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European Factors-Shares to tick lower, seek new catalyst
March 1, 2012 / 6:31 AM / 6 years ago

European Factors-Shares to tick lower, seek new catalyst

 (Adds futures, company news; updates snapshot table)	
 LONDON, March 1 (Reuters) - European shares were set to open a shade
lower on Thursday, with investors waiting for the next catalyst to take stocks
higher after expectations of more monetary easing from the U.S. Federal Reserve
and further cheap funding from the European Central Bank faded.	
 Futures for the Euro STOXX 50, Germany's DAX and France's
CAC were 0.01-0.24 percent lower. Financial spreadbetters earlier
predicted Britain's FTSE 100 to open about 0.1 percent lower.	
 Fed chairman Ben Bernanke on Wednesday offered a tempered view of the U.S.
economy, pouring cold water on the notion recent upbeat signs heralded a
stronger recovery. He provided no hints for further Fed bond purchases.
 	
 In Europe, banks borrowed 530 billion euros ($709 billion) at the ECB's
second offering of cheap three-year funds on Wednesday. The market expects that
the move will be its last major crisis-fighting act. 	
 Analysts said that investors will keep a close eye on macroeconomic
indicators for hints about the pace of global economic recovery and an absence
of strong numbers in the coming days could prompt them to take profits after a
strong run.	
 The FTSEurofirst 300 index of top European shares hit a seven-month
high last week before giving up some gains. The index ended 0.1 percent lower on
Wednesday, but is still up more than 7 percent so far this year.	
 The euro zone's blue-chip Euro STOXX 50 index finished 0.3
percent lower at 2,512.11 points.	
 "The fall off in upside momentum has taken the index back to test its
short-term uptrend at around 2,500, although traders would probably need to see
a break through the low end of the recent range, at around 2,480, to convince
them that the rally is breaking down," Bill McNamara, technical analyst at
Charles Stanley, said.	
 The market might get some support from data showing China's factories grew
more than expected in February as new export orders for big firms bounced back.
 	
 Investors will scrutinise the first-time claims data at 1330 GMT for U.S.
jobless benefits for the week ended Feb. 25. Economists forecast a total of
351,000 new filings, unchanged from the previous week. Focus will also be on
January personal income and consumption data at 1330 GMT, and the Institute for
Supply Management's February manufacturing index at 1500 GMT.	
 	
  MARKET SNAPSHOT AT 0729 GMT                              
                                         LAST     PCT CHG    NET CHG
  S&P 500                            1,365.68     -0.47 %       -6.5
  NIKKEI                             9,707.37     -0.16 %     -15.87
  MSCI ASIA EX-JP   <.MIASJ0000PUS                -1.03 %      -5.51
                    >                                      
  EUR/USD                              1.3315     -0.08 %    -0.0010
  USD/JPY                               81.13     -0.01 %    -0.0100
  10-YR US TSY YLD                      1.991          --       0.02
  10-YR BUND YLD                        1.825          --      -0.01
  SPOT GOLD                         $1,715.09      1.17 %     $19.85
  US CRUDE                            $106.67     -0.37 %      -0.40
 	
 * GLOBAL MARKETS-Markets dampened by Bernanke, data awaited  
 * Wall St snaps four-day advance after Bernanke remarks      
 * Tokyo's Nikkei share average closes down 0.16 pct          
 * FOREX-Dollar eases off 3-month low on Fed no easing hint   
 * TREASURIES-U.S. bonds creep slightly lower                 
 * Brent steady above $122 on supply concerns, China, U.S.    
 * PRECIOUS-Gold edges up 1 pct after plunge on Bernanke      
 * METALS-Copper tentative as China data may lessen easing    	
	
 COMPANY NEWS	
 HSBC  	
 HSBC Holdings is nearing a deal to sell its general insurance business for
about $1 billion, sources familiar with the matter told Reuters, with French
insurer AXA SA and Australia's QBE Insurance Group Ltd 
expected to split the business, a separate report said.  	
  	
 AHOLD 	
 Dutch grocer Ahold reported an 11.2 percent rise in quarterly operating
profit, below forecasts, and said sales growth in the first three months of 2012
would reflect the difficult economic environment. 	
  	
 BAYER  	
 The U.S. Food and Drug Administration approved a lower dose formulation of
tts angeliq product.  	
	
 SIEMENS   	
 Nokia Siemens Networks Chief Executive Rajeev Suri said a stock
market flotation of the joint venture of Siemens and Nokia is
possible after the unit has been restructured. Related news   	
	
 RIO TINTO  	
 Rio Tinto, the world's third-largest miner, said it sees coking coal and
copper markets remaining tight, while margins were being squeezed in aluminium,
the firm's chief economist, Vivek Tulpule said in slides prepared for a
presentation in Sydney.  	
 	
 THYSSENKRUPP   	
 German industrial conglomerate ThyssenKrupp plans to make the company more
profitable and cut debt by giving regional units more power and tying them more
closely to the headquarters, German paper Handelsblatt reported.  	
Finnish group Outokumpu's  shareholders were set to approve a 2.7
billion euro ($3.6 billion) buy of ThyssenKrupp's stainless steel business on
Thursday, a deal aimed at boosting profitability and fending off Asian rivals.
 	
   	
 VIVENDI  	
 Europe's largest telecoms and entertainment group slashed its dividend as it
wrestles with tougher competition in the French mobile market that is set to eat
into margins at its SFR telecom business.  	
 Chief Executive Jean-Bernard Levy sees pressure on earnings this year and
next as the company battles with tougher competition in its domestic mobile
market, with profit growth not resuming until 2014.  	
  	
 VEOLIA  	
 The heavily indebted restructuring French utility swung to a net loss last
year after writing down the holding it is seeking to sell in its public
transport division and as the European debt crisis hit.  	
  	
 ADECCO  	
 Adecco warned of slowing jobs growth in parts of Europe after its
fourth-quarter net profit fell 5.7 percent to 133 million euros, slightly
beating the 123 million euros average forecast in a Reuters poll. For more, see:
  	
  	
 LINDT & SPRUENGLI   	
 Swiss chocolatier Lindt & Spruengli  said the spectre of
rising joblessness was dampening consumer sentiment and Europe's debt crisis
made the coming year hard to assess, after 2001 net profit rose 1.9 percent to
246.5 million Swiss francs, just ahead of the average analyst forecast for 244
million Swiss francs in a Reuters poll. For more, see:  	
 	
 ESSILOR  	
 The world's largest maker of corrective eye lenses predicted revenue growth
and sustained high operating margins in 2012 after reporting a 9.4 percent rise
in 2011 profits.  	
  	
 PSA  	
 General Motors and PSA Peugeot Citroen will seek to squeeze a joint
$2 billion annually from a global platforms-to-purchasing alliance, but the
savings will not be fully realized for five years, the automakers said.
  	
 	
 EADS   	
 Hong Kong Airlines Ltd, backed by China's fourth-largest carrier Hainan
Airlines Co Ltd, may cancel its order for 10 Airbus A380 aircraft
amid growing tensions between China and the European Union over the EU's
emissions trading scheme, the South China Morning Post reported on Thursday.
 	
	
 (Reporting by Atul Prakash)	
 

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