Reuters: Market News: Europe Factors-Shares set to drop after disappointing US jobs

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Europe Factors-Shares set to drop after disappointing US jobs Apr 10th 2012, 06:39 Tue Apr 10, 2012 2:39am EDT PARIS, April 10 (Reuters) - European stocks are set to drop on Tuesday following a long holiday weekend, tracking sharp losses on Wall Street where disappointing U.S. monthly jobs data prompted investors to further cut their exposure to risky assets such as equities. At 0623 GMT, futures for Euro STOXX 50, for Germany's DAX and for France's CAC were down 1.3-1.9 percent. U.S. payrolls rose far less than expected in March, data showed on Friday, adding to a series of weaker-than-expected U.S. indicators which have taken the edge off a brisk stock rally in the first quarter. Banks will be in the spotlight after U.S. Federal Reserve Chairman Ben Bernanke said on Monday financial institutions need to have more capital at hand in order to ensure the financial system is stable. "We need to have higher capital, and that's what Basel III does," he said in response to questions at an Atlanta Fed conference, referring to the latest international effort to tighten bank oversight. "That's essential for a stable financial system." Bernanke made the comments the same day that an international bank lobby group, the Institute of International Finance, urged policymakers to pause in regulating the industry. Tuesday's losses could be limited, however, after data showed China returned to an export-led trade surplus last month, fuelling hopes the global economy may be passing its low point. The euro zone's blue chip Euro STOXX 50 index has lost 8 percent since mid-March, surrendering about half of the gains made since mid-December when the European Central Bank conducted its first long-term financing operation at rock bottom interest rates. "With momentum clearly to the downside, the combination of fresh shorting pressure along with long liquidation is likely to trigger an acceleration through last week's low," said Autochartist analyst James Hyerczyk, although he warned of a potential "bear trap". "This typically occurs following a gap-lower opening when selling pressure subsides and short-traders start taking profits. The idea today will be to go with the trend, but not get caught with a large position at an extremely low level." The Euro STOXX 50's first key support level will be at 2,382 points, representing the index's 200-day moving average tested late last week, while the next support level will be at 2,347 points, which represents the 61.8 percent Fibonacci retracement of the December-March rally. -------------------------------------------------------------------------------- MARKET SNAPSHOT AT 0623 GMT LAST PCT CHG NET CHG S&P 500 1,382.20 -1.14 % -15.88 NIKKEI 9,538.02 -0.09 % -8.24 MSCI ASIA EX-JP 513.72 -0.39 % -2.01 EUR/USD 1.3108 0.02 % 0.0002 USD/JPY 81.27 -0.33 % -0.2700 10-YR US TSY YLD 2.040 -- -0.01 10-YR BUND YLD 1.676 -- -0.06 SPOT GOLD $1,651.40 0.66 % $10.77 US CRUDE $102.18 -0.27 % -0.28 GLOBAL MARKETS-Shares struggle, China data studied Dow, S&P end lower for four days; jobs data a worry Nikkei pares gains after BOJ holds fire Copper slips on slowing Chinese demand Gold hits one-week high on easing hope, physicals Yen off day's lows after BOJ, but may stay pressured Brent slips towards $122; China overall imports slide Bonds slightly lower in Asia after China data COMPANY NEWS: ROCHE Illumina, which Roche is seeking to buy, recommended on Monday that stockholders reject Roche's offer. THOMAS COOK The travel group confirmed that it is in advanced talks with lenders to extend financing arrangements as part of a strategic review that could also result in the possible sale and leaseback of some aircraft. TESCO Major shareholders in Tesco have called on the world's third-biggest retailer to rethink its strategy and improve its struggling domestic market, the Sunday Times reported, three months after the group issued a shock profit warning. SWISS LIFE The head of insurer Swiss Life believes mergers and acquisitions are difficult at the moment, with little opportunities in the Swiss market, a newspaper quoted him as saying on Saturday. ASTRAZENECA Some of the firm's biggest investors are calling for a radical shake-up of the drugmaker's board and executive team, including the replacement of David Brennan as CEO, the Financial Times reported. DIOR Belgian designer Raf Simons is taking over as artistic director at Christian Dior, the Paris fashion house announced on Monday, ending months of speculation over who would replace his disgraced predecessor, John Galliano. IAG Pilots for Spanish airline Iberia, part of International Airlines Group, went on strike on Monday, grounding 150 flights in the first of 30 one-day strikes to protest against the start-up of low-cost carrier Iberia Express. DEUTSCHE BANK Deutsche Bank denied a report in German weekly magazine Der Spiegel that it plans to cut thousands of jobs. SIEMENS Siemens may float its light bulb unit Osram on the stock exchange in the European autumn, depending on how the market for light-emitting diodes (LED) develops, the German engineering conglomerate's finance chief told a newspaper. GAS NATURAL, BG Spanish utility Gas Natural Fenosa is in talks with BG Group Plc to buy the UK oil and gas company's 65 percent stake in India's Gujarat Gas , a source with direct knowledge of the matter said on Sunday, in a deal valued at about $900 million. FINMECCANICA China South Locomotive and Rolling Stock Corp Ltd , advised by HSBC, has contacted Finmeccanica about a possible purchase of stakes in the Italian defence group's loss-making train-manufacturing unit AnsaldoBreda and its signalling systems affiliate Ansaldo STS, Il Sole 24 Ore said on Saturday in an unsourced report. ENI Libya has started investigating foreign oil companies over their past relationships with the former Muammar Gaddafi government, an investigator with the ruling National Transitional Council (NTC) said on Monday. FIAT Brazil, a key market for global automakers including Fiat, has no plans to offer further incentives for automakers, but the government does not rule out taking steps to boost the competitiveness of other industries, Trade and Industry Minister Fernando Pimentel said in an interview published on Sunday. EADS Boeing overtook Airbus in deliveries in the first quarter, setting itself on course to recapture the coveted number one spot in annual aircraft production for the first time since 2002, company data showed. EDF, ALSTOM, AREVA EDF in partnership with Alstom has won the bulk of France's first offshore wind farm tender, Energy Minister Eric Besson said. EDF won three of the tenders for offshore wind sites, while a fourth was won by Spain's Iberdrola in partnership with Areva. NOKIA Nokia's new flagship smartphone model, the Lumia 900, using Microsoft's Windows Phone software, went on sales in the United States at AT&T outlets on April 8 with mixed reviews. Rival Samsung Electronics posted a record quarterly profit, driven by booming sales of its smartphones. Smaller rival HTC Corp first quarter net profit tumbled 70 percent in the first quarter ahead of its new One series of models that are set to hit the market this month. ADIDAS German sportswear group Adidas plans to slash the number of products it offers by a quarter to improve its profitability, Chief Executive Herbert Hainer told a newspaper. Link this Share this Digg this Email Reprints

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