LONDON - European stock index futures pointed to a higher
start on Wednesday after falling for five straight sessions, with a rise in
crude prices seen supporting oils shares, but worries about a tough earnings
season may cap gains. At 0735 GMT, futures for the Eurostoxx 50 STXEc1, Germany's DAX FDXc1
and the French CAC 40 FCEc1 were up 0.5-0.8 percent. Financial spreadbetters
earlier called Britain's FTSE 100 .FTSE to open 26-31 points higher. The FTSEurofirst 300 .FTEU3 index of top European shares closed 1.5
percent lower at 840.36 points in the previous session, having fallen as low as
828.68 points. But Japan's Nikkei average eked out a 0.3 percent gain on Wednesday, buoyed
as exporters such as Sony Corp (6758.T) rebounded after falls the day before. "Moderate gains in Asian markets overnight look set to be the impetus for a
break today of the five day losing streak," Martin Slaney, head of derivatives
at GFT said in a note. "Saudi Arabia is talking output cuts and the miners look set for the best
start. We forecast a cautious open however due to the dampener on sentiment of
the latest banking sector job cuts." Oil shares would be in focus, with crude prices rising 3.6 percent, as OPEC
kept up its talk of production cuts and a cold snap in the United States boosted
heating oil demand. Investors braced for a European Central Bank rate decision on Thursday.
Markets expect the ECB to cut interest rates by 50 basis points from the current
2.5 percent, to help fight the economic downturn. [ECB/INT] The market would also keep an eye on U.S. retail sales data for December,
which are expected to give a grim picture of private consumption. In the U.S. market, the Dow .DJI fell for the fifth straight day on
Tuesday as investors fretted over what many expect will be a gloomy earnings
season, but the S&P 500 and Nasdaq ended higher as rising oil prices lifted
energy shares. And Citigroup Inc (C.N), once the world's largest bank, agreed to merge its
Smith Barney brokerage with Morgan Stanley's (MS.N) wealth management unit on
Tuesday, and was expected to make further asset sales to raise capital and to
isolate toxic assets from the rest of the bank. [ID:nN13422148] In the UK, the government launched a capital scheme to secure 20 billion
sterling of short-term bank lending to small businesses.
start on Wednesday after falling for five straight sessions, with a rise in
crude prices seen supporting oils shares, but worries about a tough earnings
season may cap gains. At 0735 GMT, futures for the Eurostoxx 50 STXEc1, Germany's DAX FDXc1
and the French CAC 40 FCEc1 were up 0.5-0.8 percent. Financial spreadbetters
earlier called Britain's FTSE 100 .FTSE to open 26-31 points higher. The FTSEurofirst 300 .FTEU3 index of top European shares closed 1.5
percent lower at 840.36 points in the previous session, having fallen as low as
828.68 points. But Japan's Nikkei average eked out a 0.3 percent gain on Wednesday, buoyed
as exporters such as Sony Corp (6758.T) rebounded after falls the day before. "Moderate gains in Asian markets overnight look set to be the impetus for a
break today of the five day losing streak," Martin Slaney, head of derivatives
at GFT said in a note. "Saudi Arabia is talking output cuts and the miners look set for the best
start. We forecast a cautious open however due to the dampener on sentiment of
the latest banking sector job cuts." Oil shares would be in focus, with crude prices rising 3.6 percent, as OPEC
kept up its talk of production cuts and a cold snap in the United States boosted
heating oil demand. Investors braced for a European Central Bank rate decision on Thursday.
Markets expect the ECB to cut interest rates by 50 basis points from the current
2.5 percent, to help fight the economic downturn. [ECB/INT] The market would also keep an eye on U.S. retail sales data for December,
which are expected to give a grim picture of private consumption. In the U.S. market, the Dow .DJI fell for the fifth straight day on
Tuesday as investors fretted over what many expect will be a gloomy earnings
season, but the S&P 500 and Nasdaq ended higher as rising oil prices lifted
energy shares. And Citigroup Inc (C.N), once the world's largest bank, agreed to merge its
Smith Barney brokerage with Morgan Stanley's (MS.N) wealth management unit on
Tuesday, and was expected to make further asset sales to raise capital and to
isolate toxic assets from the rest of the bank. [ID:nN13422148] In the UK, the government launched a capital scheme to secure 20 billion
sterling of short-term bank lending to small businesses.
