January 21, 2014 / 6:40 AM / 4 years ago

Europe Factors to Watch-Shares set to rise; Remy Cointreau eyed

PARIS, Jan 21 (Reuters) - European stocks were seen rising on Tuesday,
tracking gains in Asian shares after the Chinese central bank offered emergency
funds to cool money market rates and ease the country's latest cash squeeze.
    European spirits and luxury goods groups will be under pressure after
France's Remy Cointreau said quarterly sales sank 19 percent. Cognac
sales plummeted as a Chinese government crackdown on ostentatious spending
further hit demand. 
    Food companies will also be in the spotlight after Unilever 
 reported a decline in full-year turnover on Tuesday, citing a slowdown
in some emerging markets. 
    "The market has been rising on hopes that a pick-up in global growth would
translate into corporate earnings. Evidently, we're not there yet," a
Paris-based trader said.
    At 0730 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were up 0.4-0.5 percent.
    China shares rebounded from six-month lows on Tuesday after cash rates eased
following a move by the country's central bank to inject funds to soothe the
latest cash crunch. 
    "Persistent fears of a credit crunch and recent data pointing towards a
slowdown have had markets cautious that the world's second largest economy may
be reaching a tipping point," Capital Spreads trader Jonathan Sudaria wrote in a
    "However, the loosening of money markets has given Asian indices a boost and
we are set to see that optimism carrying over into Europe this morning."
    European stocks inched lower in thin trade on Monday, as Deutsche Bank's
 surprise quarterly loss prompted investors to cash in recent gains on
banking stocks.
    But despite the day's dip, the FTSEurofirst 300 index of top 
European shares remained just a few points below a 5-1/2 year high hit recently.
    European stocks have rallied since last June as a recovery in the region's
macro indicators and a more dovish European Central Bank prompted investors to
scoop up European shares. That has led to into massive investment inflows to the
    Europe equity funds absorbed over $4 billion in net investment inflows in
the seven-day period to Jan. 15, according to the latest data from EPFR Global.
It was their fourth-biggest weekly total on record.
    The brisk inflows into Europe equity funds represented nearly half the
collective flows into all equity funds around the world, according to EPFR.
                                        LAST         PCT CHG    NET CHG
 NIKKEI                                 15,795.96    0.99 %     154.28
 MSCI ASIA EX-JP                        459.08       0.50 %     2.3
 EUR/USD                                1.3558       0.06 %     0.0008
 USD/JPY                                104.54       0.36 %     0.3800
 10-YR US TSY YLD                       2.851        --         0.02
 10-YR BUND YLD                         1.757        --         0.02
 SPOT GOLD                              $1,252.49    -0.06 %    -$0.70
 US CRUDE                               $94.14       -0.24 %    -0.23
  > GLOBAL MARKETS-Asia shares rally as China cools money rates 
  > Tokyo's Nikkei share average closes up 0.99 pct 
  > FOREX-Dollar rises vs yen on Fed tapering view; kiwi shines 
  > PRECIOUS-Gold holds steady below 6-week high; Chinese demand slows 
  > METALS-London copper subdued on slow China demand 
  > Brent slips towards $106, Iran deal eases supply disruption fears 
    The group said sales contracted more than feared in the third quarter, as a
Chinese government crackdown on ostentatious spending further hit demand for its
premium cognac. The like-for-like sales decline was 18.9 percent, with cognac
sales sinking 32 percent, having fallen 8.3 percent in the second quarter and
12.9 percent in the first quarter. 
    The consumer goods maker reported a decline in full-year turnover on
Tuesday, as sales were hit by a slowdown in some emerging markets. 
    French power and transport engineering firm Alstom lowered its annual profit
and cash flow targets on Tuesday, blaming a slowdown in orders in thermal power.
    The carmaker confirmed it was pursuing negotiations towards a tie-up with
Dongfeng, with a possible two-stage capital increase of 3 billion euros also
involving the French state. 
    The French utility had takeover approaches for Canada-based Talisman Energy
Inc rebuffed late last year as it seeks acquisitions worth as much as
$10 to $20 billion outside Europe, banking and industrial sources said. 
    Ethiopian Airlines is looking at placing an order for 10-20 narrowbody jets,
its chief executive told Reuters. Such an order would be worth $1-2 billion at
list prices. 
    The French state-controlled nuclear group and Spanish wind turbine maker
Gamesa have agreed a preliminary deal to create one of the biggest
players in offshore wind energy. 
    The company whose services range from catering to facilities management and
vouchers announced seven appointments to enlarge its executive committee to 14
members in order to better reflect the group's geographic and services spread.
    Activist investor Elliott Management Corp has raised its stake in German
drug distributor Celesio and now controls shares equivalent to 24.08 percent of
voting rights, regulatory filings to the Frankfurt Stock Exchange on Monday
    The business software maker said that additional investments in its cloud
business would delay reaching its profit target. Its operating margin goal of 35
percent would now be reached in 2017 instead of 2015. 
    The European Commission is expected to launch legal action against Germany
over Daimler's refusal to remove the banned air-conditioning coolant R134a from
new cars, EU sources said on Monday. 
    Testing and inspection company SGS posted a rise in full-year net profit on
Tuesday and said it expected to grow its top line each year for the next three
    The Swiss drugmaker said on Tuesday its experimental schizophrenia drug
failed to significantly reduce the "negative symptoms" of the disorder in
two-late stage studies.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below