July 21, 2014 / 5:40 AM / 4 years ago

European Factors to Watch-Shares to cautiously rebound; eyes on Ukraine

EDINBURGH, July 21 (Reuters) - European stocks were seen edging higher on
Monday, resuming a rebound from last week's lows as traders cautiously
anticipated a peaceful resolution to the Ukraine crisis, with gains set to be
limited without further clarity on the situation.
    European shares opened on a weaker footing in the previous session after a
passenger plane was shot down over Ukraine on Thursday, although a feared
deterioration in the situation over the weekend did not materialise.
    The pan-European FTSEurofirst 300 ended flat on Friday, with
volatility falling during the day as the loss of the Malaysian jet with 298
people aboard was also seen as intensifying international pressure to resolve
the worst crisis between Russia and the West since the Cold War.
    The United States is yet to introduce new sanctions against Russia for what
it says is Russia's complicity in the downing of the jet, and verbal criticism
is yet to be followed up with action.
    Wall Street led global markets higher on Friday, with Europe's increased
exposure to Russia prompting underperformance during the crisis as well as
making their political leaders less willing to sanction Russia heavily.
    "So far European Union sanctions have come across as somewhat half-hearted,
but given last week's horrific events the pressure for a much tougher approach
towards Russia will be much harder to resist," Michael Hewson, chief market
analyst at CMC Markets, said in a note.
    "This particular story looks like it has some way to run and investors would
be unwise to become complacent about it."
    At 0623 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were flat to 0.2 percent
    On the earnings front, Philips was a stand out performer in a light
day for corporate reports.
    The Dutch lighting and health care company said it expected core profit to
rise in the second half of the year, benefitting from cost cuts. 
    However, Britain's biggest retailer Tesco is set to be in focus
after its chief executive quit following a profit warning. 
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
                                                LAST  PCT CHG  NET CHG
 S&P 500                                    1,978.22   1.03 %     20.1
 NIKKEI                                     15215.71  -1.01 %  -154.55
 MSCI ASIA EX-JP                              500.79   0.23 %     1.16
 EUR/USD                                      1.3537    0.1 %   0.0013
 USD/JPY                                      101.23  -0.09 %  -0.0900
 10-YR US TSY YLD                              2.482       --     0.00
 10-YR BUND YLD                                1.158       --     0.00
 SPOT GOLD                                 $1,310.68   0.02 %    $0.28
 US CRUDE                                    $102.87  -0.25 %    -0.26
  > GLOBAL MARKETS-Asian stocks firmer, upbeat on US earnings    
  > US STOCKS-Wall St rebounds; indexes up for the week        
  > Nikkei posts biggest drop in 3 weeks, downing of jet hits mood    
  > TREASURIES-Safety trade intact on geopolitical tensions     
  > FOREX-Major currencies calm as geopolitical risk lingers    
  > PRECIOUS-Gold holds above $1,300 as geopolitical risks eyed    
  > METALS-London copper near 3-week low; surplus on horizon     
  > Brent steady above $107 as investors eye Ukraine tension      
    BSKYB : 
    BSkyB could agree a deal in the next two weeks to buy Rupert Murdoch's Sky
Italia and his stake in Sky Deutschland, the Sunday Times reported.
    Trading firms and employees raised concerns about high-speed traders at
Barclays Plc's "dark pool" months before the United States accused the bank of
favoring its high-frequency trading clients, the Wall Street Journal reported,
citing people familiar with the firms. 
    World no. 1 platinum producer Anglo American Platinum said on
Monday it planned to sell its Union mine, Rustenburg operations and another
asset in South Africa, a widely expected move after it was hit by a five-month
    Roche plans to steer clear of the wave of big takeovers sweeping through the
healthcare industry and focus instead on small acquisitions and partnerships,
the Swiss drugmaker's chief executive said in an interview published on
    For more, click on: 
    Julius Baer said on Monday that it will buy the private banking activities
of Bank Leumi in Luxembourg and Switzerland, in a deal which will cost
up to 70 million Swiss francs ($78.01 million).
    For more click on 
    Cement makers Holcim and Lafarge are in "advanced" talks
with European competition regulators over their proposed merger, and have filed
formal notifications in five major markets, Holcim Chief Executive Bernard
Fontana told the Wall Street Journal.
    For more, click on 
    The Dutch lighting and health care company said it expected core profit to
rise in the second half of the year, benefitting from cost cuts. 
    The software company is not interested in taking over smaller rival Software
AG, finance chief Luka Mucic told Euro am Sonntag.
    Related news 
    Spanish banks Caixabank and Banco Santander are the frontrunners to buy
bailed-out lender Catalunya Banc in the government's third attempt to sell it,
sources with knowledge of the process said on Friday. 
    Separately,  a former Santander executive will pay $1.92 million to settle a
U.S. lawsuit accusing him of insider trading ahead of a proposed 2010 takeover
of Potash Corp of Saskatchewan Inc by mining group BHP Billiton Ltd
    The banking foundation that used to be Monte dei Paschi's top shareholder
will seek damages from former members of its board and financial advisers in
relation to the Italian bank's 2008 costly takeover of smaller rival
Antonveneta, it said on Friday.   

 (Reporting by Alistair Smout; Editing by Sunil Nair and Sudip Kar-Gupta)
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