UK Market News

Wednesday August 5, 08:07 AM
Glance-European Factors -- Shares set for lower open; earnings eyed

LONDON, Aug 5 (Reuters) - European shares were set for a slightly lower open on Wednesday, tracking a fall in Asia, and as investors digest another batch of earnings, including those from French banking giant Societe Generale (Paris: FR0000130809 - news) and insurer Axa (Paris: FR0000120628 - news) . At 0647 GMT, DJ Euro Stoxx futures were down 0.2 percent, Germany's DAX (Xetra: news) futures were down 0.4 percent and France's CAC-40 futures were down 0.2 percent. On Tuesday, the FTSEurofirst 300 index of top European shares fell 0.2 percent to close at 939.67 points, having hit a nine-month closing high in the previous session. The European benchmark index is still up more than 45 percent from its lifetime low of March 9, as investors have become more confident on the prospects of recovery, and as the current earnings season has boosted optimism. Axa will be in focus after reporting a 39 percent fall in first-half net profit. Other companies reporting on Wednesday include Societe Generale. Later in the session, investors' attention will turn to durable goods data in the United States. Japan's Nikkei 225 (news) closed 1.2 percent lower on Wednesday, sliping back from a 10-month high. ----------------------MARKET SNAPSHOT AT 0631 GMT------------------------- LAST PCT CHG NET CHG S&P 500 1,005.65 0.3 % 3.02 NIKKEI 10,252.53 -1.18 % -122.48 MSCI ASIA EX-JP 433.48 -0.90 % -3.92 EUR/USD 1.4387 -0.03 % -0.00004 USD/JPY 94.98 -0.28 % -0.2700 10-YR US TSY YLD 3.675 -- -0.01 10-YR BUND YLD 3.342 -- -0.01 SPOT GOLD $963.10 -0.38 % -$3.65 US CRUDE $71.28 -0.21 % -0.15 -------------------------------------------------------------------------- * US STOCKS-Data helps extend Wall St rally * TREASURIES-Prices retreat as house data suggests recovery * NYMEX-Crude rises after surprise API stock draw * Nikkei flat after 10-mth closing high, Toyota slips * GLOBAL MARKETS-Asian stocks flat * PRECIOUS-Gold steadies below 2-month high * Dollar near 2009 lows, kiwi touches 10-mth high * METALS-Shanghai copper up 2 pct, buoyed by econ hopes SOCIETE GENERALE The French bank posted a 52 percent slump in second-quarter profit on Wednesday as charges for bad debts and risky assets hit earnings, yet the profits did not fall as much as many had feared. AXA The French insurer posted a 39 percent lower first half net profit at 1.32 billion euros. AXA did not expect it needed to raise capital this year and said it was prepared to withstand a further possible market downturn. LLOYDS Britain's Lloyds Banking Group (LSE: LLOY.L - news) sank to a 4 billion pound ($6.8 billion) loss in the first-half of the year hit by a surge in bad debts from the HBOS business it bought earlier this year. CARLSBERG Danish brewer Carlsberg (Copenhagen: CARL-B.CO - news) reported a forecast-beating rise in operating profits for the second quarter and said its Russian, East European and Asian businesses gained market share. Earnings before interest and tax (EBIT) rose to nearly 3.66 billion Danish crowns ($707.5 million) in April-June from 3.15 billion in the same quarter last year. SWISS RE (Virt-X: RUKN.VX - news) Swiss Re posted a surprise net loss on Wednesday as hedges on corporate bonds backfired and it was forced to take charges on securitised products and its own credit spreads. OMV Austrian oil and gas group OMV (Vienna: 430021.VI - news) is in talks to buy a $1.2 billion stake in Turkish fuel retailer Petrol Ofisi, OMV and Petrol's majority owner Dogan Holding said on Wednesday. OMV also announced that second-quarter earnings before interest and tax dropped 83 percent to 151 million euros ($217 million) after stripping off one-off item and inventory holding effects as a sharp drop in margins drove its downstream business into a loss. STANDARD LIFE (LSE: SL.L - news) British life insurer Standard Life reported a 35 percent drop in its half-year profit, blaming weaker sales and falling asset values, and said market conditions remained 'challenging.' ADIDAS (Xetra: 500340 - news) Adidas, the world's second-largest sports goods maker after Nike , said it has left the worst behind after it reported better-than-expected second-quarter results on Wednesday and kept its 2009 outlook. Adidas posted a 65.5 percent drop in second-quarter operating profit to 72 million euros ($103.6 million), beating the average estimate of 39 million euros in a Reuters poll of analysts. DEUTSCHE BOERSE (Xetra: 581005 - news) The operator of the Frankfurt stock market and derivatives exchanges reported a 34 percent fall in second-quarter operating profit to 248.8 million euros ($356.9 million), well below the average of 281 million euros in a Reuters poll of analysts. Group revenue also missed expectations, falling 12 percent to 515.6 million. Related news OLD MUTUAL (LSE: OML.L - news) Financialservices company Old Mutual said first-half operating profit fell to 538 million pounds, from 773 million a year ago. DAIMLER (Xetra: 710000 - news) Creditors of Chrysler have asked a U.S. bankruptcy court to allow them to sue Daimler AG, arguing that the 2007 sale of the U.S. automaker stripped it of its most valuable assets. Related news HENKEL (Xetra: 604840 - news) Henkel said it expects its adhesives business to remain at least stable after the division's sales decline slowed in the second quarter. The maker of detergents, Loctite glues and Schwarzkopf hair products posted second-quarter adjusted earnings before interest and tax (EBIT) of 308 million euros ($443.2 million), compared with 372 million euros in the year-earlier period. CEPSA (Madrid: CEP.MC - news) Spanish oil group Cepsa said first half adjusted net profit, excluding inventories, slipped 14 percent from a year earlier to 123 million euros ($177 million). (Reporting by Brian Gorman) Keywords: MARKETS EUROPE FACTORS