European Factors to Watch-Shares seen higher after Friday's slump

  • Reuters
  • Stock Market News
European Factors to Watch-Shares seen higher after Friday's slump
Credit: © Reuters.

(Adds futures prices, company news)

LONDON, Sept 7 (Reuters) - European shares headed for a higher open on Monday, with a sharp sell-off in the previous session seen prompting some investors to look for bargains and cover their short-positions.

At 0626 GMT, futures for the Euro STOXX 50 STXEc1 , Germany's DAX FDXc1 , France's CAC 40 FCEc1 and Britain's FTSE FFIc1 were 0.6 to 1.0 percent higher.

The pan-European FTSEurofirst 300 index .FTEU3 closed 2.5 percent lower at 1,392.63 points on Friday as uncertainty about the timing of a likely U.S. rate hike remained after a mixed August jobs report.

"European equities are set to start with a pop higher this morning, making small inroads into recovering Friday's super-sized losses," Jonathan Sudaria, dealer at London Capital Group, said in a note.

"However, there's little in the way of news out over the weekend that could've turned sentiment. Asian markets don't seem to be showing the same optimism and so the likely cause for the higher open is merely a bit of short covering ahead of an expected light session in the U.S. due to Labour Day."

China's stock market reopened after closing over Thursday and Friday as Beijing celebrated 70 years since the end of World War Two. Shanghai shares .SSEC initially rose as much as 1.8 percent following remarks over the weekend by regulators aimed at calming the market, but the index was last down 1.6 percent.

China's policymakers and regulators tried to soothe jittery markets, promising deeper financial market reforms and stressing the economy was showing signs of stabilising.

COMPANY NEWS

GLENCORE GLEN.L

Commodities trading firm Glencore on Monday said it is set to announce fresh plans to cut its $30 billion in net debt, as it called a trading halt on its Hong Kong shares.

TESCO TSCO.L

Britain's Tesco has agreed to sell its South Korean unit to a group led by private equity firm MBK Partners for 4 billion pounds ($6.08 billion), it said on Monday, in its first major disposal since it hit financial difficulties.

ASSOCIATED BRITISH FOODS ABF.L

The company maintained its full-year earnings forecast on Monday, with progress at Primark and at its grocery, ingredients and agriculture businesses expected to be offset by a large reduction in profit in its sugar business.

NOVARTIS NOVN.VX

The drugmaker plans the first human tests next year of a "smart" contact lens it is developing with Google GOOGL.O designed to help restore the eye's natural autofocus.

CREDIT SUISSE CSGN.VX

A district court judge has asked Credit Suisse Group AG to pay $287.5 million in damages to an affiliate of Highland Capital Management, as part of a long drawn breach of contract case.

VIVENDI VIV.PA

The chief executive of the French media group did not rule out raising its stake in Spain's Telefonica TEF.MC in the future, but said there was no plan to increase its holding in Telecom Italia TLIT.MI .

ALSTOM ALSO.PA

General Electric (NYSE: GE ) Co GE.N is expected to win regulatory approval this week for its purchase of the power equipment business of France's Alstom , allowing the U.S. industrial conglomerate to finally carry out a major cost-cutting program 16 months after first announcing the deal.

MAN GROUP EMG.L

The China head of hedge fund manager Man Group said on Monday that she had not been taken into custody by Chinese authorities, denying media reports that said she had been assisting a police investigation into market volatility.

CONTINENTAL CONG.DE

The German auto components maker and union representatives have postponed further talks on cost reductions and job cuts at a factory in Gifhorn, after failing to reach an agreement on Friday.

BASF BASFn.DE

An asset swap announced between BASF and Gazprom GAZP.MM could signal an easing of tensions between Germany and Russia, the head of BASF unit Wintershall, Mario Mehren, told Handelsblatt newspaper on Monday.

DAIMLER DAIGn.DE

Financial markets have overreacted to recent economic ructions in China, Daimler CEO Dieter Zetsche said in a newspaper interview.

FRESENIUS FREG.DE

The dividend for 2015 is set to rise by clearly more than 20 percent, following an expected currency adjusted rise of 18-21 percent in earnings, CEO Ulf Schneider repeated in comments to Euro am Sonntag newspaper.

K+S SDFGn.DE

Potash Corp of Saskatchewan POT.TO has hired a third investment bank as adviser in its effort to take over K+S, newspaper Frankfurter Allgemeine Zeitung reported on Sunday.

THYSSENKRUPP TKAG.DE

ThyssenKrupp has cut costs by more than 1 billion euros this year, beating its target, and plans to press ahead with renewed savings efforts, its chief financial officer told a German newspaper.

VOLKSWAGEN VOWG_p.DE

Ousted Volkswagen (XETRA: VOWG ) chairman Ferdinand Piech prevented Chief Executive Martin Winterkorn from fulfilling his ambition to become chairman, showing the patriarch's continuing influence behind the scenes, two respected German publications reported.

Separately, VW's Porsche unit is expected to have around 25,000 employees at the end of this year or 11 percent more than in 2014, Porsche HR head Thomas Edig told Automobilwoche. More jobs would be added in the coming years, but not at a double-digit percentage rate, he said.

FIAT CHRYSLER AUTOMOBILES FCHA.MI

Fiat Chrysler Automobiles boss Sergio Marchionne said on Sunday that seeking a tie-up with General Motors (NYSE: GM ) GM.N was a "high priority" and such a deal would also be the best strategic option for its U.S. rival.

AXEL SPRINGER SPRGn.DE

Axel Springer is withdrawing from its Russian business, Russian news agency RBC reported at the weekend, citing two media sources and a government source.

MAUREL ET PROM MAUP.PA

The French energy exploration and production company said a force majeure situation had led to the interruption of the flow of crude oil in a section of the 12-inch pipeline in Gabon, leading Maurel & Prom Gabon to completely shut down its production.

IMTECH IMUN.AS

The German unit of bankrupt Dutch engineering services company Imtech is expected to be sold in November, according to Imtech Germany's insolvency administrator.

MEYER BURGER MBTN.S

The Swiss solar industry supplier believes the sector's protracted slump is on the wane and the company could return to profit as early as next year, its CEO was quoted as saying in SonntagsZeitung newspaper.

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