Europe Factors to Watch-Shares set to bounce after strong Chinese data

Fri Feb 8, 2013 7:40am GMT

PARIS, Feb 8 (Reuters) - European stocks are seen rising on Friday, halting
the week's slide as robust trade data from China boosts sentiment and eclipses
recent jitters over the euro zone economic outlook.
    Data showed Chinese exports grew 25 percent in January from a year earlier
versus a forecast of 17 percent in a Reuters poll while imports climbed 28.8
percent, highlighting robust domestic demand. 
    Trade figures from Germany released on Friday morning also lifted the mood.
The data showed Germany's trade surplus hit its second highest level in more
than 60 years in 2012, signalling the underlying strength of Europe's biggest
largest economy. 
    In Brussels, European Union leaders have agreed the broad lines of a deal to
fix total EU spending at 960 billion euros over the next budget's seven-year
period. 
    At 0735 GMT, futures for Euro STOXX 50, for Germany's DAX 
and for France's CAC were up 0.2-0.3 percent.
    The euro zone's blue chip Euro STOXX 50 index has tumbled 4.1
percent so far this week, set to post its biggest weekly loss since late Sept
September, hurt by rekindled worries over a corruption scandal in Spain and
polls showing Italy's former prime minister Silvio Berlusconi regaining ground
before elections this month.
    "This is the pull-back that a lot of people have been waiting for before
further increasing the exposure to stocks. If we get a few stable sessions,
fresh money will be flowing in again into equities, there's just no alternative
anyway," a Paris-based equity and exchange-traded fund trader said. 
    The auto sector will be in the spotlight after French carmaker PSA Peugeot
Citroen slashed the book value of its plants and other assets by 28
percent, in a writedown adding 4.13 billion euros ($5.53 billion) to its 2012
net loss to reflect Europe's worsening market outlook. 
    
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 MARKET SNAPSHOT AT 0729 GMT                            
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,509.39  -0.18 %    -2.73
 NIKKEI                             11,153.16   -1.8 %  -203.91
 MSCI ASIA EX-JP                       551.47    0.1 %     0.57
 EUR/USD                               1.3391  -0.04 %  -0.0005
 USD/JPY                                92.99  -0.67 %  -0.6300
 10-YR US TSY YLD                       1.953       --    -0.01
 10-YR BUND YLD                         1.606       --     0.00
 SPOT GOLD                          $1,670.66      0 %   -$0.03
 US CRUDE                              $96.00   0.18 %     0.17
 
  > GLOBAL MARKETS-Asian shares inch up on solid China trade data 
  > Wall Street ends lower on renewed euro zone fears 
  > Nikkei snaps 12-week winning streak on euro zone worry 
  > Bonds edge up as euro slips, stocks fall 
  > FOREX-Euro near 2-week low after Draghi cautions on its rise 
  > Gold heads for 2nd weekly rise, PGMs off 17-month peak 
  > METALS-LME copper gains after China data, snaps 3-day drop 
  > Brent rises towards $118 on strong China data, Iran worries 
    
    COMPANY NEWS:
    
    PSA PEUGEOT CITROEN 
    PSA Peugeot Citroen slashed the book value of its plants and other
automotive assets by 28 percent, in a writedown adding 4.13 billion euros ($5.53
billion) to its 2012 net loss to reflect Europe's worsening market outlook.
 
    The French state is examining the possibility of taking a stake in
struggling carmaker PSA Peugeot Citroen, French daily Liberation
reported on Friday, citing unnamed sources.

   ENI 
   Milan prosecutors have put Paolo Scaroni, head of Italy's Eni, under
investigation in a probe into alleged bribes paid to win contracts in Algeria
for Saipem, in which Eni is the largest investor, the company said.
 
    
   SAIPEM 
   The Italian oil service group does not expect any more nasty surprises to
undermine its profitability as it seeks to draw a line under a shock profit
warning last week that wiped billions off its value and left investors incensed.
 
    
    HUGO BOSS 
    German fashion house said it was confident of posting stronger growth than
the luxury market in 2013 as it reported a 18 percent rise in sales for the
fourth quarter. 
    
    TELECOM ITALIA 
    The company is in talks with its banks over a 3 billion euros loan deal,
banking sources said on Thursday, which could help protect the company against
possible future turbulence in debt markets. 

     EUTELSAT COMMUNICATIONS 
    The European satellite operator posted revenue growth of 5.2 percent to
633.6 million euros and EBITDA growth of 4.9 percent to 501.9 million euros in
its first-half ended Dec. 31. 
    
    SECURITAS 
    The world's second-biggest security group posted a bigger drop than expected
in fourth-quarter pretax profit on Friday. 
 
    DEUTSCHE TELEKOM 
     An investment adviser to shareholders holding about 7.5 million shares of
MetroPCS Communications Inc said it intends to vote against the
company's proposed merger with T-Mobile USA due to the deal valuation and debt
levels that come with it. 

     FIAT INDUSTRIAL 
     The truck and tractor maker Fiat Industrial has renewed a 2 billion-euro
($2.7 billion), three-year credit revolving credit facility, the company said on
Thursday. 

    VIVENDI 
    Vivendi's Universal Music Group (UMG) has agreed to sell one of EMI's most
prized assets, the Parlophone Label Group, to Warner Music for 487 million
pounds ($764.71 million) in cash, parent Vivendi said on
Thursday. 
    MAUREL ET PROM 
    The oil group posted a 26 percent increase in full year consolidated sales
to 472 million euros, mostly due to higher volumes sold in Gabon. 
    
    SSAB 
    The Swedish speciality steel maker on Friday posted a much worse than
expected quarterly operating loss but said it expected demand to increase in
North America and Asia after a weak end to the year.