European Factors to Watch-Shares seen lower on Greek jitters

  • Reuters
  • Stock Market News
European Factors to Watch-Shares seen lower on Greek jitters
Credit: © Reuters.

(Adds futures prices, company news)

By Atul Prakash

LONDON, May 12 (Reuters) - European shares headed for a weaker start on Tuesday, with lingering concerns about Greece's debt situation seen prompting equity investors to trim their trading positions.

At 0636 GMT, futures for the Euro STOXX 50 STXEc1 , Germany's DAX FDXc1 , France's CAC FCEc1 and Britain's FTSE FFIc1 fell 0.4 to 1.0 percent.

Finance ministers of the euro zone welcomed on Monday progress achieved in negotiations between Greece and its creditors on a cash-for-reform deal but said more work is needed to bridge differences holding up a comprehensive agreement. ID:nL5N0Y2255

"Reaching an agreement remains difficult to achieve despite expectations for Greece to commit a number of reforms to unlock aid," Capital Spreads dealer Jonathan Sudaria said in a note.

Greece calmed immediate fears of a default by making a crucial 750 million euro payment to the International Monetary Fund a day early. But Finance Minister Yanis Varoufakis said the liquidity situation was "terribly urgent" and a deal to release further funds was needed in the next couple of weeks.

Investors will also keep a close eye on the bond market. German Bund yields rose on Tuesday as a global sell-off in bond markets, which has surprised investors and puzzled analysts since the end of April, resumed.

Analysts have said in the past two weeks that the sell-off was partly sparked by an uptick in inflation expectations amid a rise in oil prices and uneasiness with record low yields. ID:nL5N0Y30TW

The pan-European FTSEurofirst 300 index .FTEU3 ended 0.3 percent higher at 1,592.40 points on Monday, before the U.S. equities .DJI .SPX . IXIC closed 0.2 to 0.5 percent lower.

COMPANY NEWS

DEUTSCHE POST DHL DPWGn.DE

The postal and logistics group said it would review the restructuring process at its freight division after reporting a lower than expected first quarter operating profit. ID:nL5N0Y30GB

ALLIANZ ALVG.DE

Allianz saw another 68.3 billion euros ($76.3 billion) in assets flow out of its U.S.-based asset manager Pimco in the first quarter, pushing the operating profit for the group's asset management division down by 14 percent. ID:nASM0009UB

ALSTOM ALSO.PA

General Electric (NYSE: GE ) Co GE.N said on Monday for the first time it would be willing to consider concessions in order to win European approval to acquire the power equipment unit of France's Alstom . ID:nL5N0Y2328

BHP BILLITON BLT.L

The miner expects to cut unit costs at Western Australia iron ore by 21 per cent to $16 per tonne during the 2016 financial year. ID:nWNAS00QSA

KBC KBC.BR

Belgian financial group KBC on Tuesday reported better-than-expected net profit in the first quarter due to a strong improvement in the company's insurance business and a return to profit for its unit grouping smaller markets such as Ireland. ID:nL5N0Y30JH

LLOYDS LLOY.L

Britain has reduced its stake in Lloyds by 1 percentage point to below 20 percent, days after a surprise election triumph for the Conservative party sent the bank's shares soaring to multi-year highs. ID:nFWN0Y300D

THYSSENKRUPP TKAG.DE

German industrial group ThyssenKrupp raised its full-year profit forecast thanks to better execution and stabilising economic conditions, it said on Tuesday. ID:nL5N0Y30GU

HENKEL HNKG_p.DE

The consumer goods company has agreed to acquire Colgate-Palmolive (NSE: COLG )'s CL.N entire range of laundry detergents and pre-wash brands in Australia and New Zealand for 220 million euros ($245.43 million). ID:nFWN0Y2095

ACCOR ACCP.PA

Europe's largest hotel group said it had sealed a deal to open a luxury hotel in Cuba, the 518-room Pullman Cayo Coco, near the Caribbean island's international airport. ID:nL5N0Y23Q0

EIFFAGE FOUG.PA

France's third-largest construction company posted slightly lower first-quarter sales as robust concessions and energy businesses offset lower revenue from public works and construction amid a weak economic climate. ID:nL5N0Y242V

