European Factors to Watch-Global equity selloff to hit Europe
By Francesco Canepa
LONDON, April 11 (Reuters) - European stocks were seen opening lower on Friday, tracking a retreat in global equities and setting local indexes on course for their first weekly loss in a month.
Japanese shares sank to six-month lows on Friday while the U.S. Nasdaq suffered its biggest drop in 2-1/2 years the night before, heightening investor anxiety about a broader pullback after several equity indexes around the world hit multi-year-highs in recent weeks.
At 0616 GMT, futures for the Euro STOXX 50, Britain's FTSE 100 , Germany's DAX and France's CAC were down between 0.7 percent and 0.8 percent.
The euro zone Euro STOXX 50 index was set to suffer its first weekly loss in a month as it retreated from 5-1/2 year highs and "overbought" conditions hit last Friday, as shown by its seven-day Relative Strength Index, a momentum indicator.
The four European indexes were already down between 0.6 percent and 2.5 percent this week as three consecutive weekly gains, coming on top of a stellar performance in 2013, prompted investors to take some money off the table.
"There was no news catalyst for (the U.S.) sell off and the market action was orderly, steady and sustained," Jonathan Sudaria, a dealer at Capital Spreads, wrote in a trading note.
"(It was) not the kind of flash in the pan knee jerk reaction you see to a headline or economic data release, but more symptomatic of the big money deciding that this point in the market cycle is a good place to liquidate."
With recent market falls largely put down to profit taking, many analysts expected the market's uptrend to resume in the coming weeks. Continuación...