European Factors-Shares set to recover from rough ride
LONDON, Sept 2 (Reuters) - European shares were set for a positive open on Wednesday, staging a slight recovery from a rough start to the week, with traders pointing to more intervention in China to calm jittery markets even as Asian shares fell for a third day in a row.
Despite pledges by a number of brokerages to increase their stock investments to support the Chinese market, China's major stock indexes extended losses on Wednesday.
EuroSTOXX 50 futures were up 0.7 percent, German DAX futures were up 0.7 percent and French CAC 40 futures were up 0.4 percent at 0621 GMT.
Any respite would come after heavy selling and a surge in volatility. European equities are down 3 percent this week as weak manufacturing reports from China, the U.S. and Europe fuel worries about slowing global growth.
That in turn has clouded market expectations of the next move for the world's central banks. Bets that the U.S. Federal Reserve could raise interest rates as early as this month have been scaled back.
While stock-market volatility has eased slightly from last week's turmoil, which saw some markets drop as much as 8 percent before snapping back in the space of a few days, it remains above trading levels seen for most of 2014 and 2015.
Despite the jitters, deal-making remains very much alive. UK retailer Tesco has picked private-equity firm MBK Partners as preferred bidder to buy its South Korean unit, according to sources. Meanwhile, online gambling company GVC Holdings said it could go hostile in the 1-billion-pound ($1.5 billion) battle for Bwin, the Times newspaper reported.
General Electric is also expected to receive the green light to buy Alstom's energy business in the coming days, the Financial Times reported, citing people close to the deal.