April 5, 2012 / 5:37 AM / 5 years ago

Europe Factors-Shares seen halting sell-off; BoE eyed

PARIS, April 5 (Reuters) - European stocks were seen rising on Thursday,
halting a steep two-session drop as investors start to look at potential
bargains, although gains could be limited with no positive catalyst in sight
while investors will remain cautious ahead of the Easter break.	
    At 0624 GMT, futures for Euro STOXX 50, for Germany's DAX 
and for France's CAC were up 0.5-0.6 percent.	
    The euro zone's blue chip Euro STOXX 50 index tumbled 2.5
percent on Wednesday, suffering its second steepest sell-off of the year and
hitting its lowest level since mid-January as poor demand at Spain's debt
auction sparked fears of a new escalation in the euro zone debt crisis.	
    The index has now surrendered half of its gains made since the European
Central Bank's first massive liquidity injection in mid-December.	
    "This correction is morphing into a real change in trend, although we still
need confirmation. The most disciplined investors have seen their tight stop
losses triggered already and they are out. It's very complicated to stay long
now, especially ahead of the long Easter weekend," said David Thebault, head of
quantitative sales trading, at Global Equities.	
    The Euro STOXX 50, which on Wednesday tested the 50 percent Fibonacci
retracement of the recent three-month rally, at 2,397 points, but managed to
close a hair above it, will face resistance at 2,448 points, the 23.6 percent
retracement of the latest pull-back.	
    On the downside, the first key support level is at 2,384 points, the index's
200-day moving average.	
    Investors will focus on the Bank of England on Thursday. All 56 economists
polled by Reuters last week said they expected the BoE to leave interest rates
and the target for its asset purchases unchanged, and most economists think the
bank will not expand its quantitative easing programme this year.
    	
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 MARKET SNAPSHOT AT 0623 GMT                            
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,398.96  -1.02 %   -14.42
 NIKKEI                              9,767.61  -0.53 %   -52.38
 MSCI ASIA EX-JP                       521.42  -0.16 %    -0.81
 EUR/USD                               1.3151   0.09 %   0.0012
 USD/JPY                                82.22  -0.24 %  -0.2000
 10-YR US TSY YLD                       2.234       --     0.01
 10-YR BUND YLD                         1.812       --     0.01
 SPOT GOLD                          $1,625.91   0.41 %    $6.66
 US CRUDE                             $102.23   0.75 %     0.77
 	
    GLOBAL MARKETS-Shares sag as debt worry stings risk appetite 	
    Wall St down on stimulus doubts, Spain debt sale             	
    Nikkei hits 4-week low on renewed euro zone worries          	
    Brent rises near $123; eyes U.S. jobs report                 	
    Euro, Aussie nurse losses after sell-off, still vulnerable   	
    METALS-London copper gains, Shanghai cuts losses after data  	
    Gold rebounds; dashed easing hopes, euro weigh               	
    TREASURIES-Bonds edge up in Asia as stocks slip              	
    	
    COMPANY NEWS:	
    	
    SANOFI  	
    The drugmaker said the U.S. Food and Drug Administration had granted
priority review for its Zaltrap drug for the treatment of colorectal cancer but
that a late-stage study showed the drug did not meet its targets in the
treatment of prostate cancer. 	
    	
    DAIMLER, VOLKSWAGEN, BMW, FIAT   	
    The German carmakers are against any sort of European Union intervention
that would help companies shut down excess automotive factories, carmakers'
lobby group ACEA president Sergio Marchionne said. Fiat CEO also said European
new car sales will decline for the fifth year in a row. 
 	
    	
    HENKEL, L'OREAL  	
    The consumer goods group's cosmetics division is winning market share in
Europe, Hans van Bylen, head of the division, told Handelsblatt. 	
    	
    TELECOM ITALIA  	
    Italian lawmakers on Wednesday approved legislation to open up the country's
telecoms market despite concerns from the European Commission and telecoms
operators such as Telecom Italia that it may undermine the national regulator's
independence and power 	
        	
    CREDIT SUISSE  	
    Swiss bank Credit Suisse said on Tuesday it had completed the
repurchase of 4.7 billion Swiss francs ($5.12 billion)of its own debt as part of
its efforts to comply with new global capital adequacy rules. 	
    	
    EDF, EDISON  	
    The French power group raised doubt over its plan to take control of Italian
power producer Edison after Italy's market regulator Consob said EDF
needed to raise the price it had proposed to buy out the shareholders of Edison.
 	
    	
    THALES  	
    The French defence electronics group said it had completed the acquisition
of Tampa Microwave, a privately held company specialising in tactical satellite
communications terminals. Financial details were not disclosed.

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