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European Factors to Watch-Futures up as Japan PM election win helps sentiment
July 22, 2013 / 6:36 AM / 4 years ago

European Factors to Watch-Futures up as Japan PM election win helps sentiment

LONDON, July 22 (Reuters) - European equity index futures rose on Monday,
helped by an election win over the weekend by Japanese Prime Minister Shinzo Abe
which traders said should help sentiment.
    Futures for the euro zone's blue-chip Euro STOXX 50 index were up
by 0.2 percent at 0620 GMT. Futures for Germany's DAX rose 0.3 percent,
futures for France's CAC advanced by 0.1 percent while the FTSE 100
futures contract also rose by 0.2 percent.        
    Abe's ruling bloc won decisively in an election on Sunday.
    The victory, which was widely expected, should make it easier for him to
push through painful economic reform, the "Third Arrow" of his economic steps to
end deflation. The other two arrows are ultra-easy monetary policy and spending.
    Terry Torrison, managing director at Monaco-based McLaren Securities, said
Abe's win would help sentiment, and added that some reassuring corporate
earnings news on Monday would also boost markets.
    "Abe's win is good news but it had been well flagged. We're better across
the board this morning but in very thin volumes," said Torrison.
    "The easy way for the market at the moment is up. If there's no real
pressure on, we tend to drift higher," he added.
    Torrison also said forecast-beating results from Swiss bank UBS on
Monday might help equity markets and financial stocks. 
    The pan-European FTSEurofirst 300 index has risen 6.6 percent since
the start of 2013. The index ended flat on Friday but chalked up its fourth
straight week of gains. 
 MARKET SNAPSHOT AT 0622                            
                                   LAST    PCT CHG  NET CHG
 S&P 500                       1,692.09     0.16 %     2.72
 NIKKEI                       14,658.04     0.47 %    68.13
 MSCI ASIA       <.MIASJ0        515.83     0.26 %     1.35
 EX-JP           000PUS>                            
 EUR/USD                         1.3147     0.04 %   0.0005
 USD/JPY                         100.08    -0.54 %  -0.5600
 10-YR US TSY    <US10YT=         2.477         --    -0.01
 YLD             RR>                                
 10-YR BUND YLD  <EU10YT=         1.515         --    -0.01
 SPOT GOLD                    $1,318.30     1.74 %   $22.56
 US CRUDE                       $108.46     0.38 %     0.41
  > GLOBAL MARKETS-Japanese stocks lose steam as yen bounces 
  > Nasdaq, Dow slip on tech weakness, S&P 500 edges up 
  > Nikkei gains as Abe's big election win boosts economic recovery hopes 
  > U.S. bond prices rise for second week; weak stocks support 
  > Yen rises in choppy trade after Japan PM's election win 
  > Gold rises to 1-month high on weaker U.S. dollar 
  > London copper rises on softer dollar, China optimism 
  > Oil above $108 on demand hopes, US oil at premium to Brent 
    UBS :
    UBS said it settled a Federal Housing Finance Agency lawsuit over
soured mortgage investments, taking a 865 million Swiss franc ($919.63 million)
charge against second-quarter earnings for litigation, impairments and other
    Philips, the Dutch healthcare, lighting and consumer appliances
group, reported higher-than-expected second-quarter results driven by all three
businesses after two years of job cuts, divestments, and a focus on core
    Belgian telecoms operator Mobistar SA sharply cut its guidance
for revenue and profit this year after earnings tumbled in the second quarter
and with a gloomy view for the rest of the year. 
    The carmaker is in preliminary talks to sell part of its Banque PSA Finance
financing arm to Spanish bank Banco Santander or merge it with
Santander assets, the Wall Street Journal reported.
    The board of the entertainment group plans to discuss a special dividend of
more than $3 billion linked to its Activision Blizzard unit at a meeting on
Monday, as well as progress in negotiations to sell its Maroc Telecom business
to Emirates Telecommunications, the Wall Street Journal reported.
    Deutsche Bank is expected to announce during its second-quarter results its
plans to reach a minimum 3 percent overall equity to loans ratio in the next two
and a half years, the Financial Times reported on Sunday, citing people briefed
on the plans. 
    Germany's bank bailout fund Soffin expects Berlin to sell its 17 percent
stake in Commerzbank in the next six months, Wirtschaftswoche magazine quoted a
source close to Soffin as saying. Soffin declined comment. 
    Separately, Der Spiegel said there was no parliamentary majority favouring a
sale of the stake, quoting politicians from the governing coalition Free
Democrats, as well as from the opposition Greens and Social Democrats.
    SAP :
    SAP said its Co-Chief Executive Jim Hagemann Snabe would move to the
company's supervisory board next May, thus leaving fellow Co-Chief Bill
McDermott as sole helmsman, the software maker said in a regulatory filing on
    Swiss private bank Julius Baer on Monday said adjusted net profit
rose more than 25 percent in the first half, beating analyst estimates as
increased client activity lifted operating income and gross margins.

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