the rally, volumes still linger around
lacklustre levels and many traders view the moves higher as un-authentic."
    At 0615 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were 0.2 percent lower
to 0.1 percent higher.
    The pharmaceutical sector will be in focus once again after Swiss company
Roche agreed to buy Seragon Pharmaceuticals for $725 million, in the
latest in a spate of mergers and acquisition deals in the industry.
    Automakers may also be in the spotlight after U.S. car sales data for June
came in ahead of expectations for most major firms in the sector.
    
    
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
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  MARKET SNAPSHOT AT 0619 GMT:
    
                                                 LAST  PCT CHG  NET CHG
 S&P 500                                     1,973.32   0.67 %    13.09
 NIKKEI                                      15369.97   0.29 %    43.77
 MSCI ASIA EX-JP                               499.13   1.07 %      5.3
 EUR/USD                                       1.3673  -0.04 %  -0.0006
 USD/JPY                                       101.56   0.04 %   0.0400
 10-YR US TSY YLD                               2.565       --     0.00
 10-YR BUND YLD                                 1.256       --     0.01
 SPOT GOLD                                  $1,325.00  -0.03 %   -$0.44
 US CRUDE                                     $105.47   0.12 %     0.13
 
  
  > GLOBAL MARKETS-Asia shares make 3-yr high on economic optimism   
 
  > US STOCKS-Dow, S&P end at records before the Fourth         
  > Nikkei hits 5-month high, exporters gain on strong U.S. data    
  > TREASURIES-U.S. bond yields rise ahead of jobs data        
  > FOREX-Sterling, commodity currencies shine on solid data     
  > PRECIOUS-Gold near 3-month high on second day of fund inflows    
  > METALS-London copper slips from highest in nearly 4 months    
  > Brent eases towards $112; lingering supply fears stem losses    
    
    COMPANY NEWS
    
     ORANGE, BOUYGUES, ILIAD 
    Orange said on Wednesday it was dropping for now the idea of taking part in
tie-ups in the French telecoms market, saying the conditions it had set had not
been met. 
    Martin Bouygues, the head of the French construction-to-media conglomerate
Bouygues and controlling shareholder, said separately on Tuesday that
"nothing concrete" had come about on talks towards a sale of Bouygues Telecom to
a rival operator. 
    
    
    BNP PARIBAS 
    The French bank can withstand the impact of the record fine imposed on it by
U.S. authorities without having to raise fresh capital, Chief Executive
Jean-Laurent Bonnafe told Les Echos newspaper in an interview. 
    BNP Paribas has also sought permission to continue to manage U.S. pension
assets, a federal official in Washington said on Tuesday. 
    
    AUTOS   
    Most major automakers reported better-than-expected U.S. sales in June,
capping a strong second-quarter comeback from a brutal winter. 
    BMW said BMW brand and MINI U.S. sales rose 5.7 percent in June to 35,577
vehicles. 
    Daimler said June sales at Mercedes-Benz USA rose 8.2 percent to 29,380
vehicles.  
    Volkswagen of America said June sales declined 22 percent to
28,827 vehicles. 
    Separately, unlisted German car-parts makers Robert Bosch plans to
invest 400 million euros ($546 million) and create 3,000 new jobs in Mexico over
the next few years, Chief Executive Volkmar Denner was quoted as saying by
newspaper Stuttgarter Zeitung on Wednesday. 
    Related news 
    
    DEUTSCHE BANK 
    Citigroup Inc has bought Deutsche Bank AG's U.S. power
trading books, the latest move by the U.S. bank to build its energy trading
business as other Wall Street rivals retreat, two sources said on Tuesday.
 
    Related news 
    
    DEUTSCHE TELEKOM 
    U.S. authorities filed a complaint against T-Mobile USA on Tuesday,
accusing the wireless provider of adding millions of dollars of unauthorized
charges onto customers' bills, a practice known as "cramming". 
    Related news 
    
    ROCHE 
    Roche said it will pay $725 million in cash to buy Seragon
Pharmaceuticals, a privately-held biotech company which researches breast cancer
treatments, and that the deal price could rise by another $1 billion based on
certain milestones. 
    
    MUNICH RE, HANNOVER RE 
    Munich Re would cut capacity in its business with natural catastrophe cover
if institutional investors' move into the sector squeezed margins and made the
business unprofitable, board member Torsten Jeworrek was quoted as saying in
Frankfurter Allgemeine Zeitung.
    Related news 
    
    MONTE DEI PASCHI DI SIENA 
    The Italian lender has repaid 3.1 billion euros ($4.3 billion) in state aid
and an additional 329 million euros in interest, the Italian Treasury said on
Tuesday, confirming plans announced by the bank a day earlier. 
        
    RHEINMETALL 
    Rheinmetall's unlisted rival Krauss-Maffei Wegmann (KMW) and French arms
maker Nexter have entered exclusive talks to create a tie-up that would rank as
Europe's largest maker of ground armaments such as tanks, to better cope with
military budget cuts. 
    Related news    
    

 (Reporting by Alistair Smout; Editing by Tricia Wright)