June 28, 2011 / 5:42 AM / 7 years ago

UPDATE 2-Europe Factors-Shares set to rise, tracking U.S., Asia

(Adds futures, companies, updates snapshot table)

By Joanne Frearson

LONDON, June 28 (Reuters) - European shares were set to rise on Tuesday, tracking gains on Wall Street and in Asia, on continued optimism about France’s agreement to roll over holdings of mature Greek debt, helping ease worries about a possible default for the country.

At 0632 GMT, futures for the Euro STOXX 50 STXEc1, Germany’s DAX FDXc1 and France’s CAC 40 FCEc1 were up 0.5 to 0.6 percent.

Wall Street rose on Monday after three days of losses on the Greek optimism, while technology stocks bounced after a recent sell-off and banks gained after regulators on the weekend said institutions would need to boost capital less than expected.

Asian stocks were also buoyed by the Greek news, with the Nikkei up 0.7 percent.

The FTSEurofirst 300 index edged higher on Monday after France said French banks had outlined an agreement to roll over holdings of maturing Greek bonds, while German bankers also voiced interest in this model.

There is also rising confidence that the harsh austerity measures being debated through parliament will get a vote of approval by lawmakers on Wednesday and Thursday, so the country can receive the next tranche of the bailout programme.

If it does not get the next tranche, analysts said Greece could default, sparking a Europe-wide crisis and potential credit market freeze similar to the Lehman collapse.

The index was holding support at around 1,070, a level from where it has bounced back, but resistance was seen at 1,100, a level which it had struggled to break in the past two weeks.

But the Euro STOXX 50 volatility index , one of Europe’s main fear gauges, was up 3.8 percent on Monday, signalling investors were still nervous.

Investors were still reluctant to hold bonds issued by any of the region’s heavily indebted sovereigns, with yields on Greek and other lower-rated euro zone debt rising on Monday.

“Bond markets diverged from equity markets yesterday as European sovereign bond yields continued to rise,” Jonathan Sudaria, night dealer at Capital Markets, said.

“More savvy traders are sceptical of the measure. Despite authorities stressing that this is a ‘voluntary restructuring’, and doesn’t constitute a default, it’s not clear how much pressure was applied to French banks to accept the terms and ratings agencies may still consider it a default.”

———————————MARKET SNAPSHOT AT 0624 GMT———————————

LAST PCT CHG NET CHG S&P 500 1,280.10 0.92% 11.65 NIKKEI 9,648.98 0.74% 70.67 MSCI ASIA EX-JP 553.35 -0.04% -0.24 EUR/USD 1.4277 -0.04% -0.0005 USD/JPY 80.73 -0.17% -0.1400 10-YR US TSY YLD 2.911 — -0.02 10-YR BUND YLD 2.893 — 0.00 SPOT GOLD $1,497.55 0.09% $1.35 US CRUDE CLc1 $90.55 -0.07% -0.06

* US STOCKS-Wall St up as banks rally, gains could be brief     * GLOBAL MARKETS-Greek debt plan lifts stocks, euro             * Nikkei near 3-week high, seen capped ahead of Greek votes     * FOREX-Euro edges higher, but mood fragile                     * Brent above $106; Greek debt plan eases risk of contagion     * TREASURIES-Bonds slip as investors take on riskier assets     * PRECIOUS-Gold inches up on weak dollar, Greece hopes          * METALS-Copper up on hopes for Greece austerity approval 

STANDARD CHARTERED

The emerging markets-focused bank said income growth caught up with cost growth in the first half of this year, as belt-tightening helped reverse more than a year of expenses outpacing profit.

RIO TINTO

The global miner is comfortable with the company’s multibillion-dollar project budgets in Australia, where labour, input and services costs were all increasing, Chief Executive Tom Albanese said on Tuesday.

LONDON STOCK EXCHANGE

The LSE said a total of 5 proxy advisory firms have recommended their offer for the Toronto Stock Exchange .

EADS

China could order dozens of Airbus jetliners during a visit by Premier Wen Jiabao to Berlin, according to sources, but the deals are clouded by a spat between Beijing and Europe over aviation carbon tariffs.

BAYER (BAYGn.DE)

Germany’s largest drugmaker, plans to double its sales in China to 6 billion euros ($8,59 billion) by 2015, a local media reported on Tuesday, citing the firm’s chief executive.

ROCHE

A U.S. bhealth panel begins meeting Tuesday to consider whether the world’s best-selling cancer medicine, Roche Holding AG’s Avastin, should retain approval for treating breast cancer.

CARREFOUR

French retailer Carrefour said it had received an offer to clinch a partnership in Brazil with Grupo Pao de Acucar to create the largest player in the country’s retail industry.

FIAT

Suzuki Motor Corp said on Monday it had agreed to buy 1.6-litre diesel engines from Fiat’s powertrain unit to put on a car it will build in Hungary from 2013.

INTESA SANPAOLO

There is room for collaboration between European banks and the Greek government over the country’s debt crisis, Corrado Passera, chief executive of Intesa Sanpaolo SpA , told a briefing on Tuesday in Beijing to mark 30 years of the bank’s business in China.

UBS

An 81-year-old disbarred New York maritime lawyer admitted hiding more than $26.4 million at Swiss bank UBS AG to avoid paying taxes, and agreed to pay a $9.8 million fine in pleading guilty on Monday.

BBVA

The Paraguayan unit of Spanish bank BBVA replaced its chief executive and board of directors on Monday as it seeks to limit damage from an alleged multimillion dollar Ponzi scheme scandal.

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