LONDON May 13 European shares were set to rise at the open on
Tuesday, with key regional indexes on track to test recent peaks, as a rally in
U.S. shares and upbeat updates from blue-chips such as steelmaker ThyssenKrupp
supported risk appetite.
At 0637 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were up 0.3-0.4 percent.
The Dow and the S&P 500 closed at record highs on Monday and the Nasdaq
rallied as shares of Internet and biotech companies advanced. Asian shares also
rose, led by Indian equities on hopes of an election victory for the
business-friendly opposition party.
Germany's ThyssenKrupp raised its full-year earnings outlook on
Tuesday, while aerospace group Airbus Group posted a
narrower-than-expected drop in core earnings and reaffirmed its financial goals
for the year.
ThyssenKrupp's shares were indicated to open 3.2 percent higher.
Renewed signs of brisk mergers-and-acquisitions activity may also provide
some support. U.S. drugmaker Pfizer kept up the pressure on bid target
AstraZeneca on Tuesday, saying its offer represented compelling value
for a company which would otherwise face challenges as a standalone firm.
Pfizer is planning to return with a higher bid for AstraZeneca before the
U.S. drugmaker considers going hostile, Bloomberg reported late on Monday,
citing people familiar with the matter.
Investors were set to focus on the ZEW monthly poll of German investor and
analyst sentiment, due at 0900 GMT and expected to show a slight improvement in
current conditions and a slight deterioration in sentiment. U.S. retail sales at
1230 GMT may also affect market direction later in the session.
The CAC was 0.3 percent away from an all-time high of 4,507, which it hit
last week, while the FTSE was just 0.2 percent off its high for the year at
6,867. The Dax's all-time high, set in January, was nearly 1 percent above
"The FTSE looks set to test the year's double-top at 6,867 and the all-time
high print from 1999 (at 6,950) will be the market's next target," Chris Weston,
chief market strategist at IG, wrote in a trading note.
"The CAC and DAX also look like testing all-time highs and could require a
bit of a nudge after the open and perhaps that comes in the shape of a strong
U.S. retails sales report or German ZEW survey."
Comments by Bundesbank chief Jens Weidmann, due to speak later on Tuesday,
may also affect sentiment as the market speculated about fresh stimulus from the
European Central Bank at its June meeting.
"(It) seems that the mix of low volatility, easing central bank policy and
an improving trend in developed market growth has seen traders look at equities
as the asset class of choice," Weston said.
The pan-European FTSEurofirst 300 rose 0.7 percent to 1,364.48 on
Monday, having hit a high of 1,365.26, not seen since May 2008, earlier in the
Europe bourses in 2014: (link.reuters.com/pad95v)
Asset performance in 2014: (link.reuters.com/rav46v)
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Germany's biggest utility said its core earnings fell 12 percent in the
first three months of the year, blaming a mild winter in Europe and weak
wholesale prices that have made its gas-fired power stations unprofitable.
Indicated 0.1 percent higher
CEO Tim Hoettges said in an interview with Handelsblatt that Europe's
telecoms need to be allowed to operate on a level playing field with rivals such
FRESENIUS, FRESENIUS MEDICAL CARE
Fresenius indicated 0.3 percent higher
FMC indicated 0.2 percent higher
Q1 IFRS report due. Results already released on May 6.
Indicated 3.2 percent higher
Fiscal Q2 results due. The steelmaker's adjusted EBIT is seen rising 51
percent to 296 million euros. Poll:
Indicated 0.4 percent higher
Full April traffic figures due at 0500 GMT. The airport operator said last
week that passenger numbers at Frankfurt airport rose 0.8 percent in April.
The aerospace group posted a narrower-than-expected 5 percent drop in core
earnings, despite lower aircraft deliveries and higher research and development
spending, and reaffirmed its financial goals for the year.
France's second-largest bank said it is aiming for 3 percent annual revenue
growth over the next three years, helped by retail banking in Eastern Europe,
Russia and Africa.
New York state's banking regulator is seeking hundreds of millions of
dollars from Credit Suisse in its probe of potential tax evasion involving the
Swiss bank, according to sources close to the matter, which could push an
eventual settlement with U.S. authorities over $2 billion.
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Swiss Life, Switzerland's biggest dedicated life insurer, said on Tuesday
premium income fell by 1 percent in the first three months of 2014, with its
division managing wealthy people's money declining by more than 40 percent.
For more click on
French transport firm Transdev, 50 percent owned by water and waste group
Veolia Environnement, said the board of its SNCM Corsica ferry unit had not
renewed the mandate of its chief executive and would appoint a replacement soon.
Labour representatives at Bouygues Telecom expect the company to increase
the number of potential job cuts to as many as 2,000 in a cost-saving plan, a
trade union official said.
France's economy minister urged Bouygues Telecom to explore a tie-up with
other operators after it lost out in a battle for control of SFR to rival
The carmaker said Nissan Motor Co contributed 415 million euros to
its net income in the first quarter of 2014.
The French construction and concessions company confirmed its full-year
sales target after first-quarter revenue rose 4.5 percent, supported by a
rebound in construction activity across Europe.
The power group priced its dual tranche deal, having placed 1.2 billion
euros of bonds maturing in 2020 and 1.3 billion euros of bonds maturing in 2026.
(Reporting By Francesco Canepa; Editing by Prateek Chatterjee and Lionel