LONDON Nov 26 European shares headed for a steady start on
Tuesday after rising to a one-week high in the previous session, consolidating
ahead of an expected push higher into the new year.
A slew of U.S. data could provide some direction in the near-term. Focus
will be on chain store sales data from ICSC/Goldman Sachs at 1245 GMT, housing
starts at 1330 GMT, Redbook's retail sales at 1355 GMT, S&P Case/Shiller's home
price index for September at 1400 GMT and consumer confidence data for November
at 1500 GMT.
"The market is a bit tired and due for some consolidation after recent
rally, which was less broad-based," said Philippe Gijsels, head of research at
BNP Paribas Fortis Global Markets.
"Still, after a pause, we see markets moving to new highs going into 2014.
The world economy is recovering at a slow pace and monetary policies will remain
expansionary for quite some time to come. The ECB is probably going to cut rates
once more. This is probably not priced in yet."
At 0730 GMT, futures for the Euro STOXX 50, Germany's DAX
and France's CAC were 0.02 to 0.09 percent lower.
Futures for Britain's FTSE 100 were down 0.1 percent. Investors will
focus on comments from Bank of England Governor Mark Carney, who will answer
questions about monetary policy and the economic outlook from lawmakers on
Tuesday, for hints about the timing of any rate hike.
The pan-European FTSEurofirst 300 finished 0.4 percent firmer at
1,302.24 points in the previous session after climbing to a one-week high, while
Germany's DAX rose 0.8 percent to close at a new life-time high. In the
United States, the Dow Jones index set another record peak.
Some firms could witness sharp share moves after their corporate
announcements. German fashion house Hugo Boss said it will not meet
its target in core operating profit in 2015, while French spirits group Remy
Cointreau warned of a double-digit drop in full-year operating profit.
British water company Severn Trent posted a 5.8 percent drop in
first-half underlying pretax profit after operating costs rose due to the
adoption of private drains and sewers.
The third-quarter earnings season has disappointed investors. Acccording to
StarMine, 49 percent companies on the STOXX Europe 600 have missed
their earnings forcasts, while 63 percent have missed revenue predictions,
against 42 percent and 43 percent respectively in the previous quarter.
> Oil prices stabilise after Iran deal, Asian shares steady
> Dow ends at record high; Nasdaq loses grip on 4,000
> Nikkei pulls back from 6-mth high as exporters sag; Fujifilm rises
> TREASURIES-Prices rise slightly to start holiday-shortened week
> Yen bounces off lows but still seen vulnerable
> Gold holds near 1-week high; physical demand drops off
> LME aluminium stays near 4-1/2-month lows as inventories weigh
> Brent holds near $111 as timing of rise in Iran oil exports unclear
German fashion house Hugo Boss said on Tuesday it will not meet its target
of 750 million euros ($1.01 billion) in core operating profit in 2015.
Norwegian drug maker Algeta has received a 336 crown per share
preliminary takeover bid from Bayer valuing the company at 14.76 billion crowns
($2.41 billion), it said on Tuesday.
French spirits group Remy Cointreau warned on Tuesday of a double-digit
decline in full-year operating profit because of a slowdown in China that will
continue to weigh on demand for its premium cognac in the second half of this
British water company Severn Trent posted a 5.8 percent drop in first-half
underlying pretax profit to 141.3 million pounds on Tuesday after operating
costs rose due to the adoption of private drains and sewers.
The carmaker is planning 30 new cars by 2020, its finance chief Bodo Uebber
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