European Factors to Watch-Shares seen lower on Greece jitters

lunes 5 de enero de 2015 03:57 GYT

LONDON Jan 5 (Reuters) - European index futures were lower ahead of the equity market open on Monday, with political uncertainty in Greece firmly in the spotlight ahead of elections later this month, as German Vice Chancellor Sigmar Gabriel said the German government wanted Greece to stay in the euro zone.

The Jan. 25 election in Greece could vault the left-wing Syriza party into power, raising the risk of a sovereign default and severe losses for the European Central Bank on any Greek bonds it holds.

Asian shares were also subdued as soft manufacturing surveys soured the mood. The euro hit a nine-year low versus the dollar, with investors stepping up bets the European Central Bank would unveil long-awaited extra stimulus measures in a bid to boost the economy and quash fears of a deflationary spiral.

Euro STOXX 50 and French CAC 40 futures were down 0.9 percent, while German DAX futures were down 0.6 percent.

"European equities are set to dip on the open as Eurozone jitters get markets wobbling again," said Jonathan Sudaria, dealer at trading firm London Capital Group. "It's the nightmare scenario where contagion effects reach Italy, Spain and Portugal that should be worrying traders."

European stocks had already kicked off the new year in slightly negative territory on Friday, on the back of subdued euro-zone manufacturing, though the losses were mitigated by growing expectations of new measures from the ECB to boost the euro-zone economy.

ALLIANZ Allianz subsidiary Pimco said its Total Return Fund had outflows of $19.4 billion in December, up from $9.5 billion withdrawn in November, leaving assets at less than half their 2013 peak level after 20 months of withdrawals.

DEUTSCHE BANK The lender has seen continued inflows into its German Wealth Management division, growing by 12 percent a year since 2009. This growth rate will likely accelerate, Joachim Haeger, head of Wealth Management Germany, told Euro am Sonntag.   Continuación...