European Factors to Watch-Equity futures rise to claw back some ground after sell-off
(Adds more from Goldman Sachs note)
LONDON Aug 25 (Reuters) - European equity futures rose on Tuesday to recover slightly from a sharp sell-off in the previous session that led to nearly 450 billion euros ($519.89 billion) wiped off the region's top shares.
Futures on the euro zone's blue-chip Euro STOXX 50 index rose 1.3 percent while futures on Germany's DAX also advanced 1.6 percent. Britain's FTSE 100 futures rose 0.9 percent while France's CAC futures climbed by 1.4 percent.
The FTSE and DAX had both fallen 4.7 percent on Monday, while the pan-European FTSEurofirst 300 index slumped 5.4 percent, with roughly 450 billion euros wiped off the total market capitalisation of the FTSEurofirst in its worst daily closing performance since November 2008.
World financial markets have been rattled in recent weeks by China's devaluation of its yuan currency and by a sell-off in the Chinese stock market.
Chinese shares slumped again on Tuesday, but other Asian stock markets recovered ground.
The leaders of Germany and France also voiced confidence on Monday that China would take the necessary steps to stabilise its economy, while analysts at Goldman Sachs also expected the global economy to be able to withstand the knock-on effects from the Chinese market slump.
"While there may be risks to the downside based on confidence effects, and while inflation may be lower as a result, we remain of the view that a global recession is very unlikely," Goldman Sachs wrote in a note.
However, Goldman Sachs cut its short-term outlook for global stock markets. The U.S. bank cut its three-month position on European equities to "neutral" from "overweight" and also reduced its three-month targets on the STOXX 600 , Euro STOXX 50 and FTSE 100 indexes. Continuación...