Europe Factors-Shares seen opening lower; commods eyed

(Adds detail, company news; updates snapshot table)

LONDON, Oct 19 (BestGrowthStock) – European shares are expected to open slightly
lower on Tuesday after closing 0.3 percent firmer in the previous session, with
weaker commodity prices seen putting pressure on oils and mining stocks.

Futures for the STOXX Europe 50 (STXEc1: ), Germany’s DAX (FDXc1: ) and France’s
CAC (FCEc1: ) were down between 0.02 and 0.2 percent. Financial spreadbetters had
earlier expected Britain’s FTSE 100 (.FTSE: ) to open as much as 0.3 percent

Resource-related shares may come under pressure at the open after crude oil
(CLc1: ) fell on forecasts for rising crude inventories in top consumer the United
States, while copper (MCU3: ) fell 0.2 percent and aluminium (MAL3: ) declined 0.4

“Wall Street may have finished comfortably in positive territory last night
but profit taking off the back of better than expected earnings news from Apple
and IBM initiated a prompt reversion across the board, underlining the general
lack of conviction any gains seem to have at the moment,” said Chris Weston,
research analyst at IG Markets.

“Banks however continue to remain in focus and are delivering much of the
upside in Asian trade, but with a round of U.S.-based institutions due to report
before trade recommences on Wall Street, again further direction could be seen,”
he said in a note.

Investors await U.S. September housing starts data, due for release at 1230
GMT. On the earnings front, Bank of America (BAC.N: ), Goldman Sachs (GS.N: ),
Johnson & Johnson (JNJ.N: ), Coca-Cola (KO.N: ) and Yahoo (YHOO.O: ) are set to
announce results.

On Monday, European shares rose to their highest closing level in nearly six
months, with banks boosted by upbeat results from U.S. lender Citigroup (C.N: ),
while oil majors drew support from a rally in crude prices.

The pan-European FTSEurofirst 300 (.FTEU3: ) index of top shares closed 0.3
percent higher at 1,088.40 points, its highest closing level since April 26.

———————-MARKET SNAPSHOT AT 0632 GMT———————-


S&P 500 (.SPX: ) 1,184.71 0.72 % 8.52

NIKKEI (.N225: ) 9,539.45 0.43 % 40.96

MSCI ASIA EX-JP (.MIASJ0000PUS: ) 545.91 -0.23 % -1.24

EUR/USD (EUR=: ) 1.391 -0.25 % -0.0035

USD/JPY (JPY=: ) 81.42 0.22 % 0.1800

10-YR US TSY YLD (US10YT=RR: ) 2.506 — -0.01

10-YR BUND YLD (EU10YT=RR: ) 2.374 — -0.01

SPOT GOLD (XAU=: ) $1,366.50 -0.14 % -$1.95

US CRUDE (CLc1: ) $82.72 -0.43 % -0.36




Miner Xstrata posted a 10 percent rise in third-quarter copper output and a
5 percent fall in coal, its two most profitable products. [ID:nLDE69H1NG]


Yara International said fertiliser margins improved, sales volumes increased
and plants were run at close to optimal capacity. It also said that the decline
in grain production estimates had increased grain prices sharply and boosted
fertiliser demand and prices. [ID:nOSN004767]


Nokia’s rival Apple reported better-than-expected profit and revenue in
fiscal fourth quarter results overnight, although weaker-than-expected gross
margins and iPad shipments disappointed investors.

Apple’s net profit rose to $4.31 billion, or $4.64 a share, in the fiscal
fourth-quarter ended Sept. 25, from $2.53 billion, or $2.77 cents a share, in
the year-ago period.


Italy’s grid operator will invest proceeds from the sale of its solar power
assets in other energy projects as it moves to secure higher returns on
investments, its chief executive said. [ID:nLDE69H1Y0]


The luxury carmaker and France’s Peugeot Citroen (PSA) (PEUP.PA: ) will extend
their engine partnership to include jointly developing, purchasing and producing
hybrid powertrain components. BMW said on Monday it expects significant cost
savings thanks to the deal, which will allow both companies to standardise key
components needed to make electric motors used in hybrid vehicles.


Chief Executive Frank Appel reiterated in Boersen-Zeitung that he expects
the group to post full-year earnings before interest and taxes (EBIT) of between
1.9 billion euros and 2.1 billion euros, thereby meeting guidance. The group
raised its outlook in early August. Related news [DPWGn.DE-E]


The group has put its Indian housing finance business up for sale, in line
with a global restructuring of the company, the Business Standard newspaper
reported on Tuesday. Tata Finance, L&T Finance, Indiabulls and Religare have
shown interest in buying Deutsche Postbank Home Finance Ltd, which is valued at
15 billion rupees ($530.6 million), the newspaper said, citing unidentified
investment banking sources. [ID:nSGE69I04V] Related news [DPBGn.DE-E]


The group may have to correct errors in its balance sheets from the last two
fiscal years, Financial Times Deutschland reported. Related news [IFXGn.DE]


UK asset manager Jupiter posted a 12 percent rise in assets under management
to 22.2 billion pounds at end-Sept. due to steady net inflows into its mutual
funds, it said in a statement on Tuesday.


UK-based explorer Premier Oil (PMO.L: ) is mulling a $500 million bid for BP’s
(BP.L: ) gas production business in Pakistan, the Times newspaper said on Tuesday.


The German engineering conglomerate will supply intelligent technology and
electricity networks for the emerging global clean-technology cluster, Masdar
City in Abu Dhabi, Handelsblatt newspaper reported. Related news [SIEGn.DE-E]


Newly appointed Financial Markets Minister Peter Norman said in an interview
with Swedish business daily Dagens Industri there is no time frame for selling
its holdings in state-owned companies SBAB, Teliasonera and Nordea. [TLSN.ST]

(Reporting by Atul Prakash; editing by Simon Jessop)

Europe Factors-Shares seen opening lower; commods eyed