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European Factors to Watch-Shares seen down on stimulus doubts
June 18, 2013 / 5:36 AM / 4 years ago

European Factors to Watch-Shares seen down on stimulus doubts

6 Min Read

LONDON, June 18 (Reuters) - European stocks were expected to edge lower at
the open on Tuesday, halting a three-day rise as nervous investors fretted about
a trimming of U.S. monetary stimulus in the run up to a Federal Reserve policy
meeting.
    At 0614 GMT, futures for the Euro STOXX 50, Germany's DAX 
and France's CAC were down 0.3-0.4 percent. Futures for Britain's FTSE
100 were down 0.1 percent. 
    They were taking their cue from Japanese stocks, down on Tuesday, and U.S.
shares, which closed well off their intra-day highs on the previous day.
    Traders cited as an influence a Financial Times story which said the Fed was
likely to signal at the end of a policy meeting on Wednesday that a move to
reduce its equity-friendly asset-purchase programme was close.
    The article, however, couched that by saying Bernanke as usual would say
subsequent moves would depend on the economy and gave no sources for its
conclusions.
    "The overnight article in the Financial Times showed just how sensitive the
market is to headlines," Chris Weston, chief market strategist at IG, said in a
note to clients.
    "Thursday - the day after the Fed meeting - should restore clarity to the
investment and trading community and perhaps cause the headline risk that is
bringing the algo traders out in droves to retreat."
    Concerns that global central banks could reduce their largesse and spark
selloffs in riskier assets have also prompted hefty losses in emerging market
equities and bonds this month.
    The Euro STOXX 50 fell 8 percent in the two weeks to last
Thursday but has risen 3 percent since hitting a 1-1/2-month intra-day low on
Friday, as some weaker-than-expected U.S. data rekindled speculation of more Fed
stimulus.
    Charts on the index showed some investors were still prepared to buy market
dips, betting that a 30 percent rally since last June would resume after a
volatile spell.
    "On a short-term basis, we are bullish, as a bullish candlestick pattern, a
counter-attack line on last Friday, is confirmed," Philippe Delabarre, a
technical analyst at Trading Central in Paris said, referring to last week's
late rebound.
    He also highlighted the index's Relative Strength Index, a momentum
indicator, was supported by a horizontal threshold and was making higher lows at
a time when the index was recording lower lows, a divergence that often marks
the reversal of a downtrend.

--------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0614 GMT: 
  
                                              LAST   PCT CHG   NET CHG
 S&P 500                                  1,639.04    0.76 %     12.31
 NIKKEI                                  13,007.28    -0.2 %    -25.84
 MSCI ASIA EX-JP                            516.81    0.11 %      0.55
 EUR/USD                                    1.3342   -0.19 %   -0.0025
 USD/JPY                                     94.81    0.34 %    0.3200
 10-YR US TSY YLD                            2.176        --      0.00
 10-YR BUND YLD                              1.539        --      0.01
 SPOT GOLD                               $1,380.15    -0.3 %    -$4.20
 US CRUDE                                   $97.82    0.05 %      0.05
 
  > Asian shares slide as upcoming Fed meeting jangles nerves       
  > US STOCKS-Wall St rises in volatile session before Fed meeting  
  > Nikkei turns down as market wary ahead of Fed outcome           
  > TREASURIES-Bond prices fall on jitters over Fed bond buying     
  > Dollar hovers above 2-month low vs yen; Aussie down on RBA      
  > PRECIOUS-Gold holds steady ahead of Fed meeting                 
  > London copper drops for 2nd day as market eyes Fed              
  > Brent hovers near 10-week high, Fed meeting in focus            
    
    COMPANY NEWS
    
    KABEL DEUTSCHLAND 
    Germany's biggest cable operator confirmed on Monday that they have received
a preliminary approach from U.S. media group Liberty Global Plc after
a British newspaper reported that the company had put forward a 7.5-billion-euro
bid for the company. 
    
    A.P. MOLLER-MAERSK 
    The container shipping unit of the Danish shipping and oil group has entered
into an alliance with its two biggest rivals MSC Mediterranean Shipping Company
S.A. and CMA CGM to improve operations and services offered. 
    
    DANSKE BANK 
    A Danish regulator has ordered the country's biggest financial institution
to change how it calculates its solvency and set aside more risk capital, the
bank said in a statement late on Monday. 
    The order from the Danish Financial Supervisory Authority (FSA) would result
over time in a rise in risk-weighted assets of around 100 billion crowns ($17.9
billion) relative to the figure for the first quarter of this year of 797
billion.
    
    SWISS BANKS  
    Switzerland's lower house is due to decide whether to address a bill aimed
at ending a long-running U.S. tax probe into hidden offshore accounts at Swiss
banks.
    
    GENERALI BANCO ESPIRITO SANTO 
    Portugal's Banco Espirito Santo is vying with Spain's Bankinter to
buy the BSI private banking unit of Italian insurer Assicurazioni Generali
, a source close to the situation said on Monday.
    
    SWISS WATCHES  
    French luxury and sports brands group PPR is in talks to buy
control of Richard Mille, one of the most expensive watch brands on the market,
an industry source with first-hand knowledge of the matter told Reuters.
    
    TEMENOS 
    The provider of software to the banking industry announced a share buyback
programme for 2013 of up to 3 million shares for cancellation.

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