Europe Factors to Watch-Shares set to extend losses; eyes on ECB
PARIS, Oct 2 (Reuters) - European stocks were set to fall on Thursday, extending the previous session's sharp retreat and tracking losses on Wall Street, while investors await details on the European Central Bank's new asset-buying plan. Shares in Allianz will be in focus after the German insurer's asset management unit Pimco said it suffered a record $23.5 billion of withdrawals from its flagship Pimco Total Return Fund in September, with its largest daily outflow occurring on the day of Bill Gross's surprise resignation from the firm. At 0615 GMT, futures for Euro STOXX 50, for UK's FTSE 100, for Germany's DAX and for France's CAC were down 0.3-0.5 percent. Later on Thursday, the ECB will unveil a new asset-buying plan which it hopes will prop up inflation and revive the euro zone economy. The ECB plans to buy asset-backed securities (ABS) - packages of reparcelled loans - with a view to spurring the market for such credit and supporting lending to the small- and mid-sized firms that form the backbone of the euro zone economy. A Reuters poll on Monday showed money market traders on average expect the ECB to buy a total of 200 billion euros of ABS and covered bonds over a year. Recent sluggish economic data, including falling inflation, has also fuelled expectations that the central bank will later introduce full-blown quantitative easing (QE) and buy government bonds to stimulate the economy. BlackRock's head of European and global bonds, however, warned on Wednesday that investors loading up on some of the euro zone's riskiest government bonds on expectations that the ECB will buy them are making a mistake. Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0615 GMT: LAST PCT CHG NET CHG S&P 500 1,946.16 -1.32 % -26.13 NIKKEI 15661.99 -2.61 % -420.26 MSCI ASIA EX-JP 470.89 -0.2 % -0.93 EUR/USD 1.2632 0.07 % 0.0009 USD/JPY 108.78 -0.08 % -0.0900 10-YR US TSY YLD 2.402 -- 0.00 10-YR BUND YLD 0.899 -- -0.01 SPOT GOLD $1,218.07 0.39 % $4.68 US CRUDE $90.69 -0.04 % -0.04 > GLOBAL MARKETS-ASIA SPOOKED BY WEAK GLOBAL DATA; TOKYO STOCKS DIP > US STOCKS-WALL ST TUMBLES ON EBOLA FEARS; SMALL CAPS DROP > TOKYO'S NIKKEI SHARE AVERAGE FALLS 2.00 PCT > TREASURIES-U.S. LONGER-DATED BOND PRICES GAIN MORE ON PIMCO OUTFLOWS > YEN SQUEEZES HIGHER AS DISAPPOINTING PMIS DIM MOOD, EURO EYES ECB > PRECIOUS-GOLD GETS BOOST FROM SAFE-HAVEN BIDS AS EQUITIES SLIDE > METALS-LONDON COPPER EDGES UP AS DOLLAR RALLY PAUSES > BRENT HOVERS NEAR 27-MONTH LOW AS ABUNDANT SUPPLY WEIGHS COMPANY NEWS: ALLIANZ The German insurer's asset management unit Pimco suffered a record $23.5 billion of withdrawals from its flagship Pimco Total Return Fund in September, with its largest daily outflow occurring on the day of Bill Gross's surprise resignation from the firm. SABADELL Colombian financier Jaime Gilinski, Banco Sabadell's biggest shareholder after buying into it last year, has raised his stake in the Spanish lender from 5 percent to 7.5 percent, he told Expansion newspaper in an interview. HOCHTIEF, ACS The German building group controlled by Spain's ACS is close to the sale of its Formart real estate business, two sources familiar with the matter told Reuters on Wednesday. CARREFOUR, CASINO Leclerc, France's second-largest retailer by market share, plans to spend 1.2 billion euros to renovate its hypermarkets and beef up its click-and-collect service even as the outlook for consumer spending remains poor. The powerful rival to Carrefour and Casino said it expected tough times to last due to sluggish French consumer spending, and that it would keep its focus on low prices. ORANGE, BOUYGUES The telecom operator will offer Netflix video streaming services on its set-top boxes starting in November, Chief Executive Stephane Richard told French newspaper Le Monde. Smaller rival Bouygues also said last month it would market the service in November. SCHNEIDER ELECTRIC The French electrical equipment maker said it had finalised the sale of its sensors business to private equity firms The Carlyle Group and PAI Partners. PUBLICIS While advertisers have noticeably reduced advanced spending on TV spots this year, media companies have trained the spotlight on sports and other live programming to draw ad dollars, a top executive from French advertising group Publicis said. GTECH The Italian gaming group on Wednesday announced a plan to buy back shares for up to 9.5 percent of its capital. In a statement the group said its board had also approved its planned cross-border merger of GTECH into Georgia Worldwide plc. (Reporting by Blaise Robinson, editing by Tricia Wright)
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