Europe Factors to Watch-Shares set to pause after brisk rally

Wed Aug 27, 2014 2:17am EDT

PARIS, Aug 27 (Reuters) - European shares were set to dip on Wednesday,
pausing after their brisk 2-1/2 week rally, with data showing German consumer
morale falling for the first time in more than 1-1/2 years denting investors'
appetite for stocks.
    Market research group GfK said on Wednesday its forward-looking consumer
sentiment indicator, based on a survey of around 2,000 Germans, fell to 8.6
going into September from a downwardly revised 8.9 in August.
    It was the biggest drop in more than three years and below the consensus
forecast in a Reuters poll of 30 economists for 9.0, undershooting even the most
pessimistic estimate of 8.7. GfK said it was the first decline since January
2013. 
    At 0612 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were down 0.2-0.3
percent.
    French equities will be in the spotlight on Wednesday after President
Francois Hollande replaced his maverick leftist economy minister Arnaud
Montebourg with Emmanuel Macron, a former Rothschild partner, in a reshuffle
intended to reconcile his efforts to revive the stagnant French economy with
deficit-cutting orthodoxy. 
    European stocks have strongly rallied since a low hit on Aug 8, with the
FTSEurofirst 300 index surging 6 percent, as fears of an escalation in
the Ukrainian crisis eased and comments from European Central Bank President
Mario Draghi fuelled speculation the ECB could embark on a large-scale
asset-buying scheme to revive inflation.
    Late on Tuesday, Ukrainian President Petro Poroshenko promised after
negotiations with Russia's Vladimir Putin to work on an urgent ceasefire plan to
defuse the separatist conflict in the east of his former Soviet republic.
 
    The impact from the Ukrainian crisis and tensions between the West and
Moscow were visible again in European company results on Wednesday, with Marine
Harvest, the world's largest salmon farmer, saying it expected Russian
sanctions, which are hurting salmon exporters, to pose short-term challenges.
 
        
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0612 GMT: 
                                         LAST   PCT CHG  NET CHG
 S&P 500                             2,000.02    0.11 %      2.1
 NIKKEI                              15534.82    0.09 %     13.6
 MSCI ASIA EX-JP                       514.61    0.44 %     2.26
 EUR/USD                                1.317    0.02 %   0.0003
 USD/JPY                               103.96   -0.07 %  -0.0700
 10-YR US TSY YLD                       2.386        --    -0.01
 10-YR BUND YLD                         0.933        --    -0.01
 SPOT GOLD                          $1,283.80    0.25 %    $3.16
 US CRUDE                              $93.91    0.05 %     0.05
 
  > GLOBAL MARKETS-ASIA STOCKS UP, ECB TALK PRESSURES EURO 
  > US STOCKS-S&P 500 SCORES FIRST CLOSE ABOVE 2,000; DATA HELPS 
  > NIKKEI EDGES UP ON WALL ST GAINS, KAWASAKI KISEN RISES ON ROE HOPE 
  > DOLLAR SETS 13-MTH HIGH AS EURO STRUGGLES ON ECB EASING EXPECTATIONS 
  > PRECIOUS-GOLD DRIFTS HIGHER; FIRM DOLLAR AND EQUITIES LIMIT UPSIDE 
  > LONDON COPPER STEADY, SUPPORTED BY BRIGHTER U.S. SIGNALS 
  > BRENT NUDGES UP NEAR $103, RECOVERS FROM 14-MONTH LOW 
    
    COMPANY NEWS:
    
    MARINE HARVEST 
    The world's largest salmon farmer said it expected Russian sanctions, which
are hurting salmon exporters, to pose short-term challenges. 
    
    ROYAL BANK OF SCOTLAND 
    The lender will be fined by Britain's financial regulator on Wednesday over
mortgage advice given to customers, sources familiar with the matter told
Reuters on Tuesday. 
    
    GLENCORE 
    The commodity trader and miner and Chinese nickel producer Jinchuan Group
 are the front runners to buy BHP Billiton's Australian Nickel
West division, a source close to the situation said. 
    
    UBS 
    UBS published its Pillar 3 report for the first half which includes
disclosures on capital, risk and securitization as of June 30, complementing the
Swiss bank's first- and second-quarter reporting. 
    
    TELECOM ITALIA, VIVENDI 
    Telecom Italia will make a bid valued at roughly 7 billion euros ($9.2
billion) for Vivendi's Brazilian broadband unit GVT, which would leave Vivendi
with a 15 to 20 percent stake in the Italian group, said four people familiar
with the matter. 
    
    LUFTHANSA 
    The German airline and pilots' union Vereinigung Cockpit (VC) will return to
the negotiating table on Thursday as they seek to reach agreement in a dispute
over an early retirement scheme, both sides said on Tuesday. 
    
    AREVA 
    Areva signed $100 million worth of contracts to provide nuclear fuel
fabrication, outage services and used fuel management solutions to a U.S.
nuclear utility, it said in a statement on Tuesday, without disclosing the name
of its customer. 
    
    AGFA-GEVAERT 
    The Belgian graphics group on Wednesday said it grew its profit margins in
the second quarter, helped by lower raw materials prices and a programme to
improve efficiency. 
    
    TOM TAILOR 
    The fashion retailer said late Tuesday that Hong Kong listed conglomerate
Fosun International could acquire more shares in the coming months, depending on
the share price, after buying a 23 percent stake. 
    
    TOTAL 
    Norway is confident the Snorre oilfield's production life will be extended
as planned, the country's oil and energy minister said on Tuesday, despite
doubts expressed by some of the partners about the project's viability. Total is
a partner in the field. 
    
    TF1 
    The broadcaster wrote a letter to the government a month ago warning of a
dark outlook for TV media groups and asking for a lighter regulatory touch in
future. 
    
    INGENICO 
    The payment systems group said it had been awarded the first certification
in France for a mobile acceptance solution by Cartes Bancaires CB Group.
Mobile acceptance combines a payment solution with mainstream mobile equipment
such as a smartphone or tablet. 
    
    GOLDEN OCEAN 
    The Dry bulk shipper said it expected to post a small net loss in the third
quarter as it posted second-quarter earnings slightly above expectations on
Wednesday. 
    

 (Reporting by Blaise Robinson; Editing by Francesco Canepa)
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