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
    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."
                                             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    
    The airline's budget carrier Germanwings will be spared painful strikes
during the nascent summer holiday season after reaching a preliminary accord
with cabin crew on higher wages. 
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Boersen-Zeitung reported on Saturday, citing an interview with finance chief
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
or any other financial obligations related to "dividend stripping".
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spare parts at dealers, prolonging delivery times and frustrating customers,
Automobilwoche reported, citing the luxury carmaker's top labour representative.
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    Chief Executive Herbert Hainer confirmed Adidas' profit outlook for this
year, though said the sportswear maker will face tough business conditions in
Europe in the second half of the year, Frankfurter Allgemeine Zeitung reported
on Saturday, citing an interview.
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francs ($9.36 billion) this year, Chief Executive Nick Hayek was quoted as
saying on Sunday, adding the important Chinese market recovered in June.
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    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
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    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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2014, a source familiar with the plans said, confirming a report by
WirtschaftsWoche published on Saturday.
    New models to be built locally include the Taigun small SUV, the Up city-car
and a new version of the Fox compact, the source said on condition he not be
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    The postal services group aims to increase operating profit to between 3.35
and 3.55 billion euros, reaffirming targets, Welt am Sonntag reported, citing
Chief Executive Frank Appel.
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risks losing core customers like Swiss food company Nestle, WirtschaftsWoche
reported on Saturday, citing an interview with chairman Hasso Plattner.
    Separately, SAP should set up shops in large cities to promote and sell its
software, the magazine cited Plattner as saying.
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    Germany's largest utility stood by its Brazilian investments, saying the
business model of its MPX subsidiary offered "a chance for growth and profits",
Der Spiegel reported, citing Chief Executive Johannes Teyssen.
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jewellery group Pomellato. 
    The entertainment-to-telecom group is exploring alternative moves to extract
cash from its Activision Blizzard unit after failing to sell part of
its 61-percent stake in the U.S. video games business, the Financial Times
reported on its website on Sunday. 
    The French bank is buying a 50 percent stake in Dutch bank ING's Chinese
insurance joint venture. 
    The number of claims filed against BP Plc's oil spill compensation fund has
risen by 18 percent over the last six weeks to a total of 195,403, according to
the claims website - even though payouts began almost a year ago and the fund
will be accepting claims until next April. 
    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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