(Adds detail, futures)
LONDON, July 22 European stocks were seen rebounding on Tuesday
as traders took heart from signs of collaboration between pro-Russian rebels in
Ukraine and international investigators into the downing of an airliner last
Some weak results from blue chips such as Credit Suisse Group,
however, were likely to keep gains in check.
At 0622 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were between 0.3 percent
and 0.4 percent higher.
The remains of some of the nearly 300 victims of the Malaysia Airlines plane
downed over Ukraine were making their way to the Netherlands on Tuesday as a
senior Ukrainian separatist leader handed over the plane's black boxes to
The prospect of heightened tensions between Russia and the West following
the plane incident, combined with a civilian bloodshed in an Israeli offensive
in the Gaza Strip, have weighed on equities in the past week and traders
expected the market to remain jittery.
"There will probably be some relief early doors but with some risk-off
remaining," Mike Reuter, a broker at Tradition, said. "There's no resolution to
the conflict. Fighting in Donetsk continues and the Gaza conflict is also
European Union foreign ministers were scheduled on Tuesday to discuss
further penalties against Russia, but the most they are expected to do is to
speed up the implementation of sanctions against individuals, and possibly
companies, agreed in principle last week before the plane was brought down.
U.S. indexes closed well off their daily lows on Monday, signalling
investors had not lost their appetite for risk assets and sparking a rebound in
global shares overnight.
Investors were also set to digest a raft of corporate results, with Credit
Suisse Group in the spotlight after it reported a wider-than-expected quarterly
Results from Swatch Group, the world's largest watchmaker, and
Norwegian aluminium producer Norsk Hydro also disappointed, although
the former said it expected a positive second half of the year.
Adding to the soft tone, advertising agency Publicis warned that
it would be "very difficult" to meet its annual target of 4 percent organic
sales growth after a second-quarter slowdown.
On the upside, ARM Holdings, the British company whose processor
designs power Apple's and Samsung's smartphones, posted a 9 percent rise in
second-quarter profit Actelion, Europe's largest biotech company,
hiked its 2014 profit forecast for the second time this year.
Europe bourses in 2014: (link.reuters.com/pad95v)
Asset performance in 2014: (link.reuters.com/rav46v)
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> LONDON ZINC HITS 3-YEAR TOP, ALUMINIUM NEAR 16-MONTH PEAK
> BRENT HOLDS STEADY ABOVE $107; FOCUS ON UKRAINE, US STOCKPILES
The operator of the Channel Tunnel linking France and Britain reported a 6
percent rise in first-half core profit on Tuesday, driven by a recovering
British economy, and strong freight and passenger traffic.
BANCO ESPIRITO SANTO
Portugal's president warned on Monday that fallout from the financial
troubles of the founding family of Banco Espirito Santo (BES) could affect the
wider economy, while the bank said it was appointing a special financial advisor
to help boost its capital structure.
Spain will sell Catalunya Banc, one of the last lenders still in state hands
after the financial crisis, to the country's second-biggest bank BBVA for just
under 1.2 billion euros ($1.6 billion), said bank restructuring fund FROB on
The State-controlled French utility group has agreed to cut electricity
tariffs for a group of energy-intensive companies in France to help them compete
with rivals in countries such as the United States where power prices are lower.
Italian state lender Cassa Depositi e Prestiti (CDP) is close to agreeing
the sale of a 35 percent stake in a vehicle controlling Italy's energy grids to
the State Grid Corporation of China, sources close to the matter said on Monday.
As part of an Italian privatisation drive to cut public debt, CDP is trying
to sell up to 49 percent of CDP Reti - the vehicle that controls gas grid Snam,
and soon, power grid Terna.
Spanish gas distributor Enagas reported before market open that first half net
profit rose 3.9 percent.
The government will investigate prices before tax charged by oil companies at
Spanish petrol stations, Expansion newspaper reported on Tuesday, after a recent
surge in prices.
Roche said the FDA had granted Avastin priority review for recurrent
platinum-resistant ovarian cancer.
AIR LIQUIDE, OCI
The industrial gases group said it entered a long-term agreement to supply
oxygen to Natgasoline, a unit of OCI, for its methanol plant in Beaumont, Texas.
The French shopping mall operator slightly raised its cash flow forecast for
the year on expectations it will benefit from refocusing its portfolio on prime
properties in its key markets and lower interest rates.
The semiconductor engineering company said first-quarter sales rose 14
percent to 49.5 million euros.
The healthcare company said it bought Argentinian allergen immunotherapy
company Alergo Pharma for an undisclosed amount.
French property group Gecina on Tuesday kept its outlook for a stable
recurrent net income in 2014, despite posting a 0.7 percent decline in the
first-half to 165.6 million euros.
Gross rental income came to 293.9 million euros at June 30, 2014, down 0.2
percent. On a like-for-like basis, rental income was up 2.2 percent.
The cancer drug company said its commercial partner, Innocutis Holdings,
announced the launch of cold sore treatment Sitavig in the United States.
(Reporting By Francesco Canepa; Editing by Anupama Dwivedi, Subhranshu Sahu and