July 17, 2014 / 5:25 AM / 4 years ago

European Factors to Watch-Shares to pause after biggest gain in 3 months

(Adds quote, detail, company news)
    EDINBURGH, July 17 (Reuters) - European stocks were seen falling on Thursday
after posting their best gains in three months in the previous session, with a
nascent earnings season in focus after mixed results in the United States.
    The pan-European FTSEurofirst 300 index closed up 1.3 percent at
1,376.32 on Wednesday, recovering from losses in the previous session as miners
benefited from better-than-expected data from China and Portuguese lender Banco
Espirito Santo saw bottom-fishing. 
    The rise was the biggest on the FTSEurofirst 300 since April.
    "Yesterday was a big day for European markets and a pullback is not much of
a surprise. However, momentum seems positive at the moment," Stan Shamu, market
strategist at IG, said in a note.
    Asian and U.S. stocks managed gains overnight, although not to the same
extent as in Europe, as disappointing results for the likes of Bank of America
 and internet firm Yahoo crimped gains led by those who posted
better earnings such as chipmaker Intel Corp. 
    Company reports were set to be the focus in Europe too, with French
supermarket Carrefour, UK-listed miner Anglo American and
Swiss pharmaceutical Novartis all giving corporate updates.
    Carrefour, Europe's largest retailer, said on Thursday that like-for-like
sales growth accelerated in the second quarter, reflecting improving trends in
austerity-hit Southern Europe and notably Italy. 
    At 0625 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were 0.2-0.4 percent
    Contributing to falls were new sanctions on Russia by the West, which some
analysts said could raise again the prospect of tit-for-tat measures that could
harm the European economy and stocks with exposure to Russia.
    Russian stocks fell over two percent at the open on Thursday, led lower by
sanction-hit oil producer Rosneft. 
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
                                              LAST   PCT CHG  NET CHG
 S&P 500                                  1,981.57    0.42 %     8.29
 NIKKEI                                   15370.26   -0.06 %    -9.04
 MSCI ASIA EX-JP                            499.53    -0.1 %    -0.48
 EUR/USD                                    1.3525       0 %   0.0000
 USD/JPY                                    101.51   -0.16 %  -0.1600
 10-YR US TSY YLD                            2.520        --    -0.02
 10-YR BUND YLD                              1.186        --    -0.01
 SPOT GOLD                               $1,305.69    0.53 %    $6.82
 US CRUDE                                  $101.45    0.25 %     0.25
  > GLOBAL MARKETS-Asia stocks follow Wall Street up            
  > US STOCKS-Wall St gains on M&A, results; Dow ends at record     
  > Nikkei rises to 1-1/2-week high on U.S. gains, Intel forecast    
  > TREASURIES-U.S. 10-year yields edge lower in range-bound trade    
  > FOREX-Euro hits the skids, buried near 2-year low vs sterling    
  > PRECIOUS-Gold rises on bargain-hunting; rate fears linger    
  > METALS-Shanghai copper hits 2-week low on China credit concern    
  > Brent holds above $107 on US crude draw, China data        
    Europe's largest retailer said on Thursday like-for-like sales growth
accelerated in the second quarter, reflecting improving trends in austerity-hit
Southern Europe and notably Italy. 
    Swiss drugmaker Novartis posted a 2 percent rise in quarterly sales on
Thursday and confirmed its full-year guidance, expecting revenue from new
products to offset generic competition to its blood pressure pill Diovan.
    For more, click on 
    The planemaker sought to allay any concerns over the impact of door problems
on its A380 superjumbo after a German broadcaster reported its breakeven target
could be delayed by several years.
    For news from Farnborough Airshow 
    The carmaker expects to sell over 100,000 cars and vans in Britain in 2014,
around 40 percent more than last year, its UK managing director, Ken Ramirez,
    The UK unit of the French defence electronics group said it expects to start
receiving overseas orders worth hundreds of millions of pounds for its
Watchkeeper drone from next year, buoying Britain's plan to grow its defence
Three investment funds run by Santander and four run by Bankinter
 have valued their shares in troubled technology company Gowex at zero,
El Pais reported.             
Telefonica will sell 750 million euros in bonds that convert to Telecom Italia
shares, it said on Wednesday, effectively loosening its grip as largest
    The world's largest fragrance and flavour maker reported a rise in
first-half net income to 305 million Swiss francs.
    For more, click on 
    The carmaker is betting that cooperation with Renault and the
launch of models to tap growing demand for city cars may pave the way for its
diminutive Smart brand to become profitable. 
    Related news 
    SAP indicated up 1.1 percent
    German business software maker SAP raised its 2014 outlook for its
web-based software services as its customers switch to cloud-based products more
quickly than expected to save money. 
    Related news 
    Siemens indicated down 0.2 percent
    The engineering group said late on Wednesday that it was selling its
microbiology business to Beckman Coulter, a subsidiary of Danaher
Corp. It did not disclose financial details.
    Related news 
    The world's largest testing and inspection company SGS lowered its growth
outlook on Thursday as it posted a weaker-than-expected 6.3 percent rise in
first-half net profit.
    For more, click on 
    UBS cemented its lead over U.S. brokerage Bank of America Corp as
the world's largest private bank and is within striking distance of managing $2
trillion on behalf of the wealthy, according to a study on Thursday.
    For more, click on: 
    The head of Swiss chocolate maker Lindt & Spruengli said the firm's top
priority was gaining market share globally, which meant absorbing some of the
cocoa bean price increase seen over the past year, rather than passing it on to
    For more, click on: 
    Roche's experimental drug crenezumab failed to delay a decline in thinking
and memory skills in people with Alzheimer's disease, a result likely to bolster
a growing belief that drugs need to be given in earlier stages of the disease to
show a benefit.
    For more, click on: 
    Telefonica will sell 750 million euros ($1 billion) in bonds that
convert to Telecom Italia shares, it said, effectively loosening its grip as
largest shareholder of the Italian telecoms group. 
    Telecom Italia Chairman Giuseppe Recchi said on Wednesday that a move by its
biggest shareholder Telefonica to cut its stake in the Italian phone company
will not affect its own strategy. 
    UniCredit has received at least three binding offers for debt collection
unit UCCMB, which Italy's biggest bank by assets has put up for sale as it
tackles its large stock of soured loans. 
    Other offers could include one presented by Lone Star and another by a
consortium made up of Goldman Sachs, Deutsche Bank and TPG, sources and media
reports have added. 
    Luxury carmaker Maserati, part of Fiat Chrysler, will not sell more than
75,000 vehicles globally a year to retain the exclusivity of the Italian brand,
an executive at Maserati said on Thursday. 

 (Reporting by Alistair Smout; Editing by Tricia Wright)
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