Europe Factors-Shares set to dip; banks in focus

(Adds futures, company news, updates snapshot table)

PARIS, Oct 20 (BestGrowthStock) – European stocks were set to dip on
Wednesday, with banking shares in focus after mounting worries over U.S.
mortgage bonds triggered a late sell-off on Wall Street while investors continue
to fret about China’s surprise interest rate hike.

By 0619 GMT, futures for the STOXX Europe 50 (STXEc1: ), for Germany’s DAX (FDXc1: ) and for France’s CAC (FCEc1: ) were down 0.02-0.15 percent.

On Wall Street on Tuesday, worries that Bank of America (BAC.N: ) will be
forced to buy back billions of dollars in troubled mortgage bonds from investors
eclipsed forecast-beating results posted by the biggest U.S. bank and dragged
its shares down 4.3 percent and weighed on the broad market. [ID:nN19106691]

Asian stocks retreated on Wednesday, with Japan’s Nikkei average sinking 1.7
percent, after China’s first interest rate hike since 2007 sparked fears the
country may be starting a monetary policy tightening cycle. [ID:nLDE69J02I]

“The move certainly has the potential to take some of the heat out of the
commodities sector as this indicates willingness by Beijing to try and reign in
demand, whilst it’s also lending some valuable support to the greenback,” IG
Markets analyst Chris Weston wrote in a note.
Investors will also closely watch developments from the British Parliament
where the coalition government will announce a major spending review that aims
to slash public spending. [ID:[ID:nLDE6720PZ]

After taking a beating following disappointing results from IBM (IBM.N: ) and Apple (AAPL.O: ) earlier this week, tech shares will again be in the spotlight after Yahoo (YHOO.O: ) posted results
544499809

The Euro STOXX 50 (.STOXX50E: ), the euro zone’s blue chip index, lost 0.5
percent on Tuesday to 2,837.33 points, closing a hair below a key support level,
the 38.2 percent Fibonacci retracement of the index’s drop from a 2007 peak to a
March 2009 low. The index’s next key support level is at 2,805.95 points, which
represents the 61.8 percent retracement of a fall from an April high to a May
low.

———————-MARKET SNAPSHOT AT 0621 GMT———————-

LAST PCT CHG NET CHG

S&P 500 (.SPX: ) 1,165.90 -1.59 % -18.81

NIKKEI (.N225: ) 9,381.60 -1.65 % -157.85

MSCI ASIA EX-JP (.MIASJ0000PUS: ) 546.51 -0.04 % -0.24

EUR/USD (EUR=: ) 1.3783 0.37 % 0.0051

USD/JPY (JPY=: ) 81.28 -0.40 % -0.3300

10-YR US TSY YLD (US10YT=RR: ) 2.479 — 0.00

10-YR BUND YLD (EU10YT=RR: ) 2.405 — 0.00

SPOT GOLD (XAU=: ) $1,339.90 0.29 % $3.90

US CRUDE (CLc1: ) $80.12 0.79 % 0.63

———————————————————————–

Wall St drops as mortgage worries hit banks [ID:nN19152348]

GLOBAL MARKETS-Asia stocks slide after China rate rise [ID:nSGE69J021]

Nikkei down 2 pct on China rate hike, Wall St drop [ID:nTOE69J01E]

China, Hong Kong property stocks fall on rate rise [ID:nTOE69J020]

Dollar slips off highs hit on China rate rise [ID:nTOE69J02V]

Oil up as reaction to China rate hike seen overdone [ID:nSGE69J03Q]

Gold steady after sharp fall, bargain-hunting seen [ID:nSGE69J01E]

Copper off lows; China rate move still weighs [ID:nSGE69J01S]

COMPANY NEWS:

TOMTOM (TOM2.AS: )

The Dutch navigation device maker maintained its full-year outlook on Wednesday despite increased competition from free navigation on Apple’s iPhones and other smartphones. [ID:nLDE69J06O]
167772161

SANOFI-AVENTIS (SASY.PA: )

* The French drugmaker said a deadline relating to its proposed acquisition
of Genzyme had expired, giving it the green light from U.S. competition
authorities for the transaction.

* A Manhattan federal judge ordered Apotex Inc to pay the French drugmaker
and Bristol-Myers Squibb Co (BMY.N: ) $442.2 million plus interest for infringing
their patent on Plavix, a top-selling drug that prevents blood clots.
[ID:nN19133572]

PSA PEUGEOT CITROEN (PEUP.PA: )

The French carmaker raised its full-year operating income target slightly on Wednesday as it gave more optimistic full-year forecasts for the European, Chinese and Latin American car marke
1953705482

FAURECIA (EDEP.PA: )

The French car parts maker said investment fund One Equity Partners launched
the sale of its 13 percent stake in the company on Tuesday through a share
placement with institutional investors. [ID:nLDE69I2B0]

BAE SYSTEMS (BAES.L: )

General Electric Co (GE.N: ), Honeywell International (HON.N: ) and United Technologies (UTX.N: ) are among the suitors for BAE Systems’ aerospace unit that could fetch up to $2 billion for Euro
1885677427

STATOIL (STL.OL: )

Norwegian oil firm said Wednesday the initital public offering (IPO) of its filling station unit was amply covered on the upper half of the initial price range, suggesting bidders should u
1881175144

EDENRED (EDEN.PA: )

The French vouchers group nudged up its 2010 profit goal on Tuesday after
sales growth accelerated in the third quarter, driven by strong demand in Latin
America, notably Brazil. [ID:nLDE69H0MJ]

TELE2 (TEL2b.ST: )

The Swedish telecom operator posted third-quarter core profits above
expectations and 13 percent higher year-on-year, driven by new customers in
Russia and smartphone usage at home. [TEL2b.ST-E]

ALSTOM (ALSO.PA: ), SIEMENS (SIEGn.DE: )

The French train maker is threatening to sue Eurostar in a British court
over its decision to make Siemens (SIEGn.DE: ) preferred bidder for a high-speed
train order, Eurostar’s chairman said on Tuesday. [ID:nLDE69I2B3]

TOTAL (TOTF.PA: )

The French oil major expects to beef up its investments in exploring oil in
lesser known areas of the world and reorganise its exploration and production
division to improve growth, French newspaper Les Echos reported.
[TOTF.PA-LEN-RTRS]

VOLKSWAGEN (VOWG.DE: )

The carmaker is in advanced talks with Russian carmaker Gaz (GAZA.RTS: ) to
assemble vehicles under contract in Nizhny Novgorod, the Financial Times said on
Wednesday. Citing two people briefed with the talks, the newspaper said the
carmakers are discussing a deal that could see Gaz assemble as many as 150,000
vehicles for Volkswagen each year. [ID:nLDE69J008]

(Reporting by Blaise Robinson; Editing by Hans Peters)

Europe Factors-Shares set to dip; banks in focus