European Factors to Watch-Shares set to extend slump as Greece nears default
(Adds quote, detail) LONDON, June 30 (Reuters) - European stocks were seen falling on Tuesday, extending the previous session's drop as Greece looked set to default on an international loan ahead of a weekend referendum that could pave the way for it to leave the euro. With Greece hours away from defaulting on a 1.6 billion euro loan from the International Monetary Fund, tens of thousands of Greeks rallied on Monday to back their leftwing government in a clash with foreign lenders which has pushed Greece close to financial chaos and forced a shutdown of its banking system. The European Commission president Jean-Claude Juncker said if Greeks rejected an offer from creditors to save them from bankruptcy in Sunday's referendum, it would be taken as a signal that they wanted to quit the euro. "Greece (remains) centre stage and the wide consensus points to a default on Tuesday," Jonathan Sudaria, trader at London Capital Group, said in a note. "Although European banks were badly hit yesterday, officials in Brussels were adamant this time broader risk has been contained." Euro zone stocks suffered their biggest one-day fall since 2011 on Monday, with southern European banks in particular getting pummelled after Greece shut its banks and imposed capital controls. The fall was set to continue, with futures on the Euro STOXX 50, French CAC, Britain's FTSE 100 and Germany's DAX down 0.5 to 0.7 percent. While Juncker made a last minute offer in a bid to reach a deal before Tuesday's deadline, there was little sign that Greek Prime Minister Alexis Tsipras was prepared to drop his repeated rejections of the bailout offer. The Athens stock market and main stock index is set to remain shut on Tuesday. COMPANY NEWS: LUFTHANSA Talks to resolve a pay dispute at German airline Lufthansa have made enough progress to lift the threat of any immediate work stoppages, flight attendants' union UFO said early on Tuesday. DEUTSCHE TELEKOM, TELEFONICA DTL The European Union reached a preliminary deal on Tuesday to scrap mobile roaming charges across the 28-country bloc by June 2017 and to require telecoms operators such as Deutsche Telekom DTEGn.DE and Orange ORAN.PA to treat all Internet traffic equally. ROYAL DUTCH SHELL Royal Dutch Shell could begin drilling for oil in the Arctic off Alaska as early as the third week in July, when it expects sea ice to begin clearing, a spokesman said on Monday. RIO TINTO Former Xstrata boss Mick Davis' X2 Resources is in "serious" talks to purchase some of Rio Tinto Plc's Australian coal assets, the Financial Times reported citing people familiar with the matter. HIKMA : Jordan's Hikma Pharmaceuticals Plc has emerged as a bidder for German drugmaker Boehringer Ingelheim's generics unit Roxane Labs, Bloomberg reported, citing people familiar with the matter. FRAPORT German airports operator Fraport is in talks to sell part of its cargo business to Worldwide Flight Services (WFS), industry publication Cargo Forwarder Global said without citing sources. ALSTOM The chief executive of French engineering group Alstom is confident the planned sale of the group's power business to General Electric Co will win European Union approval, he was quoted saying in a newspaper interview. TRANSGENE The biotechnology company said on Monday it was restructuring to focus on reasearch and development, a move that is expected to result in the loss of approximately 120 positions, mostly in manufacturing and pharmaceutical development and support functions. EUROTUNNEL Employees of a ferry service recently sold by Eurotunnel renewed a blockade of the northern French port of Calais on Monday after a court rejected their bid to extend the service's charter contract with Eurotunnel. LEONI The group still aims to achieve a 7 percent EBIT margin by 2016 and considers some bolt-on takeovers, Chief Executive Dieter Belle told Boersenzeitung. ADLER REAL ESTATE The property group decided not to pursue a convertible bond issue due to the Westