European Factors to Watch-Stocks set for sharp drop after China sell-off

lunes 24 de agosto de 2015 02:20 GYT

LONDON, Aug 24 (Reuters) - European stocks were set to drop sharply at the
open on Monday, tracking Asian indexes lower and extending last week's losses as
a global equity sell-off continued.
    Asian stocks slumped to 3-year lows on Monday as a slump in Chinese equities
gathered pace, hastening an exodus from riskier assets as fears of a China-led
global economic slowdown churned world markets.    
    Stocks slid after Beijing offered no big policy move at the weekend to
support equities, as was widely expected after last week's 11 percent plunge.
    "Another strong sell-off in Asia overnight is once again spreading fear
throughout financial markets at the start of the week, piling the pressure on
the People's Bank of China to inject some stimulus into the markets stop the
rout" Craig Erlam, market analyst at OANDA, said in a note.
    Futures on the Euro STOXX 50, France's CAC, Germany's DAX
 and Britain's FTSE 100 were 3-3.5 percent lower at 0611 GMT.
    European shares suffered their largest one-day fall in nearly four years on
Friday as growing concerns over China's economy hit world markets. The
pan-European FTSEurofirst 300 index closed down 3.4 percent at 1,427.13
    The index posted its biggest weekly fall since August 2011, dropping 6.6
    Plastics business Covestro, which is being spun off by Bayer, still has
excess capacity that finance chief Frank Lutz said offers opportunities for
growth, according to an interview in Boersen-Zeitung.
    The autoparts and tyre maker, along with auto supplier Robert Bosch
, is interested in working on open standards with mapping business
HERE, which Daimler, BMW and Volkswagen's 
premium division Audi agreed to buy earlier this month, the
Automobilwoche magazine reported.
    E.ON, RWE, ENBW 
    Germany's utilities have plans to shut down a total of 57 power plants,
including gas- and coal-fired plants as well as hydroelectric plants, daily Bild
reported, citing figures from regulator Bundesnetzagentur.
    A probe by Deutsche Bank into questionable share trades involving its Moscow
unit has prompted further enquiries into whether a senior staff member took
bribes, a source familiar with the situation said on Friday. 

    Harry Hohmeister, chief executive of airline Swiss, could take up a
leadership position at German owner Lufthansa and be replaced by a Lufthansa
executive, Swiss paper NZZ am Sontag reported, citing several sources.
    The pharma firm has decided to close down Bangalore GeNei, a firm it had
bought in 2009, the Economic Times reported. 
    India's purchase of French Rafale fighter jets could be concluded in about
10 days, a source with knowledge of talks on the deal told Reuters on Friday.
    The Switzerland-based cement group said in a statement it had opened the
second kiln line of a cement plant in Tuban, Indonesia. 
    Credit Suisse started its coverage of the group with an outperform rating
and an 80 Swiss franc price target. 
    The telecoms firm is making three of its call centres legally separate
entities as part of a restructuring following the takeover of E-Plus.
    France's Areva will consider a bid for new units at the Czech Temelin
nuclear power plant if there is new tender, French Foreign Minister Laurent
Fabius said on Sunday. 
    Enel has started exclusive talks with Czech energy group Energeticky a
Prumyslovy Holding (EPH) over the sale of Slovenske Elektrarne, a Slovakian
generating company in which the Italian utility holds a 66 percent stake.
    Ferrari's Sebastian Vettel blasted the tyre supplier after a high-speed
Belgian Grand Prix blowout on Sunday that he said could have had grave
    Pirelli shareholder CAM 2012 has told holders of a 150-million euro bond
maturing in 2017 that it will reimburse it unless they exercise their right to
exchange the notes with shares in the tyre maker by Sept. 7, investor Camfin
said on Friday.
    The renewable energy company is close to sealing a deal with Italian
infrastructure fund F2i under which they would transfer solar energy assets with
an overall installed capacity of 270 megawatts to a newly-created company, Il
Sole 24 Ore said on Sunday in an unsourced report. The accord could be unveiled
in the first few weeks of September.
    CEO Mauro Moretti said on Sunday the defence group is targeting a "solid"
2015 income net of extraordinary items. He also said the French authorities
should soon clear the sale of Finmeccanica's rail business to Japan's Hitachi
    A preliminary green light from France to the sale of AnsaldoBreda and of a
40 percent stake in Ansaldo STS is expected next week, Il Sole 24 Ore said on
Saturday in an unsourced report. 
    Investor Findim Group sold its remaining stake of less than 2 percent in the
Italian phone group over the past few weeks. Corriere della Sera reported on
    Swatch plans to add to its new smartwatch range, the Swiss watchmaker's
chief executive told a newspaper in an interview published on Saturday.
    For more click on 
    The Swiss household appliance maker says profit fell by two-thirds to 10.3
million Swiss francs in the first half of 2015, down from 31.9 million in the
year-earlier period. It expects full-year operating income in line with 2014.
    For more click on 
    1230    US    National Activity Index
                                             LAST  PCT CHG    NET CHG
 S&P 500                                 1,970.89  -3.19 %     -64.84
 NIKKEI                                  18545.09  -4.58 %    -890.74
 MSCI ASIA EX-JP                            387.8  -4.83 %     -19.67
 EUR/USD                                   1.1447   0.53 %     0.0060
 USD/JPY                                   121.07  -0.77 %    -0.9400
 10-YR US TSY YLD                           2.002       --      -0.05
 10-YR BUND YLD                             0.575       --       0.01
 SPOT GOLD                              $1,158.00  -0.23 %     -$2.65
 US CRUDE                                  $39.40   -2.6 %      -1.05
  > GLOBAL MARKETS-Asia stocks slump as China falls gather pace    
  > US STOCKS-China fears hand Wall St its worst day since 2011    
  > Nikkei tumbles to 5-1/2-month low as China woes roil markets    
  > TREASURIES-Bonds prices gain on safety buying as stocks slump    
  > FOREX-Euro, yen rally as risk aversion builds, Aussie sinks    
  > PRECIOUS-Gold stands tall as China fears fuel safe-haven draw    
  > METALS-Copper, aluminium at 6-yr low on slowing Chinese growth    
  > Oil marks fresh 6-1/2-year lows on China and oversupply        

 (Reporting by Alistair Smout)