August 12, 2014 / 8:25 AM / in 3 years

European shares dip ahead of Germany's ZEW

* FTSEurofirst 300 down 0.2 pct, Euro STOXX 50 down 0.3 pct
    * ZEW index expected to have fallen on Ukraine effect
    * Henkel shares fall after warning on profits

    By Blaise Robinson
    PARIS, Aug 12 (Reuters) - European shares dipped early on
Tuesday, halting the previous day's rebound as tensions over
Ukraine resurfaced, with the impact of the crisis expected to
weigh on a German sentiment indicator.
    A convoy of 280 trucks Russia said was carrying humanitarian
aid for Ukraine set off late from near Moscow on Tuesday amid
Western warnings against using help as a pretext for an
invasion. Ukraine also reported that Russia has massed 45,000
troops on its border. 
    "Russia's convoy is adding fuel to the fire. We don't know
what Moscow's real intentions are, and risks of an escalation of
the conflict are real," said Lionel Jardin, head of
institutional sales at Assya Capital, in Paris.
    "What's worrying is that this crisis has started to hit the
European economy, and the ZEW today will probably reflect that."
    The German investor sentiment index, which is expected to
have fallen, should offer insight into the country's economic
outlook and the potential impact from the tensions in Ukraine.
    The ZEW comes a week after data showed Germany's monthly
industrial orders falling at their steepest rate since September
2011 as euro zone demand weakened and bulk orders were below
average, with the Economy Ministry suggesting this was in part
due to uncertainty over the Ukraine crisis. 
    At 0754 GMT, the FTSEurofirst 300 index of top
European shares was down 0.2 percent at 1,320.94 points, after
rising 1.3 percent on Monday. The euro zone's blue-chip Euro
STOXX 50 index was down 0.3 percent at 3,038.26.
    The impact of tensions between Moscow and the West and
Russia were visible in the corporate sector on Tuesday, with
German consumer goods group Henkel warning that
earnings growth would slow in the second half of the year in
part due to the frictions between Russia and Ukraine.
    The warning sent Henkel shares down 3.2 percent.
    Fighting in Ukraine and sanctions against Russia, a major
energy supplier to Europe, have muddied the forecasts of a
number of multinationals including BP, Adidas 
and Rheinmetall. 
    Shares in Danish jewellery maker and retailer Pandora
 surged 8.5 percent after it posted
better-than-expected second-quarter results, leading it to raise
its 2014 revenue forecast. 
    As Europe's earnings season draws to a close, STOXX Europe
600 companies have posted a 9.7 percent rise in
second-quarter profits on average, but revenues have slipped 1.1
percent, reflecting Europe's frustratingly slow economic
    Europe bourses in 2014:
    Asset performance in 2014:
    Today's European research round-up 

 (Editing by John Stonestreet)
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