UPDATE 2-European Factors to Watch-Ukraine worries seen denting shares
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LONDON, April 25 (Reuters) - European equity futures edged lower on Friday, with worries over an escalation in tensions in Ukraine set to dent stock markets, which had been buoyed earlier this week by corporate takeover activity.
The June futures contract for the euro zone's Euro STOXX 50 index was down by 0.4 percent by 0645 GMT, while Germany's DAX futures fell 0.5 percent and France's CAC futures declined by 0.3 percent.
German bund futures opened 6 ticks higher.
Ukrainian forces killed up to five pro-Moscow rebels on Thursday and Russia launched army drills near the border in response, raising fears its troops would invade. Seven people were injured overnight at a pro-Ukrainian checkpoint near Ukraine's Black Sea port of Odessa when an explosive device blew up, local police said on Friday.
Germany's DAX and Austria's ATX equity indexes may be hit especially hard by the new tensions since German and Austrian companies are among the most exposed in Europe to Russia and Ukraine.
"I'm a seller here. The DAX has got the legs to come off down to 9,250 points," said Darren Courtney-Cook, head of trading at Central Markets Investments Management.
European stock markets had risen on Thursday, boosted by signs of a resurgence in corporate takeover activity.