Europe Factors-Shares set to pause; Fed eyed

(Adds futures, company news, updates snapshot table)

PARIS, Dec 14 (BestGrowthStock) – European stocks were set to open mostly unchanged
on Tuesday, halting a brisk two-week rally following a mixed session on Wall
Street, with technical indicators signalling a potential near-term retreat.
By 0713 GMT, futures for Euro STOXX 50 (STXEc1: ) were up 0.07 percent, for
Germany’s DAX (FDXc1: ) were down 0.07 percent and for France’s CAC (FCEc1: ) were
up 0.05 percent.

The FTSEurofirst 300 (.FTEU3: ) index of top European shares gained 0.3
percent on Monday, extending its two-week rally to 6.5 percent and reaching its
highest close since September 2008, helped by upbeat Chinese macro data.

The index, however, is getting close to becoming “overbought”, with its
relative strength index (RSI) hitting 64 on Monday — 70 and above is considered
“overbought territory” — while its slow stochastic shows the index ripe for a
pull-back.

A stronger euro against the dollar could also prompt investors to book some
of the recent strong gains, particularly on shares of exporters.
Industrials-heavy DAX (.GDAXI: ) has risen 20 percent since late August.

The euro hovered near its high for December against a broadly weaker dollar,
with traders mentioning strong buying from accounts including Asian central
banks that overwhelmed hedge fund selling.

Investors awaited on Tuesday the U.S. Federal Reserve’s interest rate
decision and assessment on its bond-buying programme. The central bank is seen
leaving rates unchanged and is not expected to signal any shift away from its
intention to buy $600 billion in government debt to support the economy.
[ID:nN08167483]

The market’s focus will also be on Europe after euro zone central bank
sources told Reuters that the European Central Bank is considering requesting an
increase in its capital from euro zone member states as a cushion against any
potential losses from its bond buying. [ID:nLDE6BC26C]

Pharmaceutical stocks may be in the spotlight after a judge in Virginia on
Monday declared a key part of U.S. President Barack Obama’s landmark healthcare
law unconstitutional in the first major setback on an issue that will likely end
up at the Supreme Court. [ID:nN13251084]

———————-MARKET SNAPSHOT AT 0716 GMT———————-

LAST PCT CHG NET CHG

S&P 500 (.SPX: ) 1,240.46 0 % 0.06

NIKKEI (.N225: ) 10,316.77 0.22 % 22.88

MSCI ASIA EX-JP (.MIASJ0000PUS: ) 558.70 0.46 % 2.55

EUR/USD (EUR=: ) 1.3402 0.11 % 0.0015

USD/JPY (JPY=: ) 83.41 0.00 % 0.0000

10-YR US TSY YLD (US10YT=RR: ) 3.292 — 0.01

10-YR BUND YLD (EU10YT=RR: ) 2.950 — -0.02

SPOT GOLD (XAU=: ) $1,403.36 0.73 % $10.21

US CRUDE (CLc1: ) $88.60 -0.01 % -0.01

———————————————————————–

* Asia stocks rise on strong China growth, dollar soft [ID:nL3E6NE02W]

* Nasdaq slips after rally; Dow trims gain on China [ID:nN13227865]

* Nikkei holds gains on China growth optimism [ID:nTOE6BD01Q]

* TREASURIES-Selling exhausted, Treasuries move higher [ID:nN13582643]

* Euro near high as thin trade exaggerates moves [ID:nTOE6BD00R]

* Gold higher on listless dollar; Chinese buying pushes [ID:nL3E6NE02O]

* Copper eases after ShFE hits 1-mth peak, LME near record [ID:nL3E6NE049]

* Oil prices steady; focus still on China monetary policy [ID:nL3E6NE038]

COMPANY NEWS:

ITALIAN STOCKS

Prime Minister Silvio Berlusconi, whose media empire is headed by
broadcaster Mediaset (MS.MI: ), faces a no-confidence vote in the lower house of
parliament.

EADS (EAD.PA: )

Boeing Co (BA.N: ) is raising list prices for its planes as global air travel
demand resurges, and also said on Monday that it will stop offering a version of
its 787 Dreamliner meant to fly shorter routes. Boeing competes with EADS’s
Airbus [ID:nN13265919]

ARCELORMITTAL (ISPA.AS: )

The world’s biggest steel maker said its acquisition of Canada’s Baffinland
Iron Mines (BIM.TO: ) had been cleared by Canadian antitrust regulators and that
there were no more regulatory approvals outstanding. [ISPA.AS-LEN-RTRS]

AREVA (CEPFi.PA: )

Japan’s Mitsubishi Nuclear Fuel Co has formed a joint venture with Areva in
the United States to produce and sell nuclear fuel in the world’s biggest
nuclear market, a company spokesman said on Tuesday. Mitsubishi Nuclear Fuel, in
which France’s Areva holds a 30-percent stake, will announce details of the JV
at 0500 GMT, the spokesman said. [ID:nTOE6BD02Q]

L’OREAL (OREP.PA: )

The French cosmetics group’s U.S. unit has acquired the professional
distribution business of Nebraska-based Peel’s Salon Services. Financial details
were not disclosed. [OREP.PA]

SYNGENTA (SYNN.VX: )

The company has signed a deal with DuPont (DD.N: ) potentially worth more than
$400 million granting the U.S. chemicals-maker a worldwide license to a
protection against some crop pests. For details, see: [SYNN.VX-LEN-RTRS]

TUI AG (TUIGn.DE: )

The travel group is expected to report full-year underlying earnings before
interest, tax and amortisation (EBITA) of 14. 576 million euros ($773.2
million), according to the average of six estimates in a Reuters poll of banks
and brokerages. For a poll click: [ID:nLDE6B90WJ]

Separately, South Korean shipbuilder and electric equipment maker Hyundai
Heavy Industries Co Ltd (009540.KS: ) said on Tuesday it has won a $1.4 billion
order from Hapag-Lloyd, the shipping company part-owned by TUI AG.
[ID:nSEU003200]

ACTELION (ATLN.VX: )

Actelion Ltd, Europe’s largest biotech company, reiterated it wants to stay
independent despite intense takeover speculation, its top managers told the
Financial Times in an interview on Tuesday. [ID:nLDE6BD057]

(Reporting by Blaise Robinson)

Europe Factors-Shares set to pause; Fed eyed