European Factors to Watch-Shares set to fall sharply after China factory contraction
LONDON Aug 21 (Reuters) - European stock futures fell sharply on Friday, tracking a fall in Asian equity markets and U.S. stock futures, after a survey showed Chinese factories contracted at their fastest pace since the depth of the global financial crisis in 2009.
Futures on the Euro STOXX 50, Germany's DAX, France's CAC and Britain's FTSE were 1.5-2.1 percent lower at 0611 GMT.
The Caixin/Markit manufacturing index showed activity in China's factory sector shrank at its fastest pace in almost 6-1/2 years in August as domestic and export demand dwindled. Coming on the heels of weaker-than-expected data in July, it stoked fears of a slowdown in the world's second-biggest economy.
U.S. stock futures fell to a 6 month low after the survey, while Japan's Nikkei stock index fell 3 percent.
The pan-European FTSEurofirst 300 closed near its lowest level since February on Thursday, and is down over 7 percent since China devalued its currency last week.
"Global markets are in panic mode as the full scale of China's slowdown becomes clearer," Angus Nicholson, market analyst at IG, said in a note.
"The word on everyone's lips is deflation - poison for equity markets. The phenomenal six-year bull market may finally meet its match in China-induced global deflation."
In the euro zone, Greek Prime Minister Alexis Tsipras resigned on Thursday, hoping to strengthen his hold on power in snap elections after seven months in office in which he fought Greece's creditors for a better bailout deal but had to cave in.
Morale among German consumers declined going into September for the first time in six months and fell short of expectations amid concern about economic developments abroad, market research group GfK said. Continuación...