LONDON, Sept 1 (Reuters) – European shares are expected to open higher on
Wednesday, mirroring gains in Asia, with a manufacturing rebound in China and
better-than-expected U.S. consumer confidence data seen supporting the market.
Futures for the STOXX Europe 50 STXEc1, for Germany’s DAX FDXc1 and for
France’s CAC FCEc1 were up 0.6 to 0.9 percent. Financial spreadbetters
expected Britain’s FTSE 100 .FTSE to open as much as 0.5 percent higher.
China’s official purchasing managers’ index rose to 51.7 in August from a
17-month low of 51.2 in July, while U.S. consumer confidence increased more than
expected in August and home prices ticked up in June. [ID:nBJB003928]
[ID:nN31237504].
Data showing Australia’s economy grew a stronger-than-expected 1.2 percent
in the second quarter could provide some comfort to investors, who are worried
about the sustainability of the global economic recovery. [ID:nBJB003928]
[ID:nSYU010570]
German retail sales fell by 0.3 percent in July, marking a second
consecutive month-on-month dip. [ID:nLDE67U245]
Japan’s Nikkei .N225 rose 1.2 percent after hitting a 16-month low on
Wednesday, drawing support from a halt in the rapid advance in the yen.
“After what could be considered a washout August, September is starting with
a flourish,” said Ben Potter, research analyst at IG Markets.
“The long weekend on Wall Street that’s coming up could well serve to leave
many traders reluctant to get too committed in the first few days of September
but any Northern hemisphere summer lull is soon set to be behind us.”
Commodity stocks will be in focus as crude oil CLc1 and base metal prices
jumped on China’s manufacturing data.
Investors will watch UK manufacturing PMI data for August, due at 0828 GMT
for more clues on the state of the British economy. Key U.S. economic numbers
include ADP National Employment statistics, due at 1215 GMT, ahead of non-farm
payrolls data on Friday.
U.S. construction spending and ISM manufacturing PMI will also be in focus.
The figures will be released at 1400 GMT.
On Tuesday, the pan-European FTSEurofirst 300 .FTEU3 index closed up 0.1
percent at 1,026.34 points, down around 1.7 percent for the month.
———————-MARKET SNAPSHOT AT 0623 GMT———————-
LAST PCT CHG NET CHG
S&P 500 .SPX 1,049.33 0.04 % 0.41
NIKKEI .N225 8,927.02 1.17 % 102.96
MSCI ASIA EX-JP .MIASJ0000PUS 484.24 0.97 % 4.65
EUR/USD EUR= 1.272 0.28 % 0.0035
USD/JPY JPY= 84.40 0.29 % 0.2400
10-YR US TSY YLD US10YT=RR 2.507 — 0.04
10-YR BUND YLD EU10YT=RR 2.136 — 0.03
SPOT GOLD XAU= $1,249.85 0.07 % $0.86
US CRUDE CLc1 $72.53 0.85 % 0.61
———————————————————————–
* US STOCKS-Wall St ends dismal month on flat note [ID:nN31261350]
* Nikkei climbs above 16-mth low, China PMI a boost [ID:nTOE68004Y]
* Oil tops $72 as China manufacturing accelerates [ID:nSGE68004F]
* METALS-Copper hits 4-month peak on China manufacturing data[ID:nSGE68002M]
* PRECIOUS-Gold eases from 2-month peak; econ worries support[ID:nTOE68002U]
* Yen falls broadly after Australia GDP, China PMI [ID:nTOE68004J]
* TREASURIES-US bonds gain as Fed underscores economy risks [ID:nLDE680019]
* GLOBAL MARKETS-Asia stocks up on China; yen near 15 yr high[ID:nSGE680044]
COMPANY NEWS
SANOFI-AVENTIS (SASY.PA)
Genzyme Corp (GENZ.O) Chief Executive Henri Termeer said he is willing to
sell the company he built up over 25 years, but not for $69 a share. Termeer
told Reuters it was unlikely that French drugmaker Sanofi-Aventis would go
hostile with its $18.5 billion bid and that the two sides had a good chance of
coming to terms, though negotiations could last months. [ID:nN31263373]
CARREFOUR (CARR.PA)
Retailers from Europe and Southeast Asia are expected to submit bids for
France’s Carrefour roughly $1 billion-worth of Asian assets, with first-round
offers due on Wednesday, sources said, in what is turning out to be a robust
auction. Europe’s top retailer is exiting Singapore, Malaysia and Thailand to
focus on markets where it has a leading position. [ID:nTOE68004Q]
VIVENDI (VIV.PA)
Europe’s biggest media, entertainment and telecoms group raised its outlook
for this year, saying core earnings or EBITDA as well as adjusted net income
would increase from 2009 levels. [ID:nWEA6332] [ID:nWEA6328]
IBERDROLA (IBE.MC), GAS NATURAL (GAS.MC), ENDESA (ELE.MC)
Spain’s utilities hope to issue up to 5 billion euros of securities this
month to pay the difference between energy costs and electricity tariffs
accumulated and estimated to 2013, Cinco Dias reported, citing various sector
sources.
WENDEL (MWDP.PA)
French investment group Wendel swung back to a net profit of 124.5 million
euros ($157.4 million) in the first half as the companies in which it holds
shares returned to growth. [ID:nLDE68002K]
HOLCIM (HOLN.VX)
JK Cement (JKCE.BO) on Tuesday denied a newspaper report which, citing
unnamed sources, said top officials of the firm met their counterparts in Holcim
AG (HOLN.VX) to discuss acquisitions and joint ventures.
TECNICAS REUNIDAS (TRE.MC)
Spain’s Tecnicas Reunidas posted solid growth in first half core profit on
Tuesday, in line with the oil engineer’s revenue increase and analyst forecasts.
VINCI (SGEF.PA)
The world’s largest construction group posted a rise in first-half operating
profit, driven by its roads business, and said full-year revenues should
increase by 5 percent. [ID:nLDE67U1L4]
BHP BILLITON (BLT.L)
China may launch an antimonopoly probe into BHP Billiton’s $39 billion bid
for Canada’s Potash Corp (POT.TO), the China Business News said on Wednesday,
citing a source familiar with the matter.
HENKEL (HNKG_p.DE)
Henkel is winning market share in cosmetics and toiletries and sees further
growth through the end of the year, the board member responsible for that
business, Hans Van Bylen, told the Frankfurter Allgemeine Zeitung.
UNICREDIT (CRDI.MI)
The bank will launch talks with unions next week over its domestic
streamlining programme, sources close to the issue said on Tuesday. The bank has
targeted 4,700 job cuts for 2011 to 2013 as part of the programme.
Italy will ensure that Libya’s investment in UniCredit will remain clear and
free of any irregularity, Foreign Minister Franco Frattini said on Tuesday.
[ID:nLDE67U1Y6]
BOUYGUES (BOUY.PA)
The French construction-to-media conglomerate slightly raised its full-year
sales target on better-than-expected first-half sales, pledging to step up
action to turn around its struggling Colas unit. [ID:nLDE67U1QG]
(Reporting by Atul Prakash)
