(Adds company items, futures; updates snapshot)
PARIS, April 29 (Reuters) - European stocks were set for a breather on
Tuesday after reaching 2-month highs in the previous session, as investors pored
over corporate results and braced for a U.S. rate decision due on Wednesday.
By 0648 GMT June Stoxx50 futures STXEM8 were down 0.5 percent, June DAX
futures FDXM8 were down 0.5 percent and CAC-40 May futures FCEc1 were down
0.4 percent.
Financials will be in focus after Deutsche Bank (DBKGn.DE) posted its first
quarterly loss in five years and said it made further writedowns of 2.7 billion
euros.
A raft of corporate earnings from firms such as BP (BP.L), Royal Dutch Shell
(RDSa.L), BMW (BMWG.DE), Daimler (DAIGn.DE), Metro (MEOG.DE) and Banco Santander
(SAN.MC) will also be in the spotlight on Tuesday.
Bearish remarks by influential investor Warren Buffett, who said the U.S.
economy could face a long and deep recession, may weigh on the market. Buffett's
comments pushed U.S. stocks off their highs to close almost flat on Monday.
"We are expecting a cautious week in Europe and the US with investors
looking to the central banks for guidance. The Fed's policy meetings look like
they will have investors on edge, and as for the euro zone, continued concerns
on inflation and consumer confidence still remain," Oliver Stevens, head of
dealing at IG Markets, wrote in a note.
----------------------MARKET SNAPSHOT AT 0639 GMT----------------------
LAST PCT CHG NET CHG
S&P 500 .SPX 1,396.37 -0.11 % -1.47
MSCI ASIA EX-JP .MIASJ0000PUS 572.35 -0.37 % -2.11
EUR/USD EUR= 1.5602 -0.30 % -0.0047
USD/JPY JPY= 104.26 0.07 % 0.0700
10-YR US TSY YLD US10YT=RR 3.831 -- 0.00
10-YR BUND YLD EU10YT=RR 4.188 -- -0.02
SPOT GOLD XAU= $889.30 -0.36 % -$3.20
BRENT CRUDE LCOc1 $116.00 -0.57 % -$0.7
-----------------------------------------------------------------------
* U.S. stocks near flat as M&A, economy weighed [ID:nN28129]
* Asian stocks ease with all eyes on the Fed [ID:nSP206357]
* Oil falls towards $118 from record-peak, eyes on Fed [ID:nL29552898]
* Gold dips ahead of Fed meeting; investors shy away [ID:nSP164097]
* Dollar drifting, awaiting US rate clarity [ID:nSYD245561]
* Bonds gain as traders see modest Fed rate cut [ID:nL29476283]
COMPANY NEWS:
DEUTSCHE BANK (DBKGn.DE)
Deutsche Bank reported its first quarterly loss in five years as the cost of
the global financial crisis mounted for the bank. Deutsche said that it made
further writedowns of 2.7 billion euros during the period. [ID:nL28449038]
HBOS HBOS.L
Britain's biggest mortgage lender unveiled a 4 billion pound ($7.9 billion)
rights issue to rebuild its capital base after a hefty hit on the valuation of
risky assets. HBOS will offer two new shares for every five at 275 pence per
share, a 45 percent discount to Monday's close of 495.75p, it said on Tuesday.
[ID:nWLB0652]
ROYAL DUTCH SHELL (RDSa.L)
Royal Dutch Shell Plc beat forecasts on Tuesday with a 12 percent rise in
its first quarter current cost of supply net income, helped by record oil prices.
For details, see: [ID:nWLB0635]
BP (BP.L)
British oil major BP Plc beat forecasts with a 48 percent leap in
first-quarter replacement cost (RC) net income, helped by record oil prices.
For details, see: [ID:nWLB0646]
SANTANDER (SAN.MC)
Spain's largest bank posted first-quarter net profit of 2.206 billion euros
($3.46 billion) on Tuesday, up 22.4 percent and just ahead of forecasts.
For details, see [ID:nMDT005141]
METRO AG (MEOG.DE)
Metro AG's first-quarter operating earnings rose about 14 percent and its
Real hypermarkets saw the biggest same-store sales increase among all four
units, thanks to higher prices and an ongoing revamp.
For details, see: [ID:nWEB3221]
TELENOR (TEL.OL) TELIASONERA (TLSN.ST)
Norwegian telecoms operator Telenor (TEL.OL) has hired Nordea (NDA.ST) and
JP Morgan (JPM.N) to analyse a possible merger deal with rival TeliaSonera
(TLSN.ST), Swedish newspaper Svenska Dagbladet reported on Tuesday, citing
sources. For details, see: [ID:nL29600270]
ALLIANZ (ALVG.DE)
Europe's biggest insurer Allianz (ALVG.DE) unveiled writedowns from the
global financial crisis of 900 million euros ($1.4 billion) in the first quarter
and said the crisis could endanger its medium-term goals.
For details, see: [ID:nL29294524]
BMW (BMWG.DE)
BMW said first-quarter group pretax profit was 641 million euros. The firm
said it sees pretax profit rising in 2008 excluding one-off gain from Rolls
Royce (RR.L) in 2007.
BRITISH AIRWAYS (BAY.L)
The Independent said British Airways will issue its second profit warning of
the year next month due to the record oil price that has already sent several
carriers into bankruptcy and forced other s to raise fares to deal with the
unprecedented rise in costs, citing analysts.
CIBA CIBN.VX
First-quarter net profit at Swiss specialty chemicals company Ciba Holding
AG CIBN.VX halved to 37 million Swiss francs ($35.85 million) due to high raw
material costs and the strong franc, missing forecasts.
For related news, click on [CIBN.VX-RTRS-LEN]
PUBLICIS (PUBP.PA)
French advertising company Publicis Groupe posted a 5.4 percent rise in
first-quarter underlying revenues and said its weak health communications
business woul
d return to growth before the end of the year. For details, see [nL29148527]
ANGLO AMERICAN (AAL.L)
Mining group Anglo American Plc posted a 9.1 percent rise in first-quarter
copper output on Tuesday but refined platinum output slid by 24 percent. For
details, see: [ID:nWLB0645]
STMICROELECTRONICS (STM.PA)
STMicroelectronics posted a quarterly loss on Monday because of charges
related to the spin-off of a business unit and a weak dollar.
For story click on [ID:N28193333]
(Reporting by Blaise Robinson)
