European Factors to Watch-Shares seen lower, focus on telecoms

by Reuters
Monday, 4 April 2016 06:58 GMT

(ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets for site in development. See the bottom of the report)

LONDON, April 4 (Reuters) - European shares were likely to open slightly lower on Monday after slipping to a one-month low in the previous session, with weaker metals and crude oil prices seen putting pressure on resource-related stocks.

Telecom stocks are also likely to fall sharply after talks between Orange and Bouygues on a deal to create a dominant French telecoms operator collapsed on Friday, ending an attempt to ease a price war that has ravaged operators' margins.

Futures for the Euro STOXX 50, Germany's DAX , France's CAC and Britain's FTSE fell 0.1 to 0.4 percent.

Commodities stocks will be in focus after copper prices slid for a seventh straight session to its lowest in a month on lingering concerns about demand in top consumer China.

Oil prices also fell as the chances of Middle East producers agreeing to curb overproduction appeared to fade, while stubbornly high U.S. output and worries about Asia's economic outlook also dragged on prices.

On the macroeconomic front, International Monetary Fund Managing Director Christine Lagarde denied on Sunday that IMF staff would push Greece closer to default as a negotiating tactic on a new Greek bailout deal, which she said was "still a good distance away."

The pan-European FTSEurofirst 300 index fell 1.5 percent to a one-month low in the previous session.

However, a Reuters poll predicted on Friday that European shares will rise 8 percent from present levels to the end of 2016, with the European Central Bank's supportive monetary policy and the region's improving economic outlook seen helping riskier assets.



Telecom shares are likely to fall sharply as talks between Orange and Bouygues on a deal to create a dominant French telecoms operator collapsed on Friday, ending an attempt to ease a price war in the country that has ravaged operators' margins.


Carmakers published U.S. sales data for March late on Friday. Deliveries of Volkswagen were down around 10 pct, BMW sales fell 13.3 percent, with sales of Mercedes-Benz and Smart down 1.1 percent.

Volkswagen is recalling 91,000 Passat sedans in the United States to fix insufficient cable insulation that could cause short circuits, it said on Friday.


A huge data leak from Panama-based law firm Mossack Fonseca allegedly reveals how some companies domiciled in tax havens are being used for suspected money laundering, arms and drug deals, and tax evasion, a consortium of more than 100 news organisations around the world reported on Sunday.


The German lender wants to drastically simplify its information technology systems and has tasked, Deutsche Bank executive Kim Hammonds with overhauling the fragmented systems, Boersen-Zeitung said.

Separately, Deutsche Bank has fallen from third to fifth among the world's top investment banks, according to data released by financial industry research house Coalition.


Brazilian iron ore miner Vale SA is finalising a proposal to sell its 26.87 percent stake in a steel slab plant that cost nearly $10 billion to build to Germany's Thyssenkrupp for $1 plus the assumption of some debt, a source close to the deal said.


The French luxury group is expected to announce as soon as Monday that Belgian designer Anthony Vaccarello will be the new creative director of fashion brand Yves Saint Laurent, a source told Reuters on Friday.


The French software maker will acquire full ownership of 3DPLM Software, its joint venture with Geometric Ltd.


The aerospace and defense group informed UK authorities of findings concerning some inaccuracies related to applications for export credit financing for Airbus customers.


The troubled engineering services group will not ask its shareholders for a routine approval of five executives' performance at its annual meeting next month because of ongoing compliance investigations, it said on Friday.


Nordex said it had received all regulatory approvals for its merger with Acciona Windpower, meaning the deal was now final.


Growth in Swiss watch sales may have dipped but the industry "is and remains healthy," Swatch Chief Executive Officer Nick Hayek said in an interview with the French language newspaper Le Temps published on Saturday.


Julius Baer has completed a deal to buy an additional 60.1 percent stake in Italian wealth manager Kairos to give it overall ownership of 80 percent, the Swiss private bank said on Monday.


The Swiss airline caterer remains at loggerheads with its biggest investors, RBR Capital Advisors and Cologny Advisors, which are seeking to depose Chairman Andreas Schmid.


The Swiss drugmaker, whose shares have dropped by a fifth this year, took its campaign to invigorate sluggish sales of its new heart failure medicine Entresto to a U.S. cardiologists meeting on Saturday, telling attendees even clinically stable patients can benefit from the drug.


A Swiss newspaper reported on Saturday that the two Swiss companies' names have emerged in emails linked to Unaoil, a Monaco-based company whose offices have been raided as part of a probe into alleged corruption within the global oil industry.

ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). In a real-time, multimedia format from 0600 London time through the 1630 closing bell, it will include the best of our market reporting, Stocks Buzz service, Eikon graphics, Reuters pictures, eye-catching research and market zeitgeist. Breaking news and dramatic market moves will continue to be alerted to all clients and we will continue to provide a short opening story and comprehensive closing reports.

If you have any thoughts, suggestions or feedback on this, please email

Mike Dolan, Markets Editor EMEA.

(Reporting by Atul Prakash)

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