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Europe Factors-Shares set to fall for 5th session
June 7, 2011 / 5:09 AM / 6 years ago

Europe Factors-Shares set to fall for 5th session

 (Adds details, company news; updates bookies, snapshot table)
 PARIS, June 7 (Reuters) - Financial bookmakers expect to see the main European stock indexes falling on Tuesday, set to lose ground for a fifth session in a row as growing concerns over the health of the global economy continue to rattle investors.
 Financial spreadbetters expected Britain's FTSE 100 .FTSE to open 15 to 21 points lower, or as much as 0.4 percent, Germany's DAX .GDAXI to open 20 to 35 points lower, or as much as 0.5 percent, and France's CAC-40 .FCHI to open 7 to 14 points lower, or as much as 0.4 percent.
 The S&P's 500 Index .SPX fell 1.1 percent on Monday, extending its slide to a fourth day and hitting its lowest level since March 18.
 U.S. Federal Reserve officials said recent economic data has been disappointing, with one suggesting it could delay the Fed's exit from its extremely easy monetary policy.
 "The slowdown does change when you think the timing would be for when an exit strategy would be appropriate," Eric Rosengren, president of the Boston Federal Reserve Bank, told CNBC in an interview. [ID:nN06299146]
 The euro edged up early in Asia on Tuesday. The single currency has gained more than 4 percent since climbing off the May 23 trough, which might have limited the downside pressure on European equities, said Valerie Gastaldy, head of Paris-based technical analysis firm Day By Day.
 "The recent strength in the euro blurs the readings on other asset classes such as equities. A lot of trading products such as equity and commodity ETFs are linked to the currency market. But investors should be careful because correlation strategies aren't working so well in a directionless market like the one we have now," she said.
 The euro and euro zone shares have had a relatively strong positive correlation since late 2008, and the fact that the euro gained ground over the past two weeks is said to have limited the scope of a retreat in equities so far.    
 ----------------------MARKET SNAPSHOT AT  0545 GMT------------------- 
                                      LAST        PCT CHG     NET CHG 
 S&P 500                  .SPX  1,286.17        -1.08 %      -13.99 
 NIKKEI                  .N225  9,431.82         0.55 %       51.47 
 MSCI ASIA EX-JP .MIASJ0000PUS    572.20        -0.44 %       -2.53 
 EUR/USD                  EUR=    1.4609         0.23 %      0.0033 
 USD/JPY                  JPY=     80.27         0.24 %      0.1900 
 10-YR US TSY YLD    US10YT=RR     3.002             --        0.01 
 10-YR BUND YLD      EU10YT=RR     3.011             --       -0.02 
 SPOT GOLD                XAU= $1,544.56         0.10 %       $1.51 
 US CRUDE                 CLc1    $98.57        -0.44 %       -0.44 
 --------------------------------------------------------------------- 
  
 GLOBAL MRKTS-Euro up, Aussie firm ahead of c.bank meetings [ID:nL3E7H701U]
 Wall St hits 2-1/2 month low on economic worry             [ID:nN06288857]
 Nikkei flat, attractive valuations keep tone firm          [ID:nL3E7H707P]
 Euro steadier, Aussie eyes RBA rate meeting                [ID:nL3E7H634I]
 TREASURIES-30-yr yield up before auction, 10-yr near 3 pct [ID:nL3E7H709O]
 Gold steady near 1-month top on economic concerns          [ID:nL3E7H7040]
 Brent drops below $114 on expectations of OPEC target hike [ID:nL3E7H708U]
 Copper falls; Chile strike cushions but econ anxiety grows [ID:nL3E7H706R]
  
 COMPANY NEWS:
  
 AHOLD AHLN.AS
 The Dutch grocer beat first-quarter profit forecasts, helped by the timing of Easter and potentially easing fears it is struggling to pass on higher food prices to cash-strapped shoppers in its main U.S. market. [ID:nSGE756008]
  
 SAINT-GOBAIN (SGOB.PA)
 The planned initial public offering of the French glass maker's glass packaging unit is set to move forward in the next few hours with the announcement of a price range as well as regulatory clearance, sources said. [ID:nLDE75521N]
  
 STATOIL (STL.OL)
 Norwegian energy giant Statoil agreed to sell a 24.1 percent stake in a European natural gas transport venture to a group including German insurer Allianz (ALVG.DE) and the Abu Dhabi Investment Authority for 17.35 billion Norwegian crowns ($3.23 billion).
  
 PPR (PRTP.PA)
 The French retailer and luxury goods giant is in talks to make a large acquisition in the luxury sector, La Tribune reported, citing an unnamed internal source. [ID:nLDE7552GR]
  
 CLARIANT CLN.VX
 Specialty chemicals-maker Clariant CLN.VX raised its 2011 sales and margins target and said it intended to resume dividend payments for this year.
  
 CAR MAKERS
 Automobile production in Brazil surprisingly rose in May as strong consumer demand for durable goods helped offset the impact of work stoppages in some of the nation's largest car factories, industry data showed on Monday. [ID:nN06275373]
  
 GDF SUEZ GSZ.PA
 The owner of Europe's largest gas distribution network is to sell its Italian gas grid for 772 million euros, the latest in a programme of asset sales. [ID:nLDE7550YM]
  
 IPSOS (ISOS.PA)
 The French market research group confirmed that its board had authorized talks with British marketing company Aegis AEGS.L on the possible purchase of its Synovate unit. [ID:LDE755066]
  
 ACTELION ATLN.VX
 Actelion, Europe's largest biotech company which has been under pressure from activist investor Elliott Advisors, is changing its management structure, including appointing a chief operating officer.
  
 (Reporting by Blaise Robinson)  

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