News Column

European Markets Indicated To Open Higher

August 29, 2014

PARIS (Alliance News) - The European markets are poised for a slightly higher open on Friday, after the previous session's decline amid escalating tensions between Ukraine and Russia.

The DAX futures are gaining 26 points, the CAC 40 futures are up 8 points and the FTSE 100 futures are rising 2.5 points. The Swiss Market Index futures are up 13 points.

The European markets closed lower on Thursday, amid tensions related to Ukraine and weak data. The DAX lost 1.12%, and the CAC 40 closed down around 0.7%. The FTSE 100 index fell 0.36%, while the Swiss Market index dropped 0.55%.

On the economic front, German retail sales declined unexpectedly in July from June, provisional data showed. The retail turnover declined by real 1.4% month-on-month in July, reversing the 1% increase in June, Destatis said. Economists had forecast a 0.1% rise for July.

Meanwhile, Germany's unemployment increased unexpectedly in August as worsening economic activity weighed on job creation. In addition, consumer price inflation, at a four-and-a-half-year low, boosted the scope for more stimulus from the European Central Bank.

Eurozone unemployment and flash consumer prices are some of the important data that could affect sentiment later in the session.

On the corporate front, British super market chain Tesco revised its full year outlook. The retailer will cut its interim dividend and reduce capex.

Deutsche Telekom AG is willing to negotiate a sale of its T-Mobile US Inc. unit for an offer of USD35 per share or more, Bloomberg reported, quoting a person with knowledge of the matter.

European oil giant Royal Dutch Shell PLC. submitted a revised plan to the US government to drill in the Arctic Ocean, off the coast of Alaska, the Financial Times said.

Barclays PLC. committed USD275 million in financing to Detroit to exit from its bankruptcy after it gets court approval for its debt reduction plans at a trial beginning next week.

French pharmaceutical firm Ipsen S.A. said its first-half net profit attributable to shareholders of the company increased to 104.0 million euros from 96.2 million euros last year.

HermÈs International reported first-half consolidated net income of 413 million euros, an 8% rise over prior year. Revenue was up 12% at constant exchange rates.

The Asian markets are mostly lower, tracking the negative lead overnight from Wall Street amid worries about the escalating tensions between Ukraine and Russia.

The US futures indicate a slightly higher open on Wall Street. In the previous session, the Dow and the Nasdaq closed down 0.3% each, while the S&P 500 lost 0.2%.

Among commodities, crude for October delivery is rising USD0.25 to USD94.80 per barrel while gold is losing USD0.8 to USD1289.6 a troy ounce.

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Source: Alliance News

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