European Factors to Watch-Shares to set new one-month low
LONDON, Feb 5 (Reuters) - European shares were set to extend losses and hit a new one-month low on Tuesday, with growing political uncertainty in Spain and Italy and softer U.S. data preventing investors to bet on the resumption of a recent rally. Futures for Euro STOXX 50, Germany's DAX and France's CAC were 0.1 to 0.2 percent lower. Financial spreadbetters earlier predicted Britain's FTSE 100 to rise as much as 0.1 percent. The indexes fell 1.6 to 3 percent in the previous session, while Spanish and Italian bond yields rose on political uncertainties in the two highly-indebted countries and lower-than-expected U.S. factory orders data. Spain's prime minister faced calls to resign over a corruption scandal, while polls showed Italy's former prime minister Silvio Berlusconi regained ground before elections this month, raising concerns about the euro zone stability and growth. "Political uncertainty in relation to Europe has crept back into investors' thinking. Elections in Italy could leave the country's government ineffective, a situation no one wants to see," Keith Bowman, equity analyst at Hargreaves Lansdown, said. "For now, some selective profit taking appears to be the order of the day, as investors look to assess whether this is just a wobble or the familiar pattern of recent years." Spain's IBEX fell 3.8 percent on Monday, while Italy's FTSE MIB was down 4.5 percent. The FTSEurofirst 300 of top European shares ended 1.5 percent lower at 1,150.91 points, its lowest close since Dec. 31. The index had climbed to a two-year peak last month. Britain's FTSE 100 index fell 1.6 percent to 6,246.84 points on Monday, its biggest one-day fall in three months after a recent 4-1/2-year highs. "Downside for FTSE 100 is still possible to 6,150, however, this is where major support could kick in and help out as a platform for a renewal of the uptrend," said Mike van Dulken, head of research at Accendo Markets. "Global macro outlook is still satisfactory and such correction are just a healthy rite of passage." On the microeconomic front, focus will be on ICSC/Goldman Sachs chain store sales data for the week ended Feb. 2 at 1245 GMT. In the previous week, sales fell 1.0 percent. Redbook will release its Retail Sales Index of department and chain store sales for January at 1355 GMT, while the Institute for Supply Management releases its January non-manufacturing index at 1500 GMT. ------------------------------------------------------------------------------- MARKET SNAPSHOT AT 0741 GMT LAST PCT CHG NET CHG S&P 500 1,495.71 -1.15 % -17.46 NIKKEI 11,046.92 -1.9 % -213.43 MSCI ASIA EX-JP 552.20 -1.15 % -6.43 EUR/USD 1.3473 -0.3 % -0.0040 USD/JPY 92.21 -0.16 % -0.1500 10-YR US TSY YLD 1.962 -- 0.01 10-YR BUND YLD 1.608 -- -0.01 SPOT GOLD $1,674.30 0.02 % $0.30 US CRUDE $96.00 -0.18 % -0.17 * Asian shares drop on euro zone worry, soft US data * Nikkei drops as euro zone worries prompt profit taking * S&P 500 posts worst day since Nov * Euro rally loses steam as political uncertainty grows * Brent slips toward $115 on euro zone woes, firm dollar * Platinum, palladium off multi-month highs * Copper slips from 4-mth high as U.S. data drags * Bonds up as stock losses, euro zone concerns revive bid COMPANY NEWS BP Fourth quarter profits from shrinking British oil company BP Plc beat analysts expectations, thanks in part to a record performance from its refining division as a trial in the U.S. over its 2010 U.S. Gulf oil spill looms later in February. UBS UBS said it will buy back 5 billion Swiss francs ($5.50 billion) in senior debt in coming weeks, after a huge scaleback at its investment bank dramatically reduced liquidity and funding needs. BG GROUP British oil and gas company BG Group posted a 29 percent drop in quarterly earnings, hurt by a one-off tax credit, and said that it will miss its target of producing more than 1 million barrels of oil per day by 2015. ARM British chip designer ARM reported a better-than-expected 16 percent rise in pretax profit in the fourth quarter as it rode the wave of soaring sales of smartphones and tablets, nearly all of which contain its technology. GIVAUDAN Fragrance and flavour maker Givaudan hiked its dividend and confirmed its mid-term targets after strong demand for its ingredients for toothpastes, deodorants and washing powder pushed full-year net profit ahead of forecasts. KPN Dutch telecoms group KPN plans to cut its debt with a 4-billion-euro ($5.4 billion) cash call to shareholders, it said on Tuesday, after posting a fourth-quarter net loss. ANGLO AMERICAN The miner will report an underlying loss in respect of Anglo American Platinum of $225 million in its annual results due out next week, according to the Telegraph. ROYAL DUTCH SHELL Anglo-Dutch oil major's Indian unit will challenge a claim by the local tax authorities that a share sale to its overseas parent in 2009 was undervalued by $2.7 billion, the latest tax conflict involving a foreign company in India. MONTE DEI PASCHI DI SIENA Italian prosecutors called in the former chairman of Monte dei Paschi di Siena on Monday as they pursued their corruption investigation into an opaque series of loss-making derivatives trades at the bank. SANOFI French drugmaker Sanofi said on Tuesday that its Zaltrap drug had been approved for marketing in the European Union to treat metastatic colorectal cancer. GDF SUEZ Belgian utility group Electrabel, a unit of France's GDF Suez, will carry out further tests on two nuclear reactors that were halted by the regulator in 2012 over safety concerns, and present the results by the end of March, the group said on Monday. GAGFAH The German real estate group, controlled by U.S. investor Fortress, said it is to refinance a 1 billion euro loan of its Woba unit, leading it to scrap the sale of the division.
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DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.