European Factors-Stocks set to end rollercoaster week with gains
LONDON Aug 28 (Reuters) - European equity futures pointed to a marginally higher open for stock markets on Friday, capping a whirlwind week for global markets that saw Europe entirely recover from a bruising 8 percent correction driven by worries over China's economic slowdown.
EuroSTOXX 50 futures were up 0.2 percent, German DAX futures were up 0.1 percent and French CAC 40 were up 0.3 percent.
Even with the FTSEurofirst 300 index squarely back to where it was before Friday's close, traders say expectations are for more gains. While there is still plenty of uncertainty over China's outlook and the exact timing of a well-flagged U.S. interest-rate hike, global central bankers have pledged to act if needed and the sell-off has created perceived pockets of value.
However, others warned that the corporate earnings outlook had deteriorated.
"(We) remain constructive on equities," Credit Suisse strategists wrote in a note to clients. "We see global growth modestly accelerating...Moreover, further slowdown in China would, in our view, result in more monetary easing globally.
"The bad news we have revised down our earnings-per-share forecasts for 2015 and 2016 to 7 percent below consensus in Europe for 2015 and 4 percent below consensus in the U.S. for 2016."
There is a growing chance the European Central Bank may extend its stimulus programme beyond September 2016, owing to concerns a sharp fall in commodity prices and a recent rally in the euro will keep inflation subdued, a Reuters poll showed.
While oil prices have staged a strong rebound in the wake of this week's volatility, Total Chief Executive Patrick Pouyanne said he expected prices to remain low for a while as supply would remain strong.
On the earnings front, advertising agency Havas saw 5.5 percent growth in like-for-like sales in the second quarter driven by North America and Europe, outpacing larger rivals like WPP and Publicis. Continuación...