European Factors to Watch-Rebound stops as Software AG cuts f'cast

Tue Jul 15, 2014 2:26am EDT

(Adds futures, quote, further company news)
    LONDON, July 15 (Reuters) - European stocks were seen snapping a two-day
bounce on Tuesday, with a guidance cut at Germany's Software AG 
denting sentiment on the tech sector and traders awaiting German sentiment and
British inflation data.
     At 0622 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were down between 0.2
percent and 0.3 percent.
    German business software maker Software AG cut its 2014 outlook for sales
growth at its biggest business, citing significant delays to major projects in
the second quarter. 
    Traders were awaiting data due later in the session to assess the state of
Europe's largest economy and the outlook for UK interest rates.
    Britain's Consumer Price Index, due at 0830 GMT, was expected to show
inflation ticked up slightly in June after hitting a 4-1/2-year low in the prior
month. Germany's ZEW sentiment index for July, due to be published at 0900 GMT,
was seen falling for a seventh consecutive month.
    "Traders are taking a little breather before UK CPI and the German ZEW
Surveys to see how sentiment pans out," Jonathan Sudaria, a dealer at Capital
Spreads, said.
    Federal Reserve Chair Janet Yellen testifies on the central bank's
semiannual monetary policy before the Senate Banking Committee at 1400 GMT.
Analysts at Societe Generale expect Yellen to keep her recent, dovish tone of
despite improvements in labour market conditions and housing activity.   
    The Euro STOXX 50 rose 0.9 percent on Monday, extending a bounce
started in the previous session and recouping some of the 3.5 percent drop in
the previous week due to some soft economic data and concerns about Portugal's
banking system.
    Some late selling over the past two sessions, however, suggested investors
remained cautious and were happy to book any intra-day profit. 
    "It means the resumption of the uptrend is not gonna be a V-bottom but is
going to take a bit of time," said Philippe Delabarre, an analyst at Trading
Central.
    "Most of the correction move is done and the bullish trend should resume
thanks to an intermediary support at 3,135 (which supported the index between
April 25 and May 19) and an ascending trend line drawn from December 2013."
    
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0513 GMT:
   
                                             LAST   PCT CHG      NET CHG   
 S&P 500                                 1,977.10    0.48 %         9.53   
 NIKKEI                                  15395.16    0.64 %        98.34   
 MSCI ASIA EX-JP                           499.45    0.15 %         0.76   
 EUR/USD                                   1.3608   -0.08 %      -0.0011   
 USD/JPY                                   101.57    0.04 %       0.0400   
 10-YR US TSY YLD                           2.536        --        -0.01   
 10-YR BUND YLD                             1.208        --         0.00   
 SPOT GOLD                              $1,308.70    0.14 %        $1.86   
 US CRUDE                                 $100.90   -0.01 %        -0.01   
 
  
  > ASIAN SHARES GAIN, COUNT ON FED'S SUPPORT                       
  > WALL ST CLOSES HIGHER ON CITI EARNINGS, HEALTHCARE M&A                 
  > NIKKEI RISES TO 1-WEEK HIGH ON WALL STREET GAINS; BOJ AWAITED          
  > TREASURIES-BOND PRICES SLIP ON PROSPECTS OF HAWKISH YELLEN COMMENTS  
  > DOLLAR EDGES UP ON YEN AFTER BANK OF JAPAN TRIMS GDP FORECAST        
  > GOLD RETAINS SHARP LOSSES, TRADES NEAR 4-WEEK LOW                    
  > SHANGHAI COPPER SLIDES TO NEAR 2-WEEK LOW ON SPECULATIVE SELLING    
  > BRENT HOVERS NEAR $107 ON LIBYA, IRAQ CONCERNS                        
    
    COMPANY NEWS
    
    SKF 
    The world's biggest bearings maker posted a rise in second quarter earnings
in line with market expectations on Tuesday and said it expected demand to be
relatively unchanged in the third quarter. 
    
    ROCHE 
    Roche said U.S. health regulators have granted a priority review of
its Avastin when combined with chemotherapy to treat women with cervical cancer.
 
    
    NOVARTIS
    Novartis said it has struck an agreement with Google for
its eyecare unit Alcon to license the American technology firm's smart lens
technology for medical use. 
    
    PORTUGAL TELECOM 
    Shareholders of Grupo Oi SA are likely to seek to renegotiate
terms of a merger with Portugal Telecom SPGS SA if the latter's debt investments
with Banco EspĂ­rito Santo SA end up in default, Brazilian
Communications Minister Paulo Bernardo said on Monday.
   
    BARCLAYS 
    Volume in Barclays PLC's private U.S. trading venue, also known as a "dark
pool," fell by more than a third after New York's attorney general filed a
lawsuit accusing the British bank of giving an unfair edge to high-speed
traders, according to data released on Monday. 
    
    VW <VOWG_p.DE >
    Volkswagen will spend $900 million to build a mid-sized SUV at its U.S.
plant in Tennessee, nearly doubling the factory's workforce, in an effort to
revitalise sales in the world's second-largest auto market. 
    
    TELEKOM AUSTRIA 
    Carlos Slim's America Movil said on Monday it will take control of just over
half of Telekom Austria in a $1 billion buyout offer, giving the Mexican
billionaire a base to build up his presence in European telecoms.
 
    
    LUFTHANSA 
    The German airline said on Monday it will reduce service to Venezuela by 40
percent starting next month amid an ongoing dispute about repatriation of
revenue from ticket sales 
    
    INDRA 
    UBS said on Monday it would sell an about 4 percent stake in Spanish
technology firm Indra on behalf of investor Casa Grande de Cartagena through an
accelerated book build process. 
    
    POPULAR 
    Spain's Banco Popular said on Monday it had booked a 96 million euro ($131
million) capital gain from the sale of financial rights linked to certain
pension and insurance products to a group of investors. 
    
    MARINE HARVEST 
    The world's largest fish farmer will post operational earnings before
interest and taxes (EBIT) of 1.2 billion crowns ($194.24 million) in the second
quarter, against 901 million crowns a year ago, it said on Tuesday.
 
    
    SACYR 
    A $180 million claim involving the Panama Canal's disputed $1.6 billion cost
overrun is headed to arbitration court in Miami next week, canal officials said
on Monday. 
    

 (Reporting By Francesco Canepa; Editing by Atil Prakash)
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article