European Factors to Watch-Shares seen tracking U.S. shares lower
LONDON (Reuters) - European stocks were set to fall for the sixth consecutive session on Tuesday, tracking a drop in Asian and U.S. shares as investors mulled the prospect of a U.S. interest rate rise as early as September.
At 0607 GMT, futures on Britain's FTSE 100, the Eurostoxx 50, France's CAC and Germany's DAX were down 0.6 to 0.2 percent. U.S. stocks fell on Monday, with the Dow Jones dropping into negative territory for 2015. Investors have grown more nervous about the timing of the Federal Reserve's first rate hike in nearly a decade following stronger-than-expected May jobs data released on Friday, and there is speculation of a rate hike in September, sooner than some expected.
"If the Greek saga at home wasn't enough to trouble traders, US markets are
continuing to shudder at the thought of a looming Fed rate hike," Jonathan Sudaria, trader at London Capital Group, said in a note. Investors were also concerned about the ongoing negotiations between Greece and its international creditors. Greece proclaimed a new willingness to compromise with the EU and IMF on Monday, as German Chancellor Angela Merkel warned that time was running out for a reform-for-aid deal to keep the country in the euro. The pan-European FTSEurofirst 300 ended 0.9 percent lower on Monday, dropping to a one-month low. The index has fallen for 5 straight sessions, and is just 0.6 percent above setting a new 3-1/2 month low. Banks could come into focus on Tuesday after HSBC said it would cut almost 50,000 jobs from its payroll, take an axe to its investment bank and shrink its risk weighted assets by $290 billion in an effort to improve its sluggish performance.
The company said it would sell its global paper hydrous kaolin business to
Trade union Verdi welcomed a leadership change at Germany's biggest lender,
with a spokesman for Verdi telling Stuttgarter Zeitung that Deutsche's new Chief
Executive John Cryan has excellent insights into the strategy for the coming
Separately, a former Deutsche Bank broker convicted in what prosecutors
called the largest criminal tax fraud in history won a new trial on Monday after
a U.S. appeals court concluded that a woman who lied to get on the jury had
irreparably tainted the verdict.
Workers at Deutsche Post continue a strike that started on Monday. Chief
Executive Frank Appel tells daily Bild he is prepared to resume negotiations
with trade union Verdi.
The New York Post reports that Deutsche Telekom CEO Timotheus Hoettges is
not very interested in merging T-Mobile US with Dish Network.
Henkel and Coty Inc, both of which have personal care and cosmetics
businesses, made binding offers to buy separate parts of Procter & Gamble Co's
beauty businesses worth up to a total of $12 billion, according to people
familiar with the matter.
Airlines have $3.7 billion of cash from ticket sales trapped in Venezuela
because of currency controls in the South American country, the International
Air Transport Association said on Monday.
Separately, Air France-KLM said it was considering following a
move by Lufthansa to levy a charge on tickets booked via third parties as a way
of increasing its per-ticket earnings.
The industrial group aims to strike an agreement over job cuts with
organised labour this summer, the company's head of personnel, Janina Kugel, was
cited a saying by newspaper Handelsblatt.
Novartis is well placed in the hot field of cancer immunotherapy, despite
being behind rivals in developing immune system-boosting drugs known as
checkpoint inhibitors, a top executive at the Swiss drugmaker said on Monday.
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The German government has decided to buy the MEADS missile defense system
built by European defense group MBDA and Lockheed Martin Corp, instead
of the Patriot system built by Raytheon Co, a German government source
said late Monday, confirming reports in German and U.S. media.
Separately, the chief executive of Airbus said some potential
customers were more seriously studying its A380 super jumbo than before.
HSBC will cut almost 50,000 jobs from its payroll, take an axe to its
investment bank and shrink its risk weighted assets by $290 billion in an effort
to improve its sluggish performance, Europe's biggest bank said on Tuesday.
British retailer Tesco Plc has invited at least six firms including KKR & Co
and Carlyle Group to bid for its South Korean unit Homeplus,
valued at about $6 billion, people familiar with the matter told Reuters.
Exor sent letter to PartnerRe preferred shareholders on Monday as part of an
ongoing process to make sure all the reinsurer's shareholders have the
information needed on its future.
The oil major said on Monday former Saipem CEO Umberto Vergine had been
appointed as head of its midstream oil and gas division.
Eni CEO speaks on energy at a conference in Milan (0900 GMT)
The drugmaker said it was on track to resubmit an application for
authorisation of its lixisenatide drug for the treatment of type 2 diabetes to
the U.S. Food and Drug Administration (FDA) in the third quarter.
The airline is considering following a move by Lufthansa to levy a charge on
tickets booked via third parties as a way of increasing its per-ticket earnings,
the airline's chief executive said.
The oil company said normal operations had been restored to the company's
225,500 barrel per day (bpd) Port Arthur, Texas, refinery by late on Monday
morning following a malfunction on Sunday that affected the plant's three sulfur
The outdoor advertising company said it won a five-year bus ad contract in
Hong Kong starting on July 1. The contracts cover 1,640 buses.
The company said first-quarter revenue rose 11 percent to 286 million euros
and confirmed its full-year revenue target.
A consortium of Paris airports operator ADP, Vinci and Italy's Astaldi
signed a deal to run Santiago's international airport for the next 20
years and build a new terminal.
The broadcaster is creating a team to expand its online video business,
especially in North America, responding to a change in viewing habits away from
traditional broadcasting to the Internet.
Sky Plc said it would pay minority shareholders of Sky Deutschland
6.68 euros per share in a squeeze-out.
The Swiss bank said it expects its asset transfer to UBS Switzerland from
UBS AG to become effective on June 14.
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The company raised its full-year guidance, saying it now aimed for a revenue
increase of more than 5 percent, excluding currency effects.
MAJOR MACROECONOMIC DATA/EVENTS (GMT) :
0545 CH Unemployment
0645 FR Budget Balance
0715 CH CPI
0830 GB Trade Balance
0900 EZ GDP Revised
1255 US Redbook
1400 US Wholesale Inventories
MARKET SNAPSHOT AT 0549 GMT:
LAST PCT CHG NET
S&P 500 2,079.28 -0.65 % -13.55
NIKKEI 20142.29 -1.54 % -314.9
MSCI ASIA EX-JP <.MIAPJ0000PUS 478.63 -0.85 % -4.08
EUR/USD 1.1316 0.22 % 0.0025
USD/JPY 124.35 -0.1 % -0.120
10-YR US TSY 2.368 -- -0.01
10-YR BUND YLD 0.887 -- 0.00
SPOT GOLD $1,176.5 0.27 % $3.13
US CRUDE $58.45 0.53 % 0.31
> GLOBAL MARKETS-Asian shares swoon, dollar on defensive
> US STOCKS-Wall St ends lower, Dow slips into loss for 2015
> Nikkei falls to 2-1/2 week low on caution over Greece, Fed
> U.S. bond yields fall as Greece worries stoke safety bid
> FOREX-Dollar struggles after pullback against euro
> Gold edges up on weaker dollar, but rate outlook caps gains
> METALS-Copper firms on softer dollar, China stimulus bets
> Oil prices rise on hopes for China stimulus
(Reporting by Liisa Tuhkanen, Editing by Alistair Smout)