European Factors to Watch-Shares to edge higher from near 2-month lows

Mon Jul 14, 2014 2:44am EDT

(Adds detail, quote, table)
    EDINBURGH, July 14 (Reuters) - European stocks were seen slightly higher on
Monday, kicking off the week on a positive foot after a key index posted its
biggest weekly loss in four months to leave it near its lowest since May.
    At 0623 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were 0.5 to 0.8 percent
higher.
    The pan-European FTSEurofirst 300 looked set to build on the
previous session's gains, when it edged up 0.2 percent to 1,352.11. It still
finished the week down 3 percent in its largest weekly fall since March,
however.
    European shares regained their composure after stock markets globally had
been roiled by concerns over Portugal's banking system and specifically Banco
Espirito Santo, the country's largest listed bank by assets.
    Asian stocks and U.S. futures edged higher on Monday, with the lender and
central bank distancing BES from the financial troubles of its founding family.
  
    While the immediate concerns over contagion in the financial system were
allayed, traders remained cautious over a financial sector which remains dogged
by issues such as the strength of balance sheets and numerous regulatory probes.
    "Last week's events were a wake up call for complacent markets that for all
the exuberance about falling risks, the weakest European economies remain a long
way away from fiscal health, as do their banking systems," Michael Hewson, chief
market analyst at CMC Markets, said.
    
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0626 GMT: 
      
                                              LAST  PCT CHG  NET CHG
 S&P 500                                  1,967.57   0.15 %     2.89
 NIKKEI                                   15296.82   0.88 %   132.78
 MSCI ASIA EX-JP                            498.53   0.27 %     1.33
 EUR/USD                                    1.3598  -0.07 %  -0.0010
 USD/JPY                                    101.38   0.02 %   0.0200
 10-YR US TSY YLD                            2.529       --     0.01
 10-YR BUND YLD                              1.214       --     0.01
 SPOT GOLD                               $1,317.99  -1.48 %  -$19.85
 US CRUDE                                  $100.50  -0.33 %    -0.33
    
  > GLOBAL MARKETS-Asian shares edge higher, oil nurses losses    
  > US STOCKS-Wall St edges up; indexes post losses for week     
  > Nikkei rises as retail buyers snap up small caps             
  > TREASURIES-U.S. bond prices rise on banking, Middle East worry    
  > FOREX-Dollar steady in subdued market as key events loom    
  > PRECIOUS-Gold still near 4-month high on safe-haven bids    
  > METALS-London zinc hits near 3-year top on supply worries    
  > Brent rises as Libya, Iraq violence renews supply worries    
    
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 (Reporting by Alistair Smout; Editing by Tricia Wright)
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