Europe Factors to Watch-Shares set to fall after Japan GDP data
PARIS Nov 17 (Reuters) - European stocks were set to fall on Monday, hit by worries over the pace of global growth after data showed Japan, the world's third-largest economy, slipped into recession.
At 0722 GMT, futures for Euro STOXX 50, for Germany's DAX and for France's CAC were down 0.7-0.8 percent.
Japan's gross domestic product (GDP) fell at an annualised rate of 1.6 percent in July-September after dropping 7.3 percent in the second quarter following a rise in the national sales tax, which clobbered consumer spending.
The country's economy had been expected to rebound by 2.1 percent in the third quarter, but consumption and exports remained weak, saddling companies with huge inventories to work off.
Tokyo's Nikkei index tumbled 3 percent on Monday, suffering its biggest one-day slump since August.
"The theory heading into the data was that a weaker-than-expected reading would see (Prime Minister Shinzo) Abe delay the sales tax hike by around 18 months and call a snap election," Stan Shamu, IG market strategist, said in a note.
"This was deemed as a positive outcome for equities. However, very few imagined that this reading would disappoint by quite a margin and this has spooked investors."
Shares in Hennes & Mauritz will be in focus after the world's second-biggest fashion retailer posted a 14 percent rise in October sales from a year ago, beating forecasts.
Energy stocks will also be in the spotlight as Brent crude fell 1.2 percent to below $79 a barrel following Japan's data. Continuación...