June 5, 2012 / 5:56 AM / 5 years ago

European Factors to Watch-Shares to gain, focus on G7 emergency talks

 LONDON, June 5 (Reuters) - European shares were likely to gain on Tuesday on
expectations that emergency talks between the Group of Seven finance chiefs
could offer some support and put pressure on European policy makers to take
decisive actions to resolve the debt crisis.  	
 Investors are hoping that the economic turmoil in Europe and disappointing
U.S. data, including non-farm payrolls and manufactured goods orders, could
prompt the European Central Bank (ECB) and the Federal Reserve to announce some
stimulus measures to help the economy.	
 International Monetary Fund Managing Director Christine Lagarde said in a
newspaper interview that the ECB has room to cut interest rates, while denying
the fund had opened aid talks with Spain. 	
 Futures for Euro STOXX 50, Germany's DAX and France's CAC
 were up 0.7-0.8 percent. Trade is likely to be choppy in relatively low
volumes as the UK market is closed for the Diamond Jubilee holiday for a second
day. 	
 However, analysts cautioned against expecting much from the G7 telephone
conference.	
 "Merely a 'phone hook-up', such meetings have nearly always over-promised
and under-delivered, and at this stage there is no reason to believe today's
get-together will be any different. That said, markets will be all ears for any
hint of a coordinated response/solution," Cameron Peacock, analyst at IG
Markets, said in a market note. 	
 A G7 source familiar with plans for the call said the group would urge more
progress at an EU summit on June 28-29, adding there was only a very small
chance the G7 would go so far as to pledge coordinated action to curb excessive
volatility in the markets. 	
 With Greece, Ireland and Portugal under bailout programmes, markets are
concerned that Spain, mired in a banking crisis, could follow suit, and that a
June 17 election could pave the way for Greece to leave the euro zone.
 	
 The euro zone's blue-chip Euro STOXX 50 index closed 0.5 percent
higher on Monday in muted volumes, while the S&P 500 ended flat after recent
sharp losses. On Tuesday, Japan's Nikkei average rose 1 percent.	
 	
  MARKET SNAPSHOT AT 0634 GMT                                  
                                             LAST     PCT CHG    NET CHG
  S&P 500                                1,278.18      0.01 %       0.14
  NIKKEI                                 8,382.00      1.04 %      86.37
  MSCI ASIA EX-JP                                      1.06 %       4.79
  EUR/USD                                  1.2505      0.09 %     0.0011
  USD/JPY                                   78.42      0.11 %     0.0900
  10-YR US TSY YLD                          1.554          --       0.03
  10-YR BUND YLD                            1.219          --       0.00
  SPOT GOLD                             $1,615.86     -0.18 %     -$2.89
  US CRUDE                                 $84.63      0.77 %       0.65
   	
 * Euro extends rebound as bears trim bets ahead of G7 call   	
 * Markets rebound, hoping for action on euro zone crisis     	
 * Nikkei set to end 4-day losing run on G7 emergency talks   	
 * S&P 500 ends flat but Europe, U.S. data still drag         	
 * Brent crude rebounds above $99 on dollar, G7 talks         	
 * Gold ticks up ahead of G7 emergency talks                  	
 * Shanghai copper up on hopes of G7 action for euro zone     	
 	
 COMPANY NEWS
 	
 LAGARDERE 	
 French media group Lagardere increased its takeover offer for online
shopping guide LeGuide.com to 28 euros from 24 euros a share,
representing a 41 percent premium to its closing share price on May 4.
  	
      	
 EDF, EDISON  	
 Italy's second-biggest utility Edison has no need of a capital increase
since its French owner EDF can provide it with any funding it needs, Edison
chairman Henri Proglio said.  	
  	
 LVMH  	
 Global sales of luxury goods should rise 7 percent a year through 2014,
buoyed by a still-growing Chinese market and barring any major economic crises,
Boston Consulting Group forecast on Tuesday.  	
  	
  WENDEL   	
  Wendel's chief executive rejected a series of accusations against himself,
the French investment group's chairman and a former CEO, saying he had filed a
countersuit for false claims, as he sought to reassure investors at its annual
meeting.  	
  	
 CARREFOUR  	
 Europe's largest retailer owned 96.61 percent of the capital and at least
96.45 percent of the voting rights of franchisee Guyenne et Gascogne 
upon completion of its takeover bid, stock market watchdog AMF said on Monday.  	
 	
 VOLVO  	
 North American net order intake of heavy-duty trucks or Class 8 trucks will
approach 18,000 units in May - still a soft number but higher than in April,
preliminary data from ACT Research showed. The final numbers will be released in
mid-June.	
	
 (Reporting by Atul Prakash; Editing by John Stonestreet)	
 

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