July 8, 2013 / 5:26 AM / 4 years ago

European Factors to Watch-Shares to rally as Greece set for aid

LONDON, July 8 (Reuters) - European stocks are seen opening higher on
Monday, rebounding following sharp falls at the end of last week, with investors
in the region focused on Greece as it looks set to reach a deal with its lenders
over its latest aid payment.
    At 0623 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were 0.5 to 0.8 percent
higher.
    Miners and banks bore the brunt of a European market drop on Friday after a
stronger-than-expected U.S. jobs report raised expectations that the U.S.
Federal Reserve may soon start to slow its stimulus programme. 
    But sentiment improved after EU and Greek officials said on Sunday that
Greece was likely to reach a deal with foreign lenders reviewing its bailout
before euro zone finance ministers meet on Monday to decide on further aid.
 
    Over the weekend Portugal's most recent crisis also eased, after the prime
minister promoted the head of the junior coalition party to be his deputy on
Saturday, hoping to end a political rift that threatened to bring down the
government and endanger the country's own bailout. 
    "European finance ministers meet to discuss all things Portugal, Cyprus and
Greece, with the latter looking less concerning after the Greek Finance Minister
Yannis Stournaras said the government will reach a deal with creditors in the
short term," Chris Weston, chief market strategist at IG, said in a note.
    "So, with a stronger finish in the US and mixed Asian markets it looks as
though Europe will open on a constructive footing."
    Wall Street pushed on to a positive close despite dipping in line with
European stocks after the nonfarm payrolls report on Friday, taking heart from
improved growth prospects and overcoming concerns that that the Federal Reserve
may begin scaling back its stimulus efforts as soon as September. 
    Also in focus on Monday will be a speech to European Parliament by European
Central Bank President Mario Draghi, as investors seek clues as to how long he
will keep rates at record lows.
    On Thursday Draghi said the ECB would keep interest rates at record lows for
an "extended" period and may yet cut further, helping the pan-European
FTSEurofirst 300 to its biggest gain in 11 months. 
 
    "The forward guidance that was given was very vague when compared with other
central banks," Craig Erlam, market analyst at Alpari, said. 
    "Draghi may use today to clear this up, or at least provide more insight
into why the ECB has chosen now to offer some kind of guidance on rates."
        
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  MARKET SNAPSHOT AT 0622 GMT: 
                                             LAST  PCT CHG  NET CHG
 S&P 500                                 1,631.89   1.02 %    16.48
 NIKKEI                                 14,109.34   -1.4 %  -200.63
 MSCI ASIA EX-JP                           492.78  -1.92 %    -9.67
 EUR/USD                                   1.2824  -0.05 %  -0.0006
 USD/JPY                                   101.01  -0.17 %  -0.1700
 10-YR US TSY YLD                           2.696       --    -0.04
 10-YR BUND YLD                             1.707       --    -0.02
 SPOT GOLD                              $1,222.00  -0.11 %   -$1.31
 US CRUDE                                 $103.20  -0.02 %    -0.02
 
  > Asian shares fall on Fed taper fears after jobs data         
  > Wall St gains as jobs data signals stronger economy        
  > Nikkei drops on Asian markets' weakness                
  > TREASURIES-Yields jump as U.S. jobs data stoke Fed fears    
  > Dollar makes big strides as strong U.S. jobs sharpen Fed view    
  > PRECIOUS-Gold falls as U.S jobs growth stokes stimulus fears    
  > METALS-London copper edges up; U.S. stimulus worries cap gains    
  > Brent crude hits 3-mth high on Egypt unrest, supply worries    
    
    COMPANY NEWS:
    
    LUFTHANSA 
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    DEUTSCHE BANK 
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Stefan Krause. 
    Separately, the bank said it's carrying out an internal inquiry into share
transactions before and after the dividend payout dates of stocks. The review is
still underway, though the bank said it doesn't expect to incur tax repayments
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saying on Sunday, adding the important Chinese market recovered in June.
    For more click on 
    
    CHARLES VOEGELE 
    Tages-Anzeiger newspaper reports Voegele board has decided to sell the
German, Belgian, Dutch and eastern European business and keep only the
profitable Swiss and Austrian businesses; story cites spox as saying board only
decided to withdraw from Poland and Czech Republic and declines to comment on
sale plans 
    For more click on 
    
    DAIMLER 
    France has blocked the registration of some new Daimler Mercedes cars which
an EU source said was because of a controversial air conditioning coolant.
 
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    DEUTSCHE POST 
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software, the magazine cited Plattner as saying.
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    E.ON 
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    KERING 
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    VIVENDI 
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its 61-percent stake in the U.S. video games business, the Financial Times
reported on its website on Sunday. 
    
    BNP PARIBAS 
    The French bank is buying a 50 percent stake in Dutch bank ING's Chinese
insurance joint venture. 
    
    BP 
    The number of claims filed against BP Plc's oil spill compensation fund has
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the claims website - even though payouts began almost a year ago and the fund
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    LLOYDS BANKING GROUP 
    Singapore state investor  Temasek has not approached the British
government about buying a 4.5 billion pound ($6.70 billion) stake in
part-nationalised Lloyds Banking Group, industry sources told Reuters
on Sunday.

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