July 2, 2012 / 5:36 AM / 5 years ago

Europe Factors to Watch-Rally set to stall after China data

PARIS, July 2 (Reuters) - European stock index futures pointed to a mixed
open on Monday following last Friday's rally sparked by new measures to fight
the euro zone debt crisis, as investors fretted about tepid Chinese
manufacturing data that revived worries about the global economy. 
   At 0634 GMT, futures for Euro STOXX 50 were up 0.1 percent, for 
Germany's DAX down 0.09 percent and for France's CAC up 0.02
percent.
    Over the weekend, data showed China's purchasing managers' index (PMI)
dropped to 50.2 in June from May's 50.4, signalling that growth in manufacturing
sector activity was close to stalling. 
    European shares closed at a seven-week high on Friday with the euro zone's
blue chip Euro STOXX 50 index surging 5 percent, posting its biggest
jump in seven months after fresh measures taken by European leaders to tackle
the region's debt crisis sparked a relief rally.
    The Euro STOXX 50 ended Friday's session right on a major resistance level,
the 38.2 percent Fibonacci retracement level of the index's plunge from
mid-March to early June, and was getting close to 'overbought' territory, with
its 9-day relative strength index (RSI) hitting 69.7. Seventy and above is
considered 'overbought'.
    Last week, euro zone leaders agreed to let their rescue fund inject aid
directly into stricken banks from next year and intervene on bond markets to
support troubled member states, and pledged to create a single banking
supervisor for banks based around the European Central Bank. 
    "Market gains on these measures have been made. We'll have to wait until the
ECB's meeting later this week before further buying the market," said David
Thebault, head of quantitative sales trading, at Global Equities.
    "What we really need from the euro zone leaders is a real vision for growth,
investment projects in new technologies such as green packaging and renewable
energy, a segment where Europe could become a leader. That would be a game
changer."
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 MARKET SNAPSHOT AT 0635 GMT                            
                                         LAST  PCT CHG  NET CHG
 S&P 500                             1,362.16   2.49 %    33.12
 NIKKEI                              9,003.48  -0.04 %     -3.3
 MSCI ASIA EX-JP                       479.98   0.17 %     0.82
 EUR/USD                               1.2617  -0.45 %  -0.0057
 USD/JPY                                79.56  -0.41 %  -0.3300
 10-YR US TSY YLD                       1.636       --    -0.01
 10-YR BUND YLD                         1.549       --    -0.06
 SPOT GOLD                          $1,591.60  -0.34 %   -$5.39
 US CRUDE                              $83.77   -1.4 %    -1.19
 
    GLOBAL MARKETS-Asian shares rise on euro zone bank relief 
    Nikkei pares gains, investors await details of EU move    
    US STOCKS-Wall St ends weak quarter with a bang           
    FOREX-Euro takes breather after EU deal rally             
    London copper dips on China factory activity              
    TREASURIES-Yields stabilise after EU deal jump            
    PRECIOUS-Gold edges down, pauses after EU deal rally      
    Brent dips towards $96 after weak China data              
    Gold edges down, pauses after EU deal rally               
    
    COMPANY NEWS:
    
    BARCLAYS 
    Barclays Plc Chairman Marcus Agius quit on Monday and said an
interest rate rigging scandal had dealt "a devastating blow" to the bank's
reputation and "the buck stops with me". 
    
    REE, ENAGAS 
    Chinese state-held utilities company State Grid has made an offer for
Spain's public gas and electricity network companies Red Electrica and Enagas,
though the government has rejected the proposal, El Mundo reported, citing
Spanish government sources.
    
    LINDE, AIR LIQUIDE    
    German industrial gas producer Linde AG said on Sunday it has agreed to pay
$4.6 billion for Lincare Holdings Inc, a Florida-based provider of
oxygen and respiratory therapy services to patients in the home. 
    
    FRESENIUS, RHOEN-KLINIKUM AG  
    Germany's Fresenius failed to win the minimum acceptance among
Rhoen-Klinikum AG shareholders for its takeover offer, suffering a defeat in its
bid to create a nationwide network of private hospitals. 
    
    CREDIT AGRICOLE 
    The French bank is in talks to sell its Greek Emporiki Bank unit and has
received interest from three local lenders, the Financial Times reported, in the
latest sign French banks are drawing back amid ongoing instability on the euro
zone. 
    The lender is also in talks to sell its loss-making Cheuvreux brokerage arm
to financial services group Kepler Capital Markets, sources familiar with the
matter said on Friday. [ID: nL6E8HTJ47]
    
    EADS 
    French aerospace unions pressed the world's largest commercial jetmaker on
Sunday to provide guarantees over jobs and production as it prepares to unveil
plans for a new assembly plant in the United States. 
    Airbus is expected to announce on Monday a $600 million assembly line for
its best-selling A320 short-haul aircraft, starting at four planes a month from
2017. 
    
    PSA PEUGEOT CITROEN 
    French Industry Minister Arnaud Montebourg called on the management of the
struggling car maker to divulge its intentions for the future of several of its
plants quickly, as fears mount over future job cuts. 
    
    SULZER 
    Swiss engineering group Sulzer is looking for acquisitions and has
the financial firepower to spend in the range of 1 billion Swiss francs ($1.06
billion), the company's chief executive was quoted as saying on Sunday.
    
    BMW 
    BMW plans to hire thousands of permanent staff after cutting the number of
its temporary workers by half, a German magazine reported on Saturday.
 
    
    DEUTSCHE POST 
    Post will examine later this year whether conditions would allow it to raise
prices for mail service next year, after years of stable prices, its Chief
Financial Officer Larry Rosen told the Frankfurter Allgemeine
Sonntagszeitung.

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