LONDON, May 16 Major European equity indexes were seen edging
higher at the open on Friday, finding some technical support after they posted
the biggest daily drop in several weeks on the previous day.
German travel and tourism group TUI AG was in focus after it
reported a smaller-than-expected quarterly loss and said it was on track to meet
its targets for the next two years.
Appetite for shares remained subdued, however, with a drop in U.S. Treasury
yields overnight and a rise in the price of insuring against further jitters on
the stock market - as measured by the U.S. VIX and the euro zone VSTOXX
volatility indexes - pointing to greater caution among investors.
At 0627 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were up between 0.3
percent and 0.4 percent.
Despite Thursday's drop, the FTSE, DAX, CAC and Euro STOXX 50 remain well
above their 50-day moving average, a key momentum indicator. The FTSE and the
DAX were still on track to record a gain for the week, while the CAC was set to
post its first weekly loss in a month.
"Yesterday's price action has sent a first sign of weakness but the Euro
STOXX 50 cash index remains supported by an internal trend line drawn from May
2013 and by the rising 50-day simple moving average," said Nicolas Suiffet, an
analyst at Paris-based technical analysis firm Trading Central.
"Thus, the trend remains positive as long as prices are holding above the
support base at 2970, which corresponds to its March bottom and internal trend
France's CAC recorded its steepest daily fall since late March on Thursday
and Italy's FTSE MIB fell by the most since February 2013 after
weaker-than-expected GDP figures from the both countries.
"Markets are vulnerable because growth expectations are a little bit too
high," said Michael Hewson, chief market analyst at CMC Markets UK.
"The gains we've seen in the periphery pretty much price in a recovery there
so any disappointing numbers would cause weakness in those indexes."
Europe bourses in 2014: (link.reuters.com/pad95v)
Asset performance in 2014: (link.reuters.com/rav46v)
MARKET SNAPSHOT AT 0626 GMT
LAST PCT CHG NET CHG
S&P 500 1,870.85 -0.94 % -17.68
NIKKEI 14096.59 -1.41 % -201.62
MSCI ASIA EX-JP 486.41 0.09 % 0.45
EUR/USD 1.3712 0.01 % 0.0002
USD/JPY 101.55 -0.01 % -0.0100
10-YR US TSY YLD 2.500 -- 0.00
10-YR BUND YLD 1.314 -- 0.01
SPOT GOLD $1,296.10 0.01 % $0.10
US CRUDE $101.85 0.34 % 0.35
> Stronger yen hits Japan shares, lower yields pressure dollar
> Wall St falls for 2nd day; small caps slide again
> Nikkei tumbles on strong yen; fall in US bond yields raise concerns
> U.S. Treasury 10-yr yields tumble to lowest in six months
> Euro inches away from lows, fall in U.S. yields hurts dollar
> Gold below $1,300; platinum heads for best week in 3 months
> Nickel faces 6 pct weekly loss but still up 35 pct this year
> Brent holds above $109 on Ukraine tensions
Credit Suisse Group AG is expected to plead guilty and pay more than $2.5
billion to U.S. authorities to resolve charges that the Swiss bank helped
Americans evade U.S. taxes, people familiar with the discussions said on
For more, click on
ROYAL BANK OF SCOTLAND
Hundreds more investors have jumped aboard an unprecedented group action
against RBS, alleging they were misled during a record rescue cash call in 2008,
and are claiming damages of roughly 4 billion pounds ($6.7 billion).
The software company is planning to cut between 1,500 and 2,500 jobs as
software programmes switch to the cloud, meaning fewer onsite staff are
required, a person with knowledge of the matter told Reuters.
Separately, the group's incoming chief financial officer Luka Mucic told
weekly Euro am Sonntag that in the long term, cloud computing would carry the
same profit margins as SAP's conventional software business. Future takeover
deals would likely be bolt-on, he added.
The carmaker's buyout offer for minority shareholders in truckmaker Scania
ends at 1500 GMT. VW said on May 13 it had 90.5 pct of Scania, enough to force
out the remaining owners.
(Reporting By Francesco Canepa; Editing by Anand Basu and Lionel Laurent)