European Factors to Watch-Shares seen down; focus on miners

lunes 10 de marzo de 2014 03:42 GYT

LONDON, March 10 (Reuters) - European shares are expected to extend the previous session's steep losses on Monday, with miners seen hit by weak Chinese economic data, which revived concerns about slowing growth in the country, the world's biggest consumer of industrial metals.

Investors, already jittery due to tension in Ukraine, where Russian forces seized another border post and a military airfield, faced weekend data from China showing a surprisingly sharp drop in exports, which tipped the country's trade balance into a deficit.

"The data comes on the heels of the first Chinese corporate bond default, and clearly raises questions over the health of the world's second-largest economy," Keith Bowman, equity analyst at Hargreaves Lansdown, said.

"The UK's FTSE 100 index remains particularly vulnerable, given its high weighting in global mining stocks. Germany also stands at risk, with its high volume of exports to China."

At 0723 GMT, futures for the Euro STOXX 50, Britain's FTSE 100 , Germany's DAX and France's CAC were 0.2 to 0.9 percent lower.

European basic resources stocks, which fell 3.5 percent in the previous session, are expected to see a further sell-off, tracking a steep decline of 1.3 to 2.7 percent in base metals trade figures from China.

"The negative cues seem to be stacking up. China, Ukraine and a good non-farms pointing to no slow down in (stimulus) tapering are not a conducive environment for bulls," Capital Spreads dealer Jonathan Sudaria said in a note, referring to Friday's better-than-expected U.S. jobs data.

"Supporting markets is the mentality that equities are the only game in town, so for now the 'buy the dips' strategy looks to be holding."   Continuación...