LONDON, Sept 27 European equity index futures crept higher on
Friday, although investors expected a lack of progress in ongoing U.S. budget
and debt negotiations to keep indexes in a tight trading range.
The Euro STOXX 50 futures were up by 0.2 percent by 0615 GMT, while
Germany's DAX futures and France's CAC both edged up by 0.1
German bund futures opened 5 ticks lower.
Global stock markets scaled fresh heights after the U.S. Federal Reserve on
Sept. 18 decided to keep its economic stimulus programme of bond-buying - a plan
known as "quantitative easing" (QE) which has boosted equities - unchanged for
But investors have since used issues such as talks in the United States to
increase the country's borrowing authority as a cursor to trim back equities in
order to cash in profits on the earlier rally.
U.S. House of Representatives Republicans on Thursday refused to give in to
President Barack Obama's demand for straightforward bills to run the government
beyond Sept. 30 and to increase borrowing authority to avoid a historic default.
Political uncertainty in Italy has also held back European equities, with
Italy's FTSE MIB equity index falling on Thursday after renewed threats
from former premier Silvio Berlusconi's centre-right party to pull out of the
country's fragile coalition government.
Hendrik Klein, head of high frequency trading and fund management firm Da
Vinci Invest, said he had recently sold out of the Euro STOXX 50 at 2,900 points
and the DAX at 8,650 points, but was keeping a longer-term bullish view on
The FTSEurofirst 300 hit a fresh 5-year high of 1,274.59 points on Sept 19,
but has since edged back by around 1.3 percent and has traded within a 15-point
trading range. The index remains up by 11 percent since the start of 2013.
Central Markets chief strategist Richard Perry said that while U.S.
politicians had historically always managed to reach an agreement to avert any
default, equity markets would not make much headway until a new U.S. debt deal
"History shows that these decisions tend to go right down to the wire, and
typically the decisions are always in favour of the markets," he said.
"However, the markets will remain on edge while the battle ... rumbles on,
so expect markets to remain range bound until the decision."
> GLOBAL MARKETS-Asian shares firm, but U.S. budget impasse constrains
> Wall St ends 5-day losing streak on job data; Nike up after the bell
> Nikkei eases in choppy trade, Abe's tax plan in focus
> TREASURIES-Prices edge lower as jobless claims near six-year low
> FOREX-Dollar steady, focus on U.S. budget brinkmanship and Fed
> PRECIOUS-Gold headed for 5th straight weekly fall on stimulus outlook
> METALS-London copper edges up on China demand, steady on week
> Brent slips below $109 on easing Mideast tension, on track for 3rd weekly
Nestle SA, the world's largest food company, is looking to divest its
PowerBar energy bars, a pioneer of sports nutrition products, according to four
people familiar with the matter.
The carmaker said Thursday it signed a 9 billion euro credit facility,
taking advantage of favourable market conditions to replace an existing, smaller
AIR FRANCE KLM /ALITALIA:
Air France-KLM voted against a proposal for a 100 million euros capital
increase at troubled Alitalia on Thursday, a source close to the matter said.
Rival Nike Inc enjoyed big sales in gains in North America and
Europe last quarter and benefited from fewer markdowns, helping it report a
stronger-than-expected quarterly profit on Thursday.
Banco Santander Brasil SA will modify its capital structure and
pay shareholders a one-off dividend of 6 billion Brazilian reais ($2.73
billion), allowing it to return funds to its Spanish parent which has been
French steel-tube maker Vallourec said a weak Brazilian real and reduction
in demand for new oil and gas wells in Brazil could dent growth in revenue and
EBITDA margin this year.
China's Shuanghui International Holdings Ltd will reduce its
stake in Spanish packaged meats company Campofrio to less than 30 percent from
37 percent within three months, the company said in a regulatory filing on
ROYAL DUTCH SHELL :
Royal Dutch Shell Plc reported it had issued an "all-clear" following a
propane leak at its Sarnia manufacturing site in Ontario, according to the
Sarnia-Lambton Network Alert System.