European Factors to Watch-Shares seen lower, focus on jobs data

Fri Nov 2, 2012 1:13pm IST

LONDON, Nov 2 (Reuters) - European shares are expected to open slightly
lower on Friday, with investors unlikely to commit to large, new bets before
U.S. employment data later in the day, while mediocre corporate earnings may
also peg back markets.
    Futures for both the Euro STOXX 50 index and Germany's DAX
 were down 0.2 percent, while futures for Frances's CAC-40 index 
fell 0.1 percent. Financial spreadbetters earlier predicted Britain's FTSE 100
 to open down as much as 0.1 percent.
    "You might continue to see trading being mixed in the run up to the U.S.
employment data, although we think the U.S. number might be a good one. We had a
good day yesterday, so investors might want to consolidate some of those gains,"
said Central Markets senior trader Joe Neighbour.
    U.S. non-farm payrolls employment data is released at 1230 GMT - the last
set of major U.S. economic data before the country's Presidential elections on
Nov. 6. 
    The numbers are expected to show that non-farm employers added just 125,000
jobs last month - not enough to prevent the jobless rate from rising a tenth of
a point to 7.9 percent.
    "Despite yesterday's gains, the heady risk on sentiment is temporarily on
pause as traders wait to see the state of the non-farm jobs data and the
unemployment rate for the U.S.," London Capital Group dealer Jonathan Sudaria
wrote in a note.
    On Thursday, the FTSEurofirst 300 index rose 1.2 percent to
1,109.99 points, recovering from a 0.6 percent fall on Wednesday.
    According to data from Thomson Reuters Starmine, 57 percent of the companies
on the STOXX Europe 600 index have so far beaten or met expectations
for their third-quarter results, although earnings estimates for the fourth
quarter have been cut by an average 1.2 percent on those companies that have
reported.  
    
 MARKET SNAPSHOT AT 0735 GMT                               
                                      LAST        PCT CHG  NET CHG
 S&P 500                              1,427.59    1.09 %   15.43
 NIKKEI                               9,051.22    1.17 %   104.35
 MSCI ASIA EX-JP                                  0.92 %   4.77
 EUR/USD                              1.2893      -0.38 %  -0.0049
 USD/JPY                              80.31       0.22 %   0.1800
 10-YR US TSY YLD                     1.728       --       0.00
 10-YR BUND YLD                       1.463       --       -0.01
 SPOT GOLD                            $1,709.41   -0.27 %  -$4.68
 US CRUDE                             $86.69      -0.46 %  -0.40
  
    > GLOBAL MARKETS-Asian shares rise as positive data buoys risk appetite
 
    > U.S. STOCKS - Wall St jumps on strong consumer and jobs data 
    > Nikkei rises on hopes for U.S. economic recovery 
    > TREASURIES-U.S. 30-year bond extends loss to point 
    > FOREX-Yen dangles near 4-month low, commodity currencies firm 
    > PRECIOUS-Gold edges down ahead of US jobs data 
    > METALS-LME copper edges down; U.S. jobs data eyed 
    > Brent inches below $108 ahead of U.S. jobs data 
    
    COMPANY NEWS:
    ALCATEL-LUCENT 
    Telecom equipment maker Alcatel-Lucent posted its second straight quarter of
losses on Friday, hurt by a sector-wide slump as operators cut back spending on
mobile and fixed networks. 
    
    AKER SOLUTIONS 
    Norwegian oil services firm Aker Solutions reported July-September earnings
in line with forecasts on Friday, with most of its markets showing strong
demand. 
    
    DEUTSCHE TELEKOM 
    Deutsche Telekom is considering slashing its dividend by up to a third from
2013 onward, German business daily Handelsblatt reported, citing supervisory
board sources. 
    
    ROYAL BANK OF SCOTLAND 
    Part-nationalised lender Royal Bank of Scotland reported an increase in
third-quarter operating profit benefiting from a decline in bad debt charges and
said its restructuring would be complete in the next 18 months. 
    The Scottish bank added it expected to enter settlement talks soon over a
probe into alleged rigging of the Libor interest rates.
    
    BEIERSDORF 
    Beiersdorf, the maker of Nivea skin care products, increased its revenue
outlook for 2012 on Friday. 
    
    ADMIRAL 
    British insurer Admiral posted a rise in group turnover.
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