May 6, 2013 / 5:20 AM / 5 years ago

European Factors to Watch-Euro zone shares seen pausing at 22-mth high

LONDON, May 6 (Reuters) - Euro zone shares were expected to open flat on
Monday, consolidating close to a 22-month high in what was expected to be a
quiet session due to a market holiday in Britain.    
    At 0617 GMT, futures for the Euro STOXX 50, Germany's DAX 
and France's CAC were between 0.1 percent higher and 0.1 percent lower.
    Trading volume was expected to be thin with the British stock market,
Europe's largest, shut due to a national holiday. 
    Shares in Germany's Linde were indicated to rise at the open after
the world's No. 2 industrial gases producer reported a higher-than-expected
first-quarter operating profit.    
    The euro zone Euro STOXX 50 index hit a closing high not seen
since July 2011 on Friday, at 2,764 points, as better-than-expected U.S. labour
data boosted global growth prospects.
    The index sent a bullish technical signal by closing above its 2013 high at
2,755 points and its Relative Strength Index (RSI), a momentum indicator, also
edged above a resistance level, daily charts showed.
    "The false breakout of a rising trend line... is a positive signal," Nicolas
Suiffet, an analyst at Trading Central, said.
    "Furthermore, the daily RSI has broken above its declining trend line
calling for a further advance." 
    The index has risen 8.7 percent since an April 18 low, helped by a new
government in Italy and a rate cut by the European Central Bank, leading some
traders to consider taking profit on some of the best sectoral performers.
    "I'd take profit on the banks," a pan-European broker in Milan said.
"Everything went their way but now it feels like they don't have the impetus to
rise further." 
    Euro zone banks, which are large holders of the region's debt, have
risen about 14 percent since April 18.   
                                              LAST    PCT CHG   NET CHG
 S&P 500                                  1,614.42     1.05 %     16.83
 MSCI ASIA EX-JP                            556.82     0.91 %      5.01
 EUR/USD                                    1.3117     0.04 %    0.0005
 USD/JPY                                     99.20     0.16 %    0.1600
 10-YR US TSY YLD                            1.740         --      0.00
 10-YR BUND YLD                              1.239         --     -0.01
 SPOT GOLD                               $1,477.24     0.48 %     $7.04
 US CRUDE                                   $96.56     0.99 %      0.95
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    The French state is considering selling part of its holdings in a number of
firms to finance projects such as equipping remote regions with high-speed
Internet, French Prime Minister Jean-Marc Ayrault said on Sunday.
    Ayrault said the state would consider selling shares in companies in which
its stake was relatively high.
    France's biggest holdings include 84.44 percent of EDF, 54.54 percent of
Aeroports de Paris and 36.71 percent of GDF Suez.
    France needs to hurry up and establish the regulatory framework for
renewable marine energy, allowing companies to experiment with wave and tide
power if it wants to catch up with industry leader Britain, a government report
said. For story 
    Germany's finance minister sees no chance of renegotiating a failed
bilateral deal with Switzerland that would have sought to sweep Swiss accounts
clean of German tax dodgers, even after the country's foreign minister renewed
his calls for a second try. 
    The lower regional court in Munich will hold the next hearing in Deutsche
Bank's dispute with the representatives of deceased media mogul Leo Kirch on
June 13, German magazine Der Spiegel reported, without saying where it obtained
the information. 
    Volkswagen's premium brand Audi will not build a vehicle assembly plant in
Brazil until the laws governing what exactly is required to ensure a car is
considered locally built are clarified, the unit's chief executive said on
    The company agreed with union Verdi to found three new subsidiaries for
tasks such as administration and passenger handling in locations other than
Frankfurt and Munich, which might pay less than the parent company, German
magazine Der Spiegel reported, citing internal Lufthansa documents.
    Separately, Lufthansa's LSG unit said it will lower wages and increase
working hours.

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