Thursday, February 2, 2012

European shares market february 2 2012

European shares market february 2 2012 : European shares were expected to open slightly higher on Thursday, adding to solid gains in the previous session after a string of strong economic indicators fuelled optimism that upcoming U.S. jobs data could also be upbeat, although Deutsche Bank is set to fall after its results lagged forecasts.

Glencore is also set to be in focus after a report it was nearing an agreement to combine with Xstrata in a deal that would value the joint entity at 52 billion pounds. The report sent Glencore's Hong Kong-listed stock up 6 percent before trading was suspended.

The FTSEurofirst 300 index of top European shares closed at a high not seen since early August on Wednesday but was still to reach "overbought" territory, the index's 14-day exponential relative strength index showed, and it was supported by its 14-day moving average.

Futures for Euro STOXX 50, for Germany's DAX and for France's CAC 40 were 0.1 percent to 0.2 percent higher. Financial spreadbetters earlier expected Britain's FTSE 100 to open 3 to 4 points lower, or as much as 0.1 percent.

"Given the strong gains of last night, it is not surprising that we are looking at a flattish start to the European session, but that could easily change based on an array of potentially market moving data," Cameron Peacock, market analyst at IG Markets, said.

Thursday's economic calendar includes euro zone producer prices data for December, due at 1000 GMT, which is expected to show a 0.2 percent contraction month-on-month after a 0.2 percent increase in November.

Across the Atlantic, U.S. weekly jobless claims data will be published at 1330 GMT, with the number of new applicants expected to come in at 375,000, aslight decline from 377,000 last week. The release will be closely scrutinised as investors look for indications on the U.S. job market ahead of Friday'sall-important non-farm payrolls release for January.

U.S. productivity and labour cost data for the forth quarter of 2011 will also be released at 1330 GMT on Thursday. Productivity is forecast to rise 0.8 percent versus a 2.3 percent rise the final third quarter report. Unit labor costs are expected to rise 0.8 percent compared with a 2.5 percent decrease in the previous quarter.

The Federal Reserve chairman Ben Bernanke and the Chicago Federal Reserve Bank President Charles Evans are due to hold a joint interview at the Chicago Fed at 1400 GMT.

Shares in Deutsche Bank were sharply lower in pre-market trade after the lender's fourth-quarter earnings missed expectations, hit by a hefty loss at its investment banking unit.

COMPANY NEWS

DEUTSCHE BANK
The bank posted a fourth-quarter pretax loss after it suffered from the sovereign debt crisis, as Josef Ackermann delivers his final earnings as chief executive on Thursday.

MUNICH RE
The German reinsurer's 2011 results beat expectations with net profit of 710 million euros ($937 million) in 2011, helped by favourable tax effects from the reinsurer's big damage claim payouts last year.

ASTRAZENECA
The drug maker is cutting a further 7,300 jobs and expects earnings to fall
this year as patents on key drugs expire and governments in Europe and the
United States squeeze prices.

ROYAL DUTCH SHELL
The energy company reported a 14 percent rise in fourth quarter profits on Thursday, as high oil prices outweighed dismal industry-wide margins in its refining business.

UNILEVER
Consumer goods giant Unilever warned of a difficult 2012 on Thursday due to a tough economic outlook after broadly matching 2011 sales forecasts after it hiked prices and saw strong emerging market growth.

GLENCORE INTERNATIONAL, XSTRATA
Glencore is nearing an agreement to combine with Xstrata in a deal that may value the combined entity at 52 billion pounds ($82.46 billion), Bloomberg said, citing two people with knowledge of the plan.

NOVO NORDISK
Danish drugmaker Novo Nordisk stood by its 2012 operating profit growth outlook and slightly raised its sales estimate after fourth-quarter profits beat analysts' average estimates.

TELENOR
The Norwegian telecoms firm has had its license to operate in India, along with those of other companies issued under a scandal-tainted 2008 sale, revoked by the country's Supreme Court.

Telenor said it was "unfairly treated" and "shocked" by the penalty imposed by the court and said it would exercise all options to ensure it continues tooperate in the fast-growing Asian economy.

IPSEN
French pharmaceutical company Ipsen on Thursday said fourth-quarter sales rose 14.6 percent, driven by specialty therapies and international markets.

AUTOS
U.S. vehicle sales figures for January. BMW reported a 5.8 percent increase, buoyed by demand for its 6 Series model and the MINI Countryman. Sales of Mercedes-Benz vehicles jumped 23.8 percent on the back of C-Class and M-Class deliveries.

Volkswagen's Audi saw sales rise by 19.7 percent, bolstered by the A6 model. Porsche AG's sales were up 6.0 percent, driven by its 911 and Panamera models.

TELIASONERA
Nordic and emerging market telecoms firm TeliaSonera forecast weak sales growth and flat core profitability in 2012 on Thursday after reporting quarterly earnings just above expectations.

UNIBAIL-RODAMCO
Europe's biggest listed property group predicted a return to earnings growth this year, helped by rising income from renting out its shopping malls and offices.

ALSTOM
The engineering group won a contract from the Land Transport Authority of Singapore worth around 240 million euros to provide new trains for two metro lines, along with a signalling upgrade for both lines. Delivery is to start in 2015.

BENETTON
The Benetton family said on Wednesday it will buy out minority investors for 4.60 euros a share, in a tender

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