K+S SDFGn.DE

The German potash miner K+S lifted its full-year sales forecast on Tuesday, citing higher volumes at its salt business. ID:nFWN0Y204W

LAGARDERE LAGA.PA

The French media group said it signed a 1.25 billion euro five-year multi-currency syndicated credit facility for "general corporate purposes", replacing a previous 1.645 billion facility signed in 2011. LAGA.PA

CARLSBERG CARLb.CO

Danish brewer Carlsberg reported on Tuesday a rise in first-quarter operating profit due to growth in beer volumes in Western Europe and Asia, and maintained its 2015 guidance. ID:nL5N0Y30HG

LAFARGE LAFP.PA

The cement maker said it noted that Holcim (SIX: HOLN ) had filed its public exchange tender offer for Lafarge with France's AMF regulator in "an important step toward the proposed merger to create LafargeHolcim". LAFP.PA

VOLKSWAGEN VOWG_p.DE

VW will break up MAN MANG.DE and transfer MAN's truck and bus businesses, as well as MAN Latin America, into VW's new Truck & Bus Holding GmbH, German daily Frankfurter Allgemeine Zeitung said. ID:nL5N0Y24M5

Separately, Formula One remains an option for Audi, the German carmaker's chief executive Rupert Stadler was quoted as saying on Monday amid speculation about a partnership with former world champions Red Bull. ID:nL3N0Y26E2

SWISS LIFE SLHN.VX

Swiss Life said premium income rose by 11 percent in the first quarter, supported by growth in its largest market Switzerland. For more, click on SLHN.VX

TELENOR TEL.OL

Norwegian mobile phone group Telenor appointed Sigve Brekke, the head of its Asian operations, to take over as chief executive from August 17, when Jon Fredrik Baksaas retires after 13 years atop the firm. ID:nL5N0Y30GO

CLARIANT CLN.VX

The company has neither received any offers of a takeover, nor has it been contacted by interested parties, its chief executive was quoted as saying by a Swiss paper on Tuesday. CLN.VX

TOTAL TOTF.PA

The French oil major signed an agreement to explore for offshore oil with Cuban state oil monopoly CubaPetroleo (Cupet), Cuban state-run television reported without giving further details. The announcement was made during a visit to the Communist-run country by French President Francois Hollande. ID:nL1N0Y301W

TECHNIP TECF.PA

The oil and gas services company said it won a contract from BP BP.L to provide production pipeline systems for the Thunder Horse project in the Gulf of Mexico. ID:nBwbC4RgFa

ANGLO AMERICAN AAL.L

Anglo American may increase capacity at its Minas-Rio iron ore mine in Brazil by nearly 10 percent, a move that could cut unit costs at the troubled $13 billion project, the company's Brazil chief executive said on Monday. ID:nL1N0Y21TN

ROYAL DUTCH SHELL RDSa.L

Royal Dutch Shell's quest to return to oil drilling in the U.S. Arctic for the first time since 2012 took a big step forward on Monday when the Obama administration approved the company's exploration plan. ID:nL1N0Y21OU

------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0521 GMT:

LAST PCT CHG

NET CHG S&P 500

.SPX

2,105.33 -0.51 %

-10.77 NIKKEI

.N225

19592.54 -0.14 %

-28.37 MSCI ASIA EX-JP

.MIAPJ0000PUS

503.65 -0.13 %

-0.66 EUR/USD

EUR=

1.1179 0.22 %

0.0025 USD/JPY

JPY=

120.24 0.14 %

0.1700 10-YR US TSY YLD

US10YT=RR

2.298

--

0.03 10-YR BUND YLD

EU10YT=RR

0.609

--

0.01 SPOT GOLD

XAU=

$1,182.86 -0.07 %

-$0.84 US CRUDE

CLc1

$59.23 -0.03 %

-0.02 > Asia stocks, euro falter as Greek crisis saps confidence MKTS/GLOB

> Wall Street ends down on global jitters; oil stocks lower .N

> Japan shares drop on earnings caution, bond volatility .T

> Wall Street ends down on global jitters; oil stocks lower US/N

> Dollar strengthens as Greek debt crisis weighs on euro FRX/

> Gold struggles below $1,200 as dollar firms GOL/

> London copper steady, overshadowed by stronger dollar MET/L

> Oil prices dip on oversupply, worries over Greece O/R

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