Europe Factors to Watch-Stocks set to extend sell-off
PARIS, Oct 17 (Reuters) - European stocks were set to fall on Friday, extending the week's sharp losses on mounting worries over the outlook for the global economy which has prompted investors to cut their exposure to equities. The month-long sell-off has prompted U.S.-based investors to slash their exposure to Europe, according to data from Thomson Reuters Lipper. A Lipper poll of 109 U.S.-domiciled funds invested in European stocks, which include exchange-traded funds' (ETFs) holdings, shows net outflows of $1.3 billion in the seven days to Oct 15, the biggest weekly redemptions since Lipper started to monitor the data in 1992. The FTSEurofirst 300 index of top European shares has tumbled 3.7 percent this week, set to record its fourth straight weekly losses, its longest streak of weekly losses since mid-2013, as mounting worries over the pace of global growth has prompted investors to slash exposure to risky assets such as equities. The benchmark index has lost 11.7 percent since mid-September, and is down 5.4 percent year-to-date. Mining shares will be in focus on Friday after embattled iron-ore miner London Mining said its board had decided to place the company into administration. Iron ore prices have fallen 40 percent this year as big, low-cost suppliers boosted output at a time of slower demand growth from top buyer China. Industrials stocks will also be in the spotlight after British engineer Rolls-Royce warned that it would not return to growth next year, having previously said that it would, as economic conditions have deteriorated and customers were delaying decisions. At 0637 GMT, futures for Euro STOXX 50, for UK's FTSE 100, for Germany's DAX and for France's CAC were down 0.2-0.4 percent. The retreat in stock index futures was limited, however, after the S&P 500 and Nasdaq ended mostly flat on Thursday, reversing early losses after data showed initial jobless claims fell to their lowest level in 14 years, and industrial output rose sharply in September. Also providing some support, St. Louis Federal Reserve Bank President James Bullard told Bloomberg Television the U.S. central bank may want to keep up its bond buying stimulus for now given a drop in inflation expectations. Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0638 GMT: LAST PCT CHG NET CHG S&P 500 1,862.76 0.01 % 0.27 NIKKEI 14532.51 -1.4 % -205.87 MSCI ASIA EX-JP 462.66 -0.06 % -0.3 EUR/USD 1.2801 -0.05 % -0.0006 USD/JPY 106.22 -0.09 % -0.1000 10-YR US TSY YLD 2.132 -- -0.02 10-YR BUND YLD 0.820 -- 0.00 SPOT GOLD $1,239.40 0.06 % $0.70 US CRUDE $82.74 0.05 % 0.04 > GLOBAL MARKETS-ASIA STOCKS REGAIN POISE AS US DATA CALM NERVES > US STOCKS-S&P 500, NASDAQ END HIGHER WITH ENERGY; DOW DOWN 6TH DAY > NIKKEI FAILS TO ARREST SLIDE AS ECONOMIC WORRIES OFFSET US RELIEF > TREASURIES-YIELDS RISE ON PROFIT-TAKING, STEADYING WALL ST > FOREX-YEN STEPS BACK AS SOME EDGE COMES OFF GROWTH JITTERS > PRECIOUS-GOLD SET TO POST SECOND WEEKLY GAIN ON SAFE-HAVEN DEMAND > METALS-LONDON COPPER EDGES UP AS U.S. JOBS DATA CALMS GROWTH FEARS > BRENT CRUDE RALLIES ABOVE $86 BUT HEADS FOR 4TH WEEKLY LOSS COMPANY NEWS: GERMAN BANKS The prospects of HSH NORDBANK, IKB, Muenchener Hyp and another German bank to pass the European Central Bank's stress test are uncertain, Handelsblatt said on Friday. LONDON MINING Embattled West African iron-ore miner said on Thursday that its board had decided to place the company into administration. ROLLS-ROYCE The British engineer warned that it would not return to growth next year, having previously said that it would, as economic conditions have deteriorated and customers were delaying decisions. TELIASONERA The telecom operator affirmed its 2014 forecasts on Friday as it reported third-quarter core profit just above market expectations helped by markets outside its Swedish home turf where the corporate segment remained a drag. CREDIT SUISSE The lender on Friday shuffled managers at its investment banking division, promoting two American investment bankers to head up the unit alongside fixed income banker Gael de Boissard. AIR FRANCE Air France and its main pilots' union SNPL said on Thursday they reached a tentative deal aimed at ending a dispute over the airline's low cost unit Transavia France, sending shares in the airline up 6 percent. UNICREDIT Any individual problems for Italian lenders that may be uncovered in a pan-European banking asset review will not pose a systemic risk for Italy, Federico Ghizzoni, the chief executive of UniCredit, Italy's biggest bank by assets, said on Thursday. BANCA MONTE DEI PASCHI DI SIENA Italy's market regulator Consob has decided to ban short selling in shares of Banca Monte dei Paschi di Siena during the Friday session after heavy losses on Thursday breached a 10 percent threshold. ENEL Slovak Economy Minister Pavol Pavlis said he would seek to persuade the government to buy a stake in Slovenske Elektrarne, the country's leading power utility, from Italy's Enel to gain control and improve energy security. ACCOR Europe's largest hotel group Accor said on Thursday sales growth accelerated in the third quarter as demand for hotel rooms improved slightly in France while Southern Europe continued to recover. FAURECIA French auto parts supplier Faurecia said third-quarter revenue rose 6.5 percent on a rebound in U.S. sales and a tentative recovery in Europe's vehicle market. ORANGE French telecoms group Orange has lowered the threshold of shareholder backing it needs in order for its 3.4 billion euro (4.36 billion US dollar) offer to buy Spanish operator Jazztel JAZ.MC to go through, it said in a statement. GDF SUEZ The company's board will next week consider a proposal that Chief Financial Officer Isabelle Kocher take up a role as number-two at the French utility, a newspaper reported on Friday, a move that could put her in line to be its new boss. DANONE Nearly five years after it broke up with Britannia Industries Ltd, the French food and beverage maker is looking to part ways with its current joint venture (JV) partner, the Rahul Narang Group, two people familiar with the development said. CHRISTIAN DIOR GROUP Christian Dior Group, which owns 47 percent in French luxury groups LVMH , said revenues at Christian Dior Couture division rose 13 percent at actual exchange rates to 417 million euros over the period from July 1 to September 30. GECINA Gecina said Standard and Poor's rating agency raised the credit rating for the French builder by one notch to 'BBB+', assigning a stable outlook. VIVENDI CANAL + Vivendi's Canal+ and media holding ITI said on Thursday they would "review options" regarding their 51-percent stake in Polish broadcaster TVN following interest from potential buyers. (Reporting by Blaise Robinson; Editing by Atul Prakash)
© Thomson Reuters 2016 All rights reserved.