European Factors to Watch-Shares seen higher after Yellen comments

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  • Stock Market News
European Factors to Watch-Shares seen higher after Yellen comments
Credit: © Reuters.

(ADVISORY- Reuters plans to replace intra-day European and UK
stock market reports with a Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets
for site in development. See the bottom of the report)
LONDON, June 7 (Reuters) - European shares headed for a
broadly higher open on Tuesday, mirroring gains on Wall Street
and in Asia after Federal Reserve Chair Janet Yellen dropped a
reference to the timing of any increase in U.S. interest rates
in her latest speech.
Yellen's remarks, which were likely her last public comments
before a policy meeting next week, followed Friday's dismal
monthly jobs report, which raised concerns over the ability of
the economy to absorb a rate hike as early as June. Yellen
called the jobs report "disappointing," but said "one should not
attach too much significance to a single report."
Futures for the Euro STOXX 50 STXEc1 , Germany's
DAX FDXc1 and France's CAC FCEc1 were 0.4 to 0.5 percent
higher. However, futures for Britain's commodity-heavy
FTSE index FFIc1 were up only 0.1 percent following a retreat
in metals prices after a jump in the previous session.
European stocks edged up on Monday, helped by gains in major
mining and oil company shares following weakness in the dollar
prompted by Friday's weak U.S. jobs data. The pan-European STOXX
600 .STOXX and the FTSEurofirst 300 .FTEU3 equity indexes
rose 0.3 and 0.4 percent respectively.
In the United States, the S&P 500 index .SPX closed at a
7-month high on Monday, while MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS rose more than
1 percent on Tuesday as investors judged the Fed's cautious
stance as well-suited to equities.
On the macroeconomic front, German industrial output rose
slightly more than expected in April, suggesting that the motor
of Europe's largest economy was humming along at the start of
the second quarter. NEWS
The oil major said it would sell up to 10 percent of its oil
and gas production, leaving up to 10 countries to cut costs
following its $54 billion acquisition of BG Group. Shell said it
would maintain annual spending below $30 billion until the end
of the decade and cut its planned 2016 capex for a third time to
$29 billion, down from an initial $35 billion. BMWG.DE VOWG_p.DE DAIGn.DE
Germany wants stricter European Union rules on emissions
from motor vehicles, the transport ministry said on Monday,
confirming a report by the financial daily Handelsblatt.
BASF said on Monday it would refrain for now from building a
propylene plant in Texas because of volatile commodity prices, a
sign that an aggressive U.S. Gulf Coast petrochemical building
boom announced earlier this decade could be cooling.
Daimler AG announced 1,240 layoffs at three plants in the
U.S. and one in Mexico at its truck division. ACCP.PA
Europe's largest hotel group, which wants to limit a push by
Chinese shareholder Jin Jiang to increase its stake, should
maintain a diverse group of shareholders, French President
Francois Hollande said. BANK DBKGn.DE
Thebank is discarding plans to set up a new digital banking
service in the United States for fear of the move hampering a
sweeping overhaul aimed at restoring the lender's fortunes after
a damaging string of financial scandals. ENGIE.PA
The Brazilian unit of the French utility company is looking
to sell its natural gas blocks in Brazil's Bahia and Maranhao
states as part of a global strategy to focus on renewable energy
resources, the division's chief executive said. TOTF.PA
Preliminary work got underway on Monday to restart three of
Total's French oil refineries stopped as part of nationwide
strikes against planned changes to employment laws, but workers
were still on strike at the country's two main oil ports.

A U.S. judge on Monday said Glencore Plc GLEN.L must face
a private antitrust lawsuit accused it of trying to monopolize
the market for special high-grade zinc, driving up its price.
The Italian asset manager said on Monday its total net
inflows were 433 million euros ($492 million) in May.
Standard & Poor's said it revised UBS Group AG rating to
'A-' from 'BBB+', outlook revised to 'stable' from 'positive'

Pharmaceutical companies Roche and OSI Pharmaceuticals LLC
will pay $67 million to resolve allegations they made misleading
statements about the effectiveness of lung cancer drug Tarceva,
the U.S. Justice Department said on Monday. HOLDING SCHP.S
The world's No. 3 elevator maker will initially acquire a 25
percent equity stake in Volkslift Elevator (China) Co. Ltd. with
options to purchase remaining shares. A price for the
transaction in China, the world's biggest lifts market, was not
Norwegian oil firm Det norske said the giant Johan Sverdrup
oilfield in the North Sea could produce more oil than earlier
projected and would cost less to develop, confirming estimates
by fellow partner partner Lundin Petroleum LUPE.ST of Sweden.

Oil and gas explorer Ophir Energy Plc OPHR.L said on
Monday it was talking to a range of equity investors, as well as
gas buyers to help finance its Fortuna FLNG project in
Equatorial Guinea, after Schlumberger SLB.N walked
away. DIRECT
Mike Ashley, the billionaire founder of Sports Direct
SPD.L , is set to face tough questions from British lawmakers
on Tuesday over working practices at his sportswear firm.
Reuters plans to replace intra-day European and UK
stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets
for site in development). In a real-time, multimedia format
from 0600 London time through the 1630 closing bell, it will
include the best of our market reporting, Stocks Buzz service,
Eikon graphics, Reuters pictures, eye-catching research and
market zeitgeist. Breaking news and dramatic market moves will
continue to be alerted to all clients and we will continue to
provide a short opening story and comprehensive closing reports.
If you have any thoughts, suggestions or feedback on this,
please email
Mike Dolan, Markets Editor EMEA.

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