European Factors to Watch-Shares to mark time; Arcelor, Telefonica in focus
LONDON May 9 (Reuters) - European stocks were seen edging lower on Friday as disappointing updates from blue chips such as telecoms operator Telefonica sobered the mood after a market rally on the previous day.
At 0634 GMT, futures for the Euro STOXX 50, Britain's FTSE 100 , Germany's DAX and France's CAC were down between 0.2 percent and 0.4 percent.
Spanish-listed Telefonica missed market expectations as it reported a 23 percent fall in net profit.
"It looks like Telefonica came in a bit weaker and we had some people going short of the Ibex (Spain's blue-chip index) as a results," Rupert Osborne, futures dealer at IG, said.
Adding to the gloom, Nordic builder Skanska saw its operating profit for the period rise less than forecast.
ArcelorMittal, the world's largest steelmaker, reported a 23 percent increase in its core earnings and said it remained cautiously optimistic about its business outlook for the remainder of the year.
The company, however, trimmed its forecast for global steel consumption on Friday as a more pronounced slowdown in China and a decline in Russia outweighed growing optimism about Europe.
A slowing economy in China has been a drag on European shares over the past few months. Data on Friday showed moderating consumer prices and persistent industrial deflation in the world's second-largest economy, bolstering market expectations that authorities will ease monetary policy or take other steps to arrest a loss of momentum in the second-largest economy.
Weakness in emerging markets has been a constant theme in what has been a lacklustre quarterly reporting season so far. Continuación...