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European Factors to Watch-Shares set for rebound, helped by banks and oil
February 12, 2016 / 6:41 AM / 2 years ago

European Factors to Watch-Shares set for rebound, helped by banks and oil

LONDON, Feb 12 (Reuters) - European stocks were seen rising on Friday, rebounding from the previous session’s steep losses, with encouraging results from Commerzbank and a rally in oil prices expected to support banks and commodity-related stocks, and ease concerns over a slowdown in global growth.

The pan-European FTSEurofirst 300 closed down 3.7 percent on Thursday, and is down 6.8 percent for the week, with a slump in banks and resource-related stocks pushing the index to a 2-1/2 year low.

Commerzbank looked set to bring relief to the embattled banking sector, and was indicated up 10 percent after it returned to profit in the fourth quarter as provisions for bad loans fell. That allowed it to draw a line under a six-year restructuring by announcing to close its ‘bad bank’ comprising non-core assets.

Crude oil prices jumped more than 5 percent on Friday after comments by an OPEC energy minister sparked hopes of a coordinated production cut.

Futures on the Euro STOXX, Germany’s DAX, France’s CAC and Britain’s FTSE were up 0.4-1 percent by 0704 GMT.

Asian markets broadly fell on Friday, with Japan’s Nikkei down over 5 percent, having been closed for a holiday when other markets dropped substantially on Thursday.

Traders said that the rally in oil prices would be key for restoring sentiment in equity markets, as well as calming jitters that have been developing in credit.

“Price action in Europe and the US here will be key and a move higher in oil will certainly put a bid in equities and cause a narrowing of credit spreads,” Chris Weston, market analyst at IG, said in a note.



Commerzbank posted a net profit of 187 million euros ($211.4 million) in the fourth quarter, in line with expectations, as it benefited from lower provisions for bad loans and a better result of its ‘bad bank’ comprising non-core assets.


German financial watchdog Bafin has not launched a special investigation into the drop of Deutsche Bank and Commerzbank shares earlier this week, a person familiar with the matter said on Thursday. Earlier, German newspaper Handelsblatt reported Bafin had launched such a probe.

Standard & Poor’s lowered Deutsche Bank’s tier 1 issue ratings to “B+” from “BB-”.


Deutsche Telekom has narrowed the bidders for its T-Mobile Netherlands division to U.S. private equity firms Warburg Pincus and Apollo, people familiar with the transaction said.


German industrial group Thyssenkrupp TKAG.DE missed market forecasts with a 26 percent first-quarter drop in adjusted operating profit as price and margin pressure in its materials businesses outweighed a solid performance in capital goods.


Renault said its full-year profit increased by almost 50 percent last year on strong sales of new models, but the French carmaker wrote down its stake in Lada-maker AvtoVAZ amid a Russian car market slump.

L‘OREAL The French cosmetics giant reported on Thursday a better than forecast rise in fourth-quarter sales, helped by the weak euro, solid growth in the United States and Japan and resilient demand for its luxury products.


French asset manager Amundi reported a 6 percent rise in net income in 2015, the year of its introduction on the Paris stock exchange, and posted record net inflows despite falling markets in the second half of the year.

SOCIETE GENERALE The French bank said on Thursday its domestic retail network was unlikely to increase net banking income this year.


Singapore’s DBS Group Holdings and Oversea-Chinese Banking Corp as well as Swiss bank Julius Baer have submitted non-binding bids for Barclays’ Asian private wealth business, people familiar with the matter said.


A judge in Brazil’s state of Minas Gerais has frozen 470 million reais ($118 million) of assets owned by Vale SA and 1.8 million reais linked to BHP Billiton Ltd to ensure payment of damages related to a deadly dam rupture, Rio de Janeiro’s O Globo newspaper said on Thursday.


Kuwait will sign a deal next week to buy Eurofighter jets, Kuwait’s state news agency KUNA said on Thursday, citing the defence minister. Kuwait signed a memorandum of understanding in September to buy 28 Eurofighter jets, the consortium that makes the aircraft said, in a deal worth up to 8 billion euros ($9 billion). BAE Systems is one of the partners of the consortium.


Rio Tinto will seek financing for its massive Simandou iron ore project in Guinea, despite writing down its value due to low commodity prices and funding uncertainties.


Vivendi now controls nearly 15 percent of the capital of French video games group Ubisoft against 11.52 percent previously, Ubisoft CEO Yves Guillemot said on Thursday.

Ubisoft also revised downwards its sales and operating profit targets for fiscal year 2015/16.


The world’s biggest maker of cement said Eurocement and Russia’s Sberbank have reduced their stakes to under 3 percent.

Thomas Schmidheiny, who owns about 12 percent of LafargeHolcim’s shares, told a Swiss newspaper he has not sold shares in the biggest maker of building materials and stands by the decision to merger Switzerland’s Holcim and France’s Lafarge in 2015.

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Schindler posted 2015 net profit of 747 million Swiss francs ($766.78 million), down 17 percent from last year as the elevator and escalator maker was hurt by currency exchange rates and by price pressure, including in China.

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------------------------------------------------------------------------------ > GLOBAL MARKETS-Asian shares slip as bank fears add to gloom > Banks drag Wall St lower as growth fears, rate outlook weigh > Nikkei slumps over 5 pct, set for worst week since 2008 > FOREX-Dollar on track for steep weekly losses > PRECIOUS-Gold eyes best week in 4 years after market turmoil > METALS-London copper faces biggest weekly drop in one month > Crude prices jump 5 pct, but oversupply still damps outlook (Reporting by Alistair Smout)

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