LONDON, Oct 25 European equity futures fell early on Friday,
with stock markets seen pausing for breath after hitting fresh highs this week
while some mixed corporate results may also cause selling pressure.
The euro zone's blue-chip Euro STOXX 50 futures contract fell 0.4
percent by 0625 GMT. Germany's DAX futures contract edged down by 0.3
percent while France's CAC futures contract fell 0.5 percent.
Results out from leading European blue-chip companies painted a mixed
German chemicals group BASF beat market forecasts with a rise in
third quarter profit but Schneider Electric cut its forecasts while
truckmaker Volvo posted a deeper-than-expected fall in quarterly
According to the latest data from Thomson Reuters StarMine, only 57 percent
of STOXX Europe 600 companies which have reported earnings to date have
beaten or met forecasts, roughly in line with the last three quarters.
Other traders also said the fact that key European equity indexes were
hitting "overbought" territory in technical terms might lead some investors to
sell to cash in on the rally so far.
"European markets continue to look the strongest, but look a little
stretched in the near term," Central Markets chief strategist Richard Perry
wrote in a note.
Germany's DAX, which hit new record highs this week, has a 9-day
relative strength indicator (RSI) reading of 75.8 - above the 70 point level
which shows that an index is in technically "overbought" territory.
The pan-European FTSEurofirst 300 index, which hit new five-year highs this
week, also has a RSI reading around the 70 point level.
On the macroeconomic front, German IFO and UK gross domestic product (GDP)
figures are due out on Friday, while later in the day U.S. durable goods orders
data will be published.
MARKET SNAPSHOT AT630 GMT
LAST PCT CHG NET CHG
S&P 500 1,752.07 0.33 % 5.69
NIKKEI 14,088.19 -2.75 % -398.22
MSCI ASIA EX-JP 550.83 -0.63 % -3.47
EUR/USD 1.3817 0.13 % 0.0018
USD/JPY 97.03 -0.25 % -0.2400
10-YR US TSY YLD 2.509 -- -0.01
10-YR BUND YLD 1.766 -- 0.00
SPOT GOLD $1,342.20 -0.32 % -$4.34
US CRUDE $97.08 -0.03 % -0.03
> GLOBAL MARKETS-Asian stock markets fall, dollar near 2-yr low vs euro
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> TREASURIES-U.S. bond yields bounce off 3-month lows as rally pauses
> FOREX-Dollar on defensive, hits fresh 2-year low vs euro
> PRECIOUS-Gold set for second weekly gain on U.S. stimulus hopes
> METALS-Copper set to end down for 3rd week in four on demand doubts
> Brent rises above $107 on demand hopes; fading supply woes weigh
AXA, Europe's No. 2 insurer, blamed a stronger euro and seasonal weakness in
life insurance for a slowdown in revenue growth in the first nine months of the
BASF, the world's largest chemicals company by sales, exceeded expectations
for quarterly earnings on higher margins from specialty chemicals for industrial
Spain's second-biggest bank BBVA said on Friday it was changing its dividend
policy and looking to distribute between 35 percent and 40 percent of profits
annually, solely in cash.
SCHNEIDER ELECTRIC :
France's Schneider Electric posted slower quarterly organic growth and
lowered its full-year forecasts on Friday, blaming adverse currency moves, a
weak Europe and timing uncertainties over the integration of Invensys.
World number two truck maker Volvo posted a deeper-than-expected fall in
third-quarter earnings as costs for the launch of a vast range of new trucks and
fierce currency headwinds took a heavy toll.
French carmaker Renault said third-quarter revenue fell 3.2 percent as Iran
sanctions and weaker emerging market currencies more than offset gains in
pricing and sales volumes.
ST GOBAIN :
France's Saint-Gobain stuck to its full-year targets on Thursday, saying
robust growth in emerging markets, an upturn in the U.S. construction market and
stabilisation in Europe would help it offset the impact of volatile currencies.
Vinci stuck to its full-year outlook on Thursday after reporting a 5.5
percent rise in quarterly sales, driven by construction and improved traffic on
Belgian telecoms group Belgacom reported a 7.7 percent decline in third
quarter core profits, as an improved performance of its fixed internet and
digital TV business did not make up for falls in mobile phone revenues.
French retailer Carrefour SA hired two investment banks to prepare an
initial public offering for its Brazil unit, according to a report published on
the website of business magazine Exame late on Thursday.
French IT-services company Atos said third-quarter revenue fell 1.8 percent
on a like-for-like basis, hit by weak demand in Europe, although it kept its
full-year profitability targets on Friday.
Belgian pharmaceutical company UCB confirmed its full-year guidance on
Friday after growth of its three new medicines almost made up for declining
sales of its former blockbuster epilepsy treatment in the first nine months.
USG PEOPLE :
Dutch staffing firm USG People beat forecasts for third-quarter operating
profit on Friday thanks to a pick-up in Europe, and said it expected that trend
to continue in the fourth quarter.