Europe Factors to Watch-Stocks set to drop again; Ukraine eyed
PARIS, April 14 (Reuters) - European stocks were seen falling on Monday, extending the previous session's sell-off, after further losses on Wall Street and as tensions in Ukraine flared again. At 0625 GMT, futures for the Euro STOXX 50, UK's FTSE 100, Germany's DAX and France's CAC were down 0.4 to 0.9 percent. Ukraine gave pro-Russian separatists a Monday morning deadline to disarm or face a "full-scale anti-terrorist operation" by its armed forces, raising the risk of a military confrontation with Russia, while the United Nations Security Council held an emergency session on Sunday night to discuss the crisis. "There had been hopes that the situation may have climaxed in the annexation of the Crimea, but with pockets of pro Russian support springing up all over the east, and authorities in Kiev looking like they're about to lose their patience with diplomacy, it's clear that this is only the opening chapter in what could be formative moment for geopolitical relations," Capital Spreads trader Jonathan Sudaria wrote in a note. Shares in European blue-chips exposed to Russia and Ukraine, such as Finnish tyre maker Nokian Renkaat, Austrian lender Raiffeisen Bank International and Danish brewer Carlsberg, have been underperforming in recent months, hurt by fears of an escalation in violence in the region as potential further economic sanctions imposed by the West on Russia. French bank Societe Generale late on Friday announced that it had increased its stake in Russia's Rosbank to 99.4 percent, saying the country's banking sector had strong growth potential. SocGen had exposure of 22.4 billion euros to Russia at the end of June, according to the European Banking Authority's (EBA) data. That equated to 15.7 billion euros in risk-weighted assets. Mining stocks will also be in focus on Monday after Glencore Xstrata sold its interest in the Las Bambas copper mine in Peru to a Chinese consortium in a $6 billion cash deal, making it one of China's largest mining acquisitions in recent years. On Friday, U.S. stocks sank on Friday, with the biotech and other momentum stocks again dragging the Nasdaq Composite down 1.3 percent, to close at 3,999.734 points, falling below 4,000 for the first time since early February, a pull-back fuelled by worries some stock valuations have been overstretched. For the week, the Nasdaq lost 3.1 percent, its biggest weekly decline since June 2012. In Europe, the euro zone's blue-chip Euro STOXX 50 index lost 3.5 percent last week, and tested a key support level representing its 50-day moving average, at 3,095.58 points. Breaking below the level on Monday would send a bearish technical signal. Despite the recent jitters on Wall Street and simmering tensions in Ukraine, investors continued to pour money into European equities, attracting more than $1 billion in the week ended April 9, according to EPFR Global data. Spain and Italy equity funds saw over $150 million each in net inflows in the week, although Germany and UK equity funds suffered $250 million in redemptions, EPFR data showed. Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0624 GMT: LAST PCT CHG NET CHG S&P 500 1,815.69 -0.95 % -17.39 NIKKEI 13,910.16 -0.36 % -49.89 MSCI ASIA EX-JP 480.2 -0.55 -2.67 EUR/USD 1.3841 -0.31 % -0.0043 USD/JPY 101.54 -0.05 % -0.0500 10-YR US TSY YLD 2.612 -- -0.01 10-YR BUND YLD 1.500 -- -0.01 SPOT GOLD $1,326.96 0.68 % $8.99 US CRUDE $104.11 0.36 % 0.37 > GLOBAL MARKETS-Stocks slip on Wall St gloom, Ukraine tensions > US STOCKS-Nasdaq ends below 4,000 for first time since early Feb > Nikkei slips to new 6-month low on Wall St slide, Ukraine jitters > FOREX-Euro edges back as ecb steps up verbal campaign > PRECIOUS-Palladium extends rally to near 3-year high on supply fears > METALS-Nickel hits 14-mth high on ore export ban > OIL-Brent rises, hovers near $108 as Ukraine crisis WORSENS COMPANY NEWS: GLENCORE XSTRATA The group has sold its interest in the Las Bambas copper mine in Peru to a Chinese consortium in a $6 billion cash deal, making it one of China's largest mining acquisitions in recent years. SOCIETE GENERALE France's second-largest bank said it had increased its stake in Rosbank to 99.4 percent, saying the Russian banking sector had strong growth potential. PSA PEUGEOT CITROEN SA Peugeot Citroen pledged to achieve a 2 percent automotive division operating margin in 2018 as new Chief Executive Carlos Tavares outlined a recovery plan for the struggling French carmaker on Monday. TELECOM ITALIA Egyptian billionaire Naguib Sawiris is ready to invest $1 billion to $2 billion in Telecom Italia if its biggest shareholder Telefonica pulled out from the Italian phone group, according to newspaper Il Sole 24 Ore. FIAT A change in the way it measures currency in Venezuela will cause Fiat unit Chrysler to take a $130 million charge in its first quarter, Chrysler said on Friday. ALLIANZ The world's largest insurance company plans to increase its investments in shares and infrastructure projects as it seeks higher returns amid a low interest rate environment, its chief executive told German daily Tagesspiegel in a pre-release of an interview to be published on Monday. EDF Petróleo Brasileiro SA, Brazil's state-controlled oil company known as Petrobras, agreed on Friday to sell to EDF its 10 percent stake in thermal power plant Usina Termelétrica Norte Fluminense for an undisclosed sum. VIVENDI The media group's Canal+ pay-TV unit said it won rights to continue broadcasting Champions League soccer matches for the three coming seasons through 2018. THYSSENKRUPP The German steel maker has signed a memorandum of understanding with Saab for the sale of ThyssenKrupp Marine Systems AB. VEOLIA French transport firm Transdev, a joint venture between Veolia Environnement and state-owned bank CDC, will propose a new chairman of the board for its SNCM ferry unit, a source close to Transdev told Reuters. REMY COINTREAU The drinks maker signed an amendment and extension to its 255-million-euro revolving facility with a pool of ten banks. The move provides the group with more favourable financing terms, with a borrowing cost of Euribor plus 100 basis points, compared with the previous one at 195 points. PSA PEUGEOT CITROEN The carmaker's prospects may be brightening as Europe emerges from a six-year market slump, but new boss Carlos Tavares still faces long odds as he prepares to present his recovery plan on Monday, analysts said. NESTLE The chairman of Nestle, the world's largest food group, will undergo treatment for a curable illness but this will not affect his ability to carry out his job, the company said. (Reporting by Blaise Robinson; editing by Atul Prakash)
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