February 1, 2013 / 6:51 AM / in 5 years

European Factors to Watch-Shares mixed, focus on U.S. jobs

LONDON, Feb 1 (Reuters) - European shares were set to open mixed on Friday,
with Some traders betting on better-than-expected U.S. jobs data, while signs of
just a mild recovery in China and some disappointing earnings reminding
investors to stay cautious.
    At 0747 GMT, futures for Euro STOXX 50 were down 0.2 percent,
Germany's DAX futures were flat and France's CAC futures were up 0.2 percent.
    Some surveys suggested Asia's manufacturers faced a challenging business
climate in the coming months, with China's vast factory sector managing only a
shallow rebound at the start of 2013..
    The market's main focus will be on U.S non-farm payrolls data at 1330 GMT.
Economists forecast that 160,000 new jobs were created in January, against
155,0000 in the previous month, pointing to modest growth in the economy. The
unemployment rate is expected to be steady at 7.8 percent. 
    "Traders will be hoping that today's non-farm payroll figure will be able to
rejuvenate bullish spirits by having a similar upside surprise as did this
week's ADP jobs figure." Jonathan Sudaria, dealer at Capital Spreads, wrote in a
    The ADP National Employment Report showed on Wednesday U.S. private
employers added 192,000 jobs in January, against expectations of 165,000 jobs.
    Investors are expected to stay cautious following poor results from some
firms. Home appliances maker Electrolux reported a
smaller-than-expected rise in core operating profit for the fourth quarter,
while Spanish lender BBVA's net profit fell 44 percent in 2012.
    Despite some disappointing numbers from some major companies, the
fourth-quarter earnings season have been progressing well. 
    According to Thomson Reuters StarMine data, just 16 percent of companies on
the STOXX Europe 600 index have so far reported fourth-quarter
earnings, but 64 percent of them have met or beaten forecasts.
    Among sectors, mining shares could advance, tracking a rise in base metals
prices on expectations of an improvement in demand for raw materials.
     MARKET SNAPSHOT AT 0747 GMT                                   
                                                  LAST    PCT CHG   NET CHG
     S&P 500                                  1,498.11    -0.26 %     -3.85
     NIKKEI                                  11,191.34     0.47 %     52.68
     MSCI ASIA EX-JP                            555.34    -0.19 %     -1.07
     EUR/USD                                    1.3621     0.32 %    0.0043
     USD/JPY                                     92.16     0.48 %    0.4400
     10-YR US TSY YLD                            2.007         --      0.02
     10-YR BUND YLD                              1.694         --      0.01
     SPOT GOLD                               $1,664.20     0.07 %     $1.21
     US CRUDE                                   $97.55     0.06 %      0.06
    * Asian shares retreat after China PMI, U.S. payrolls eyed   
    * Nikkei rises, heads for longest weekly run since 1959      
    * S&P 500 posts biggest monthly gain since Oct 2011          
    * Euro surges 1 pct vs yen, hits highest since April 2010    
    * LME copper below 4-mth top after China factory data        
    * Gold headed for weekly rise; US jobs data in focus         
    * Brent hits more than 3-mth high                            
    * Treasuries-Prices steady in mixed U.S. data                
    Strong demand for broadband and tight cost control helped Britain's BT to
post a better-than-expected 7 percent rise in third-quarter profit, and to keep
its outlook unchanged. 
    Home appliances maker Electrolux reported a smaller-than-expected rise in
core operating profit for the fourth quarter after being hit by falling European
sales and hoped North America and emerging markets would help it this year.
    Spanish lender BBVA said on Friday that its net profit fell 44 percent in
2012 after it booked big provisions at the end of the year against soured
property assets in its home market. 

    The French bank warned that its fourth quarter results would be battered by
3.8 billion euros ($5.16 billion) in charges as the French bank reels from
ill-timed acquisitions from before the 2008 financial crisis. 
    New chief executive Jean-Bernard Levy is set to announce soon a
reorganisation of the defence electronics group, daily Les Echos reported citing
unnamed sources. 
    Airbus has studied alternatives to lithium-ion batteries for its next jet,
the A350, and has time to adapt to any rule changes prompted by the problems
that have grounded Boeing Co's 787 Dreamliner, its top executive said.
    Ratings agency Standard & Poor's cut its long-term credit rating on the
scandal-hit bank by one notch to "BB" on Thursday, citing concerns over
potential losses from structured finance contracts. 
    Louis Vuitton, the world's biggest luxury brand in terms of sales, is
planning to dampen its expansion worldwide and focus on high-end products to
preserve its exclusive image, said Bernard Arnault, chief executive of parent
    The French nuclear group increased revenue in 2012 thanks to maintenance
contracts for its large base of existing reactors, without selling a single new
    Drilling rig operator Seadrill suffered unexpected downtime for its
deepwater rigs in the fourth quarter and administrative costs were also above
historic norms, it said late on Thursday.  

    Porsche SE and several hedge funds seeking damages from the Stuttgart-based
financial holding agreed on Thursday that New York was the wrong place to pursue
compensation, and left the door open to bringing a case in German courts.
    Germany's Bayer CropScience blasted a European Commission proposal as
"draconian" after Brussels said it wants to suspend all use of neonicotinoids
products in crops attractive to bees for two years. 
    The owner of offroad motorbike maker KTM acquired rival brand
Husqvarna from Germany's BMW on Thursday in a consolidation move that helps
shave costs as the industry copes with a slump in Europe. 
    Bertelsmann is considering a reduction in its stake in
Europe's largest broadcasting group, RTL Group, to raise money for an
overhaul of its business to catch up with fast changing markets.
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