January 27, 2014 / 6:35 AM / 4 years ago

European Factors to Watch-Shares set to take breather after sell-off

PARIS, Jan 27 (Reuters) - European stocks were seen broadly flat in early
deals on Monday, with some investors seeing value in the market after a steep
slide last week, but with any gains capped by nagging concerns over China's
growth pace and a spike in volatility in emerging market currencies.
    With the U.S. Federal Reserve expected to stick to its its planned programme
of stimulus reduction this week, investors fear further turbulence in emerging
markets, fuelling a bout of profit taking on European stocks with big exposure
to those regions.
    Fed policymakers are seen agreeing on another $10 billion cut to the central
bank's monthly bond purchases at the Jan. 28-29 meeting. 
    At 0627 GMT, futures for Euro STOXX 50 for Germany's DAX 
and for France's CAC were flat to 0.3 percent higher. Futures for up 0.3
UK's FTSE 100 were down 0.5 percent. 
    On Friday, European stocks suffered their biggest one-day slide in seven
months and erased what was left of their new-year rally, hurt by jitters about
economies and currencies in Latin America.
    Spanish stocks were among the worst hit, with Madrid's IBEX index
dropping 3.6 percent, wiping off about 19 billion euros in market capitalisation
of the country's blue chips.
    Telefonica, BBVA and Banco Santander derive
about half of their revenues from Latin America - the biggest exposure to the
region among European blue chips, according to data from MSCI.  
    "Emerging markets have strongly benefited from the central banks' liquidity
injection, so the tapering won't be a smooth process," a Paris-based equity and
exchange-traded funds trader said.
    Europe indexes in 2014:Biggest exposures to Latin America: 
                                        LAST         PCT CHG    NET CHG
 S&P 500                                1,790.29     -2.09 %    -38.17
 NIKKEI                                 15,005.73    -2.51 %    -385.83
 MSCI ASIA EX-JP                        443.15       -1.41      -6.36
 EUR/USD                                1.3684       0.07 %     0.0009
 USD/JPY                                102.65       0.36 %     0.3700
 10-YR US TSY YLD                       2.735        --         0.00
 10-YR BUND YLD                         1.668        --         0.01
 SPOT GOLD                              $1,267.74    -0.07 %    -$0.90
 US CRUDE                               $96.80       0.17 %     0.16
  > GLOBAL MARKETS-Shares tumble on emerging market high anxiety 
  > Wall St falls as emerging-market concerns rise 
  > Nikkei dives to 2-mth low as yen rises on emerging-market worries 
  > US STOCKS-Wall St falls as emerging-market concerns rise 
  > FOREX -Dollar touches 7-week low vs yen on emerging market concerns 
  > PRECIOUS-Gold rallies to 2-month high on safe-haven bids 
  > METALS-London copper sinks to 7-week low on tapering anxiety 
  > Brent eases towards $107, China slowdown stokes demand worries 
    Spain's largest bank Santander expects profits of some 1.1 billion euros
from its operations in Spain, Cinco Dias reported on Monday, citing recent
comments by Enrique Garcia Candelas, the general director of retail banking.
    The cooperative bank said late on Friday it would launch a 1.5 billion euro
rights issue in the first half after posting a bigger-than-expected loss of 600
million euros in 2013 hit by large loan loss provisions. 
    Deutsche Bank and Commerzbank have capital shortfalls of 19 billion euros
($26.00 billion) and 7.7 billion respectively, WirtschaftsWoche reported, citing
a new study by the Organisation for Economic Cooperation and Development (OECD).
    Swiss drug company Roche said on Friday a European Union committee
recommended its MabThera subcutaneous treatment for patients with non-Hodgkin
    The two telecom operators are close to finalising an agreement to share
their mobile networks and their respective boards are expected to vote on the
plans on Friday, Les Echos said.
    Carlos Tavares could take over as chief executive of the French car maker in
March, two sources close to the situation said. Peugeot, in talks on a capital
injection from the French government and China's Dongfeng, had previously only
said he would take over sometime this year. 
    Spain's second-biggest bank BBVA is closing the sale of a portfolio of
property and consumer loans worth 180 million euros, Spanish daily Expansion
said on Saturday. 
    The world's second-largest retailer Carrefour has signed a binding agreement
with real estate group Klepierre to buy a portfolio of 127 shopping malls in
Europe, with the deal expected to close in the first half of 2014. 
    Egyptian tycoon Naguib Sawiris would be prepared to invest in Telecom Italia
as long as the group's biggest shareholder, Telefonica withdraws, but he is not
in direct talks with either company, he told Bloomberg News.
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