(updates indicators, adds company news)
FRANKFURT, Jan 23 (Reuters) - European stocks looked set to open mixed with
an upward bias on Wednesday after the previous session's relief rally triggered
by the U.S. Federal Reserve's surprise 75-basis-point key rate cut.
"Many traders will be looking for a degree of calm...There still has to be
the chance that nerves could get the better of investors and another run of
selling may be seen, but there does now have to be the scope to let the focus
return to the fundamentals," CMC Markets said in a note.
Morgan Stanley said the MSCI Europe index's 20 percent drop from the peak
reached in June 2007 looked like enough of a correction, for now.
"With our key market timing indicators also giving us a buy signal and the
Fed stepping up the pace of monetary easing, we believe that the risk reward
profile for equities is now favourable," Morgan Stanley said in a European
equity strategy note.
Financial bookmakers, or spread betters, in London expected Britain's FTSE
100 <> index to open between 12 and 20 points higher and the German DAX
<> 4 to 20 points higher.
But the French CAC 40 <> was seen opening between 6 points lower and 11
points higher.
The International Monetary Fund said on Tuesday that a "significant" slowing
in the pace of 2008 global economic growth appears inevitable and that restoring
world financial markets was going to be a complex and protracted task.
Wednesday's European corporate diary includes French retailer Carrefour's
<CARR.PA> full-year sales update. Eyes will also be on European Central Bank
President Jean-Claude Trichet, who is scheduled to speak at 0810 GMT an economic
policy conference, and at the World Economic Forum which begins in Davos.
On Tuesday, financials led a rally in European shares as the Fed's rate cut
turned widespread losses into gains. The FTSEurofirst 300 index <> ended
1.9 percent up at 1,304.37 points, snapping a five-day losing streak.
----------------------MARKET SNAPSHOT AT 0655 GMT----------------------
LAST PCT CHG NET CHG
S&P 500 <.SPX> 1,310.50 -1.11 % -14.69
NIKKEI <> 12,829.06 2.04 % 256.01
MSCI ASIA EX-JP <.MIASJ0000PUS> 526.19 3.58 % 18.18
EUR/USD <EUR=> 1.4644 0.11 % 0.0016
USD/JPY <JPY=> 106.34 -0.09 % 0.1000
10-YR US TSY YLD <US10YT=RR> 3.431 -- 0.01
10-YR BUND YLD <EU10YT=RR> 3.980 -- 0.00
SPOT GOLD <XAU=> $888.00 -0.26 % -$2.30
BRENT CRUDE <LCOc1> $87.94 -0.26 % -$0.5
-----------------------------------------------------------------------
* Stocks cheer steep Fed cut, but lose altitude []
* Nikkei gains 2 pct after Fed cut but worries remain []
* Recession fears hit Wall St but Fed cut helps []
* Gold struggles to hold gains, off 3-week low []
* Yen stumbles after Fed cut boosts Asian stocks []
* US Treasuries supported in Asia as S&P futures dip []
* Oil hovers around $89 after Fed cut halts slide []
UBS <UBSN.VX>
The head of Switzerland's Federal Banking Commission was quoted as saying he
backed a planned capital injection by UBS and that the Swiss bank would not end
up with more capital than it needed as a result.
VODAFONE <VOD.L>
Vodafone is coming closer to an agreement to buy German railway operator
Deutsche Bahn's 18-percent stake in Vodafone's German fixed-line unit, Arcor,
the Financial Times Deutschland newspaper reported without citing sources.
DEUTSCHE BANK <DBKGn.DE>
A group of about 40,000 small investors may bring a class action against
four banks, including Deutsche, charged with market-rigging which led to the
collapse of Italian dairy group Parmalat. []
SWISS RE <RUKN.VX>
Swiss Re said on Wednesday Berkshire Hathaway had acquired a 3 percent stake
in its shares. Swiss Re said it now targets a total buy-back, including shares
already re-purchased, of up to 7.75 billion Swiss francs ($7.03 billion).
INTESA SANPAOLO <ISP.MI>, GENERALI <GASI.MI>
The bank is considering selling its Fideuram asset management unit to
insurer Generali in return for cash and control of an insurance joint venture, a
source close to the situation said. []
UNICREDIT <CRDI.MI>, CNP ASSURANCES <CNPP.PA>
UniCredit and the French insurer finalised changes to their bancassurance
deal, with CNP Assurances keeping its exclusive distribution rights to the Banca
di Roma and Banco di Sicilia networks and new products on offer from January
2008.
BHP BILLITON <BLT.L>
BHP Billiton, looking to win support for a takeover of rival Rio Tinto
<RIO.L>, said growth in production of key commodities such as copper and iron
ore accelerated in the three months to December. []
RICHEMONT <CFR.VX>
The world's second-largest luxury goods group narrowly missed forecasts with
an 8 percent increase in third-quarter sales, saying demand "slowed somewhat" in
Japan and the United States in December.
SCOTTISH & NEWCASTLE <SCTN.L>
Carlsberg <CARLb.CO> and Heineken <HEIN.AS> are thought to have run into due
diligence problems as they pore over Scottish & Newcastle books before making a
formal takeover offer of 800 pence per share, the Financial Times said.
SIEMENS <SIEGn.DE>
Siemens plans to expand its range of alternative energy products, aiming to
benefit from growing demand for green power, Germany's manager magazin reported.
COLONIAL <COL.MC>
Spanish property firm Inmobiliaria Colonial's board will meet on Wednesday
to consider an unsolicited bid approach from GE Real Estate Iberia, a unit of GE
<GE.N>. []
LAND SECURITIES <LAND.L>
Land Securities is poised to re-enter the investment market with a war chest
of 500 million pounds to exploit the savage drop in the price of property over
the past six months, the Financial Times said. Separately, the Daily Telegraph
said Land Securities has raised the "For Sale" sign on its Trillium outsourcing
business just two months after it unveiled plans to break into three separate
companies.
LONZA <LONN.VX>
Full-year net profit at the Swiss drugs industry supplier rose by 51 percent
to 301 million Swiss francs ($273.1 million) boosted by strong growth in
biopharmaceuticals, beating forecasts.
(Reporting by Peter Starck)
