May 6, 2014 / 5:45 AM / 4 years ago

Europe Factors to Watch-Shares set to rise after U.S. data; BMW eyed

PARIS, May 6 (Reuters) - European stocks were set to rise on Tuesday,
reversing the previous session's dip and tracking gains on Wall Street following
robust U.S. macro data.
    Investors were also combing through a flurry of quarterly results from
companies including BMW AG and Barclays.
    The German luxury car maker reiterated its ambitious 2014 goals as first
quarter operating profit rose 2.6 percent, in-line with forecasts, while the UK
lender said its underlying profits fell 5 percent after its investment bank
struggled due to a slump in fixed income revenues.
    So far, 43 percent of STOXX Europe 600 companies have reported results in
the current earnings season, of which 55 have met or beaten analyst forecasts,
according to Thomson Reuters StarMine data.
    "Earnings aren't too bad so far, no major incident, although not exactly
inspiring. The market still needs a big positive catalyst to further rally, and
this impulse is not coming from the micro side, at least for now," a Paris-based
trader said. 
    Swiss lender Credit Suisse will be in focus after a source said
the bank is in talks with the U.S. Justice Department to pay as much as $1.6
billion to resolve an investigation into the bank's role in helping Americans
evade U.S. taxes.
    At 0627 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were up 0.2-0.4 percent.
    Data showed on Monday that the Institute for Supply Management's services
sector index hit the fastest pace in eight months in April, to 55.2 from 53.1 in
March, topping expectations. It was the highest level since August's reading of
57.9, which had been a seven-year high. 
    Europe bourses in 2014: (
    Asset performance in 2014: (
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,884.66   0.19 %     3.52
 MSCI ASIA EX-JP                       475.51   0.21 %     0.99
 EUR/USD                               1.3878   0.03 %   0.0004
 USD/JPY                               102.03   -0.1 %  -0.1000
 10-YR US TSY YLD                       2.606       --    -0.01
 10-YR BUND YLD                         1.460       --     0.00
 SPOT GOLD                          $1,310.40   0.07 %    $0.90
 US CRUDE                              $99.47  -0.01 %    -0.01
  > GLOBAL MARKETS-China leads as Asia shares ride Wall St gains 
  > US STOCKS-Wall St ends up as ISM data upbeat; Apple above $600 
  > FOREX-Dollar subdued in thin trade, aussie eyes RBA 
  > Gold near 3-week high as Ukraine fighting boosts safe-haven bids 
  > METALS-Copper eases, nickel up 1 percent on return from holiday 
  > Brent steady below $108; US stocks, Libya supply may weigh 
    BMW AG 
    The German luxury car maker reiterated its ambitious 2014 goals as first
quarter operating profit rose 2.6 percent, in-line with forecasts, helped by a
12.1 percent rise in sales of BMW cars. 
    Credit Suisse is in talks with the U.S. Justice Department to pay as much as
$1.6 billion to resolve an investigation into the bank's role in helping
Americans evade U.S. taxes, a person familiar with the matter said on Monday.
    The German sportswear company reported worse-than-expected first-quarter
results on Tuesday due to a big drop in sales at its TaylorMade golf business
but said it expected a strong second quarter to signal a return to growth.
    The German fragrance and flavours maker said quarterly core earnings rose 9
percent, buoyed by high capacity utilisation and strong growth in emerging
markets, particularly in Latin America. 
    Germany's largest airline reported a narrower first quarter loss, although
still larger than expected, as its Score restructuring programme continued to
take effect and fuel prices eased. 
    The German industrial gases maker reported an unexpected decline in
quarterly core profit, hit by currency fluctuations. 
    The German publisher reported a 14 percent rise in its core profit, fuelled
by its classified advertising units. 
    Swiss bank UBS said it will pay a special dividend to investors who help it
transfer into a holding company, a bid to win rebates on capital rules demanded
by regulators following the financial crisis. 
    The Belgian chemical company earned a far greater profit than expected in
the first quarter as demand steadily improved and savings measures drove margins
sharply higher. 
    The world's largest cement maker confirmed its full-year forecasts as it
posted a drop in quarterly revenue after foreign exchange headwinds offset a
rise in cement volumes and prices. 
    The French government rejected General Electric's current bid for
Alstom's energy assets, but opened the door for a deal that would also combine
the two companies' rail businesses. 
    The group plans to invest as much as 4-5 billion euros in six new Alfa Romeo
models, the Financial Times reported, citing sources with knowledge of the
group's five-year strategic plan. 
    The reinsurer is sticking to its goal of earning net profit of around 850
million euros this year in face of reinsurers' weakening pricing power and stiff
market competition, CFO Roland Vogel told Boersen Zeitung newspaper in an
interview published on Tuesday. 
    The Spanish oil major will not continue on the board of Argentina's YPF
having not applied for the renewal of its two board seats at an assembly last
week, a document sent by YPF on Monday showed.
    Separately, without citing its sources, El Economista reported that Repsol
is looking at acquiring assets in Norway with the largest possibility being
assets owned by the Canadian group Talisman Energy.
    Latin American's largest carrier, LATAM Airlines Group, said it
plans to invest $12.2 billion through 2020 on 166 new planes. LATAM will add
Boeing BA.N 787s, and Airbus A320s and A350s, among others, to its fleet. 

 (Reporting by Blaise Robinson; Editing by Francesco Canepa)
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