LONDON Jan 7 European equities were expected to
open slightly higher on Tuesday, mirroring gains in U.S. stock
index futures, with firmer commodity prices seen prompting
investors to look for beaten-down mining and energy shares.
Brent oil futures climbed to trade above $107 a
barrel as cold weather across the central United States
threatened production, while key base metals prices rebounded
after sharp declines in the previous session.
U.S. stock index futures were all up
0.2 percent after Wall Street ended lower on Monday, when the
FTSEurofirst 300 index closed 0.2 percent weaker.
The STOXX Europe 600 basic resources index, which
fell more than 2 percent in the previous session to record its
worst one-day drop in five months on concerns about metals
demand in top consumer China, could bounce back as investors
look for bargains after recent declines.
Societe Generale's European equity strategists backed the
mining and oil sectors - the two worst-performing parts of the
market in 2013 - arguing that concerns over a Chinese economic
slowdown have been exaggerated and that oil stocks should
benefit from rising production and free cash flow.
"We recommend buying the laggards. Or maybe better still,
loving what everybody else hates (oil, mining)," it said in a
The European mining index fell 13.4 percent last year to
make the sector the worst-performer in Europe. The second
worst-performer was the STOXX Europe 600 Energy sector,
which rose 3.8 percent but underperformed bigger gains in other
At 0729 GMT, futures for Britain's FTSE 100,
Germany's DAX, France's CAC and the Euro STOXX
50 were 0.1 to 0.2 percent higher.
Commerzbank said the Euro STOXX 50 futures have been showing
a consolidation phase after last week's high of 3,127 points and
the pattern would be sustained in the medium term, as long as
the support zone at 2,990-2,910 was not breached.
"Based on the generally positive medium-term technical
conditions, the conservative sale of February Euro STOXX 50
puts, strike 2,800 is of interest," Commerzbank said in a note.
On the macro economic front, data showed German retail sales
rose 1.5 percent month-on-month in November. The market also
awaits German employment figures due at 0855 GMT.
> Asian shares steady, dollar rebounds after weak U.S. data
> Wall St dips for third straight day after mixed data
> Nikkei sags for 2nd day hit by weak U.S. data
> U.S. bond prices gain as services data disappoints
> Dollar firmer vs yen but gains limited after disappointing
> Gold near 3-wk high on softer equities, physical demand
> London copper edges up as investors eye rosier growth
> Brent rebounds above $107 as Libya conflict escalates
DEUTSCHE BANK, COMMERZBANK
Banks in the European Union face limits on taking market
bets with their own money under a draft EU proposal, seen by
Reuters on Monday, that represents a central plank of attempts
to prevent a repeat of the financial crisis of 2007 to 2009.
ROYAL DUTCH SHELL
Shell, Austria's OMV and Japan's Mitsui
will drill an exploration well off New Zealand's southeast
coast, becoming the latest group to search for natural gas in
the country's largely untapped deepwater basins.
U.S. prosecutors are examining a new set of Credit Suisse
Group AG documents, including internal emails, that may show
whether a bank committee charged with overseeing the quality of
home loans ignored red flags to the detriment of mortgage
investors, according to a source familiar with the documents.
The budget airline reported a 3.5 percent rise in passenger
numbers for December. British Airways' parent company
International Airlines Group reports passenger traffic
numbers later in the day.
The reinsurer expects an increase in typhoon activity over
the coming years, with the Philippines being particularly
vulnerable, executive board member Ludger Arnoldussen told
newspaper Handelsblatt. Related news
European plane-maker Airbus won its annual order
race with U.S. rival Boeing in 2013, industry sources
The French company has been awarded a 30-year British waste
disposal contract - as part of a consortium - worth 2 billion
euros ($2.73 billion) in total revenue.