European Factors to Watch-Bank earnings to help shares bounce

Tue Jul 29, 2014 2:28am EDT

(Adds futures, further details, company news)
    EDINBURGH, July 29 (Reuters) - European shares were set to rise on Tuesday,
recouping the previous session's falls, with better-than-expected corporate
results set to give the financial sector a boost.
    Germany's Deutsche Bank and Swiss bank UBS both posted
profits that beat consensus forecasts, even as the latter booked a 254 million
euro ($341.25 million) charge in the second quarter mainly to settle claims it
helped wealthy Germans to dodge taxes.  
    At 0625 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were 0.1-0.3 percent
higher.
    BP was also set to be in focus after posting a 34 percent rise in
profit, though it said further sanctions on Russia "could have a material
adverse impact" on its joint venture in the country.
    Eyes were on the European Union as member states were expected to try to
reach a final deal on Tuesday on stronger measures that would include closing
the bloc's capital markets to Russian state banks. 
    On Monday five Western leaders agreed to impose wider sanctions on Russia
after a Malaysian airliner was shot down over territory held by pro-Moscow
rebels in eastern Ukraine, in a move that could prompt economically damaging
tit-for-tat measures from Moscow. 
    "There appears to be a growing realisation that the EU needs to shift the
cost/benefit analysis for Putin and Russia to deter further aggressive steps
lest it send the signal that the EU response is more paper tiger than actual
tiger," Michael Hewson, chief market analyst at CMC Markets, said in a note.
    The pan-European FTSEurofirst 300 index closed down 0.2 percent at
1,369.61 points on Monday, hit in part by concern over the possible fall-out
from further sanctions.
        
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
    
------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0624 GMT:    
                                             LAST   PCT CHG  NET CHG
 S&P 500                                 1,978.91    0.03 %     0.57
 NIKKEI                                  15618.07    0.57 %    88.67
 MSCI ASIA EX-JP                           510.37    0.28 %      1.4
 EUR/USD                                   1.3432   -0.05 %  -0.0007
 USD/JPY                                   101.98    0.13 %   0.1300
 10-YR US TSY YLD                           2.494        --     0.00
 10-YR BUND YLD                             1.152        --     0.00
 SPOT GOLD                              $1,304.30    0.02 %    $0.31
 US CRUDE                                 $101.39   -0.28 %    -0.28
 
  > GLOBAL MARKETS-Asian stocks reach three-year peak            
  > US STOCKS-Wall St yawns as deal news offsets data; Herbalife sinks    
  > Nikkei rises to fresh 6-month high; Nissan jumps on strong results    
  > TREASURIES-Yields rise amid supply, yield curve flattens        
  > FOREX-Dollar sits tight near six-month high ahead of Fed meeting    
  > PRECIOUS-Gold holds above $1,300, focus on Fed policy meeting        
  > METALS-Zinc, lead buoyed as value hunters tune into growth story    
  > Brent dips toward $107 as ample supplies weigh                 
    
    COMPANY NEWS
    
    DEUTSCHE BANK 
    Indicated 1.6 percent higher
    The biggest German lender reported a 16 percent year-on-year increase in
quarterly pretax income to 917 million euros ($1.23 billion) as net revenue from
its important debt trading held steady. The bank increased reserves for future
litigation or settlements by 470 million euros to 2.2 billion. 
    Related news 
    
    LINDE 
    Indicated unchanged
    The industrial gases maker reported a 4.3 percent decline in underlying
quarterly profit as unfavourable currency fluctuations continued to weigh.
Second-quarter operating profit eased to 969 million euros from 1.01 billion, in
line with analyst expectations. 
    Related news 
    
    AIRBUS 
    Japan's Skymark Airlines has cancelled its order for six A380
aircraft from Airbus. Chief Executive Shinichi Nishikubo, speaking to reporters
at Japan's transport ministry, said his company was unable to get financing to
buy the aircraft, adding that Skymark would negotiate the cancellation fee with
Airbus.  
    
    UBS 
    UBS booked a 254 million euro ($341.25 million) charge in the
second quarter mainly to settle claims it helped wealthy Germans to dodge taxes,
and said it is cooperating with inquiries about alternative trading system, also
known as "dark pools", from various American regulators.
    For more click on 
    
    ROCHE 
    Roche said on Tuesday that European regulators approved its drug
Gazyvaro, or obinutuzumab, for patients with chronic lymphocytic leukaemia,
boosting the Swiss group's line-up of new cancer treatments.
    For more click on 
    
    RENAULT 
    The carmaker's cost-cutting led to a 25 percent surge in first-half
operating profit, even as currency headwinds and mounting inventories hurt sales
and cash flow. 
    
    ORANGE 
    The telecom operator confirmed its annual profit and debt targets after it
managed to stabilise its margins in the second quarter helped by ongoing cost
cuts and smaller sales declines in France and Poland than a year ago.
 
    
    ATOS 
    The French IT service company posted a slight drop in first-half revenue but
said it expected a continued pick-up in orders during the remaining six months
of the year, while the group's operating margin improved. 
    
    MICHELIN 
    The tyremaker's first-half net profit rose 13 percent to 624 mln euros
despite declining sales as lower raw materials costs helped offset weaker
emerging-market currencies, price cuts and slowing demand for big tyres.
 
    
    FAURECIA 
    The French auto parts maker raised its 2014 earnings goal after cost cuts
helped deliver a 21 percent first-half operating profit gain, offsetting
currency headwinds that almost flattened sales growth. 
    
    ALSTOM 
    The French engineering group said it had won contracts worth around 335
million euros to equip an Iberdrola power plant in Mexico.
 
    
    EIFFAGE 
    The French construction and concessions company reported a 4.1 percent fall
in second-quarter sales, partly due to a drop in public works, such as road
building.    
    
    BNP PARIBAS 
    French department store Galeries Lafayette said it had sold its 50 percent
holding in LaSer, a consumer credit company, to the personal finance unit of BNP
Paribas, with which it co-owned the unit. 
    
    ALTRAN 
    The company confirmed that consolidated margins in 2014 should be in line
with the targets fixed in the 2015 strategic plan after first-half revenue rose
6.5 percent to 862 million euros. 

 (Reporting by Alistair Smout; Editing by Francesco Canepa)