Europe Factors to Watch-Stocks set to track Wall St sell-off
PARIS, Oct 10 (Reuters) - European stocks are set to fall sharply on Friday, tracking a sell-off on Wall Street and in equity markets worldwide as mounting worries over the strength of the global economy spook investors. At 0620 GMT, futures for the Euro STOXX 50, the UK's FTSE 100 , Germany's DAX and France's CAC were down 1.0-1.2 percent. On Thursday, the Dow Jones industrial average dropped 334.97 points, or 2 percent, while the S&P 500 tumbled 2.1 percent and the Nasdaq Composite fell 2 percent. The sell-off followed weak data from Germany, Europe's biggest economy, and comments from a U.S. Federal Reserve official who suggested investors had unrealistic expectations about the Fed's eventual rate increase. On Thursday, data showed German exports in August fell the most since January 2009, and figures earlier in the week showed steep drops in industrial orders and output. "Bad economic data is now being viewed as bad, and the dovish signals from central banks are now being taken as a sign of weakness rather than a reason to ramp up equities," Jonathan Sudaria, a trader at Capital Spreads, said in a note. The FTSEurofirst 300 index of top European shares has tumbled nearly 7 percent since mid-September, falling to two-month lows. The selloff has prompted U.S.-based investors to cut their exposure to European stocks, according to data from Thomson Reuters Lipper which shows European equities suffering their biggest outflows in two months in the seven-day period ended Oct 8. A Lipper poll of 109 U.S.-domiciled funds invested in European stocks, which include exchange-traded funds' (ETFs) holdings, shows net outflows of $329 million, the biggest weekly redemptions since mid-August. Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0625 GMT: LAST PCT CHG NET CHG S&P 500 1,928.21 -2.07 % -40.68 NIKKEI 15300.55 -1.15 % -178.38 MSCI ASIA EX-JP 467.1 -1.53 % -7.24 EUR/USD 1.2698 0.06 % 0.0008 USD/JPY 107.81 -0.02 % -0.0200 10-YR US TSY YLD 2.325 -- 0.00 10-YR BUND YLD 0.910 -- 0.01 SPOT GOLD $1,223.00 -0.06 % -$0.75 US CRUDE $84.13 -1.91 % -1.64 > GLOBAL MARKETS-ASIAN SHARES, OIL PRICES TUMBLE ON GROWTH WORRIES > US STOCKS-WALL STREET SELLS OFF ON GROWTH CONCERNS; VOLATILITY PICKS UP > NIKKEI DROPS TO 2-MONTH LOW ON GLOBAL GROWTH CONCERNS > BOND YIELDS LITTLE CHANGED ON PROFIT-TAKING IN WAKE OF FED MINUTES > FOREX-DOLLAR STEADY VERSUS EURO, YEN AMID LOWER U.S. YIELDS > PRECIOUS-GOLD POISED FOR BEST WEEK SINCE JUNE ON SAFE-HAVEN DEMAND > METALS-COPPER SLIPS AS GERMANY FEEDS GLOBAL GROWTH WORRIES > BRENT SLUMPS BELOW $89 TO LOWEST SINCE 2010 AS ROUT EXTENDS COMPANY NEWS: AIRBUS, THYSSENKRUPP German industrial group ThyssenKrupp has agreed a deal with Airbus to manage the supply chain of metallic raw materials for Airbus Helicopters. RYG The Danish insurer posted third-quarter earnings slightly above expectations, and maintained its financial targets. Pretax profit in the quarter, which was negatively impacted by a large cloudburst in Copenhagen, fell to 782 million Danish crowns ($133.5 million) from 907 million crowns a year earlier. GIVAUDAN The world's biggest maker of flavours and fragrances on Friday confirmed its financial targets after strong sales in its division that makes perfumes helped third-quarter sales meet analysts' expectations. ALLIANZ The Pimco Total Return Fund, the world's largest bond fund whose long-time manager Bill Gross stunningly departed on Sept. 26, ended September with a slight reduction in U.S. government-related holdings and an increase in emerging markets investments. GRANGES The Swedish aluminium firm said the price in its initial public offering (IPO) had been set at 42.50 Swedish crowns per share ahead of its market debut on Friday, near the bottom of an initial range of 42 to 50 crowns. AREVA Standard & Poor's, which a month ago said it was considering whether to downgrade French nuclear group Areva's credit ratings by one notch into non-investment grade territory, said it had decided to leave the firm's rating unchanged. ALTICE The holding company backed by billionaire cable entrepreneur Patrick Drahi wants to enter into exclusive talks with Brazil's Oi to buy its Portuguese telecoms operation, sources familiar with the situation said. VODAFONE India's Bombay High Court has ruled in favour of Vodafone Group in a transfer pricing dispute, two television stations reported on Friday. GAMELOFT The publisher of digital and social games and Disney Interactive announced the release of a new game inspired by Disney Pixar's "Cars" franchise, called "Cars: Fast as Lightning". ENIRO The Swedish directories firm late on Thursday denied a report in daily Svenska Dagbladet which pushed down Eniro shares by a third by saying its lenders considered taking over its assets or force a share issue. Separately, business daily Dagens Industri reported that according to unnamed sources, private equity firm Triton wants to take over Eniro. The report said Triton had contacted several of Eniro's lenders over the past few weeks to discuss taking over the firm's loans. DEUTSCHE BANK Deutsche Bank's Swiss unit is working with U.S. officials as part of a crackdown on wealthy Americans evading taxes through hidden offshore accounts, a spokeswoman for the bank said on Thursday. INTERCOS Italian cosmetics company Intercos abandoned its public share offering on Thursday, blaming deteriorating financial market conditions that have forced other companies across Europe to re-think their listing plans. EXOR, FIAT Italian holding company Exor, a key investor in car maker Fiat, said it had bought back 238.6 million euros of a bond issue maturing in June 2017. (Reporting by Blaise Robinson; Editing by James Regan)
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