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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (7310)	10/16/2002 5:11:11 AM
From: 2MAR$	Respond to of 57110

European stocks -- Factors to watch on October 16 LONDON, Oct 16 (Reuters) - European blue chips were set to give up some of their recent record gains, with technology stocks seen under particular pressure after disappointing earnings from the world's biggest chip maker Intel <INTC.O> hit U.S. stock index futures. Europe's biggest chip maker STMicroelectronics <STM.PA> <STM.MI>, Infineon <IFXGn.DE> and Dutch chip gear maker ASML <ASML.AS> are among the stocks likely to be caught in the crossfire after Intel posted weaker-than-expected third quarter earnings and forecast below-consensus fourth-quarter sales. ST separately, also said it was in talks to buy Motorola's semiconductor operations, according to the Financial Times, while the chief of Infineon said it did not expect a significant pick-up in sales over the next two quarters and that it would slash investment. Also under the spotlight will be BT <BT.L> and Vodafone <VOD.L> after BT said it had agreed to sell its stake in French mobile phone affiliate Cegetel to Vodafone. Europe's telecom equipment makers will also be in focus after U.S. peer Motorola Inc. <MOT.N> hinted that it might lower its financial forecasts, while global financial news and information provider Reuters <RTR.L> is among European firms due to update the market on its earnings. Citibank in Frankfurt forecast that the DJ Euro Stoxx 50 index <.STOXX50E> will open 0.4 percent weaker at 2,474 points. Financial bookmakers in London expect Britain's FTSE 100 <.FTSE> to open about 0.5 percent weaker, with Germany's DAX index <.GDAXI> losing between 0.5 percent and one percent and France's CAC-40 <.FCHI> shedding around 0.3 percent. U.S. futures signalled a weak start to trade on Wall Street, with the Nasdaq 100 <.NDX> seen down 2.5 percent and the Dow Jones industrial average <.DJI> and S&P 500 <.SPX> falling more than one percent each. In New York on Tuesday, the Dow closed up 4.8 percent and the tech-laden Nasdaq Composite <.IXIC> ended 5.07 percent higher. Both benchmarks were up between three percent and four percent when most European markets closed. Indices in Asia struggled to make much headway after the Intel news took the gloss off Wall Street's sharp gains. In Japan, the Nikkei 225 <.N225> was up 0.22 percent in late trade. The following stocks are likely movers: BT <BT.L>, VODAFONE <VOD.L> British telecom group BT said it had agreed to sell its stake in French mobile phone affiliate Cegetel to Vodafone. INFINEON TECHNOLOGIES <IFXGn.DE>, STMICROELECTRONICS <STM.PA>, ASML <ASML.AS> Chip stocks were expected to buckle after Intel <INTC.O>, the world's largest chipmaker, posted profits that rose less than analysts had expected amid a global slump in chip demand. Intel also said capital spending for 2002 will be lower than it previously planned, while U.S. maker of chip equipment Novellus Systems Inc. <NVLS.O> said anaemic demand pushed revenue lower in the third quarter. The Financial Times also reported that Europe's biggest chipmaker STMicroelectronics was in talks to buy Motorola's semiconductor operations in a deal that would create the world's second-largest chipmaker after Intel. ST, part-owned by the French and Italian governments, denied it had held merger conversations with Motorola or any other competitor. Meanwhile, Infineon, Europe's second-largest chip maker, said late on Tuesday that it would slash investment in new factories due to poor market conditions. For related news click [INTC.O] [NVLS.O] [IFXGn.DE] [STM.PA] ERICSSON <ERICb.ST>, ALCATEL <CGEP.PA>, NOKIA <NOK1V.HE> The region's telecom equipment makers could come under pressure after U.S. peer Motorola <MOT.N> posted a third-quarter net profit but said sales were weaker than expected due to disappointing handset demand. That, together with comments by Motorola Chairman and Chief Executive Christopher Galvin about the erratic economy, suggested the company will lower its financial forecasts, analysts said. Nokia, the world's largest maker of cellphones, will report results on Thursday, and Ericsson, the world's largest maker of wireless network equipment, is due to report on Friday. For related news click [MOT.N] REUTERS <RTR.L> The global financial news and information provider is set to update the market on its third-quarter results and provide guidance for the early part of 2003. Analysts expect Reuters to report a fall of around four percent in third-quarter sales to about 880 million British pounds ($1.38 billion), largely due to a big fall in revenues at its electronic trading unit Instinet <INET.O>. Analysts expect core recurring revenues, before acquisitions, to show a year-on-year fall of six percent. Reuters' shares recently hit 12-year lows after a stream of bearish broker comment. For related news click [RTR.L] DASSAULT AVIATION <AVMD.PA> The French fighter plane maker is due to report first-half earnings, having recently waived its first right of refusal to buy shares owned by telecom gear maker Alcatel <CGEP.PA> in defence electronics group Thales <TCFP.PA>. For related news click [AVMD.PA] MEDIOLANUM <MED.MI> The Italian asset manager and a member of Milan's Mib-30 <.MIB30> blue-chip benchmark reports third-quarter earnings, having seen investors pull out money over the period, in line with falling equity markets. For related news click [MED.MI] INFICON HOLDING <IFCZn.S> <IFCN.O> The Swiss-listed and U.S.-based vaccuum technology group, which counts the global chip making industry among its key clients, reports third-quarter earnings. For related news click [IFCZn.S] ECONOMIC DATA The economic diary is relatively sparse, with UK unemployment and average earnings data due at 0830 GMT and October's U.S. Empire State manufacturing survey due at 1200 GMT. The main standout is September's consumer inflation report for the 12-nation euro zone, which is seen rising to 2.2 percent from 2.1 percent year on year. ((William Kemble-Diaz, European Stock Markets team +44 20 7542 5228, fax +44 20 7542 3722, william.kemble-diaz@reuters.com)) REUTERS * end of story *