European Factors to Watch-Shares set to consolidate after strong week

Mon Jul 7, 2014 1:59am EDT

(Adds detail, quote, company news)
    EDINBURGH, July 7 (Reuters) - European stocks were seen steady to slightly
higher on Monday, consolidating after a week which saw a key index post its
biggest rise since March. 
    The pan-European FTSEurofirst 300 rose 1.7 percent last week, its
biggest rise in over three months, boosted by robust growth in U.S. employment
and further signs of support from the European Central Bank.
    The gains saw the index rebound towards 6-1/2 year highs and retrace the
previous week's losses, when it had snapped a 10-week winning streak.
    Financial spreadbetters expected Britain's FTSE 100 to open 1 point
higher, or flat in percentage terms, Germany's DAX to open 9 points
higher, or up 0.1 percent, and France's CAC 40 to open up 3 to 4 points,
or 0.1 percent higher.
    Any gains on Monday will help recoup some of the previous session's losses,
after FTSEurofirst 300 slipped by 0.3 percent to 1,394.15 points on Friday,
having risen for the previous three days in a row to hover near 2008 highs.
    "Last week was a stellar week for global equities, underpinned by some
impressive jobs data out of the US, a pickup in global manufacturing activity
and ECB comments," Stan Shamu, market strategist at IG, said in a note.
    "The major bourses are facing a relatively flat to mildly firmer open (on
Monday). This could be because equities are due for a recovery after the
weakness we saw on Friday."
    
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0540 GMT:
                                          LAST   PCT CHG  NET CHG
 S&P 500                              1,985.44    0.55 %    10.82
 NIKKEI                               15404.26   -0.21 %   -32.87
 MSCI ASIA EX-JP                        501.18    0.06 %      0.3
 EUR/USD                                1.3581   -0.09 %  -0.0012
 USD/JPY                                102.10       0 %   0.0000
 10-YR US TSY YLD                        2.656        --     0.01
 10-YR BUND YLD                          1.259        --    -0.01
 SPOT GOLD                           $1,312.86   -0.54 %   -$7.19
 US CRUDE                              $103.93   -0.12 %    -0.13
 
  > GLOBAL MARKETS-Asian shares ease as investors look to earnings   
 
  > US STOCKS-Dow tops 17,000, S&P 500 at record as jobs jump    
  > Nikkei near 5-1/2-month high, helped by pension buying hopes    
  > TREASURIES-U.S. bond yields up after strong U.S. jobs data    
  > FOREX-Dollar stays firm in the wake of jobs-inspired rally    
  > PRECIOUS-Gold slips as strong equities, data dent appeal    
  > METALS-London copper steady, buttressed by tight supply     
  > Brent trades near 3-wk low just above $110                
    
    COMPANY NEWS
    
    BASF 
    Europe could eventually get a tenth of its power needs via shale gas
fracking, if it can overcome reservations such as those voiced in
recommendations from two German cabinet ministers, the EU's energy commissioner
said. 
    Related news 

    DAIMLER 
    The carmaker expects its Mercedes-Benz brand to overtake rivals Audi
 and BMW by number of cars sold in China this year as its
new strategy for the world's biggest car market starts to bear fruit, a board
member told a newspaper. 
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    HENKEL 
    The consumer goods group may make further acquisitions to bolster its
portfolio of detergents and hair care products, its finance chief told Euro am
Sonntag. 
    Related news 
        
    SANOFI 
    French pharmaceutical group Sanofi estimates that negative foreign currency
impact on its second-quarter 2014 financial results should be about 6 percentage
points on sales and 8 to 10 percentage points on business earnings per share
(EPS). 
    
    LUFTHANSA 
    Lufthansa's new Chief Executive Carsten Spohr aims to sign a deal with Air
China during Chancellor Angela Merkel's state visit to Beijing this
weekend, a German newspaper reported on Saturday. 
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    VOLKSWAGEN 
    The carmaker has received approval from China's National Development and
Reform Commission (NDRC) to add two more factories in the country, two people
close to the matter said on Sunday. 
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    AIRBUS 
    Airbus Group NV's helicopter division signed agreements on Monday
to sell 100 helicopters to Chinese companies. 
    Airbus has not decided whether it will launch its proposed A330neo jet at
this month's Farnborough Airshow but is confident about the outlook for plane
orders at the gala event, its strategy chief Marwan Lahoud said on Saturday.
 
    Related news 
    
    SKY DEUTSCHLAND 
    German media firm Constantin Medien will join the fray in the next
auction of broadcast rights for top-flight German soccer matches, supervisory
board member and shareholder Dieter Hahn told German daily Handelsblatt.
    He indicated that he aimed to offer customers a selection of matches rather
than full coverage, saying he did not see himself as a direct competitor to
incumbent Sky Deutschland. 
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    SOCIETE GENERALE 
    CREDIT AGRICOLE 
    France's finance minister said he was not worried about French banks being
investigated by U.S. authorities after a record fine was imposed on BNP Paribas
for violating U.S. sanctions against several countries. 
    
    ORANGE, BOUYGUES TELECOM 
    French telecom group Orange says Spain is where it sees possible acquisition
targets and does not exclude looking again at Bouygues' telecom business if
invited to do so. 
        
    EDF 
    French households could face an extra 27 euro ($36.83) catch-up payment to
settle their electricity bills after a government cap on prices was annulled.
 
    
    TOTAL 
    Total sees weak refining margins in the second quarter to June impacting
margins, its chief executive said.
    "Everybody knows refining margins have been extremely weak in the second
quarter and this will have an impact on our profits as it did during the first
quarter," said Total Chief Executive Christophe de Margerie. 
    
    ENI, ENEL 
    The government is considering accelerating the sale of stakes in Eni and
Enel in order to keep the revenues from its privatisation plans on track,
Economy Minister Pier Carlo Padoan said in a newspaper interview on Sunday.
 
    Il Messaggero said on Saturday in an unsourced report the treasury is ready
to cut its Eni stake to below 30 percent and may decide to sell 5-7 percent on
the market soon, perhaps already in September. Contacted by Reuters a treasury
spokesman declined to comment on the report.
        
    MEDIASET 
    Spanish telecoms company Telefonica is in talks to buy a stake in Mediaset's
Italian pay-TV business, two people familiar with the situation said on
Saturday.    
    Telefonica agreed on Friday to buy the 22 percent stake held by Mediaset in
Spanish pay-TV firm Canal + in a deal worth up to 365 million euros.
 
    
    TELIASONERA TELE2 
    Swedish telecom operator Tele2 said it had agreed to sell its Norwegian
business to peer TeliaSonera for 5.1 billion Swedish crowns ($744 million).
    Tele2 said in a statement the deal would mean a capital gain of
approximately 2 billion crowns. In a separate statement, TeliaSonera said the
transaction would increase its mobile market share in Norway to 40 percent from
23 percent and lead to cost synergies of at least 800 million crowns per year
from 2016.
    For more on the companies, click on  
    

 (Reporting by Alistair Smout; Editing by Prateek Chatterjee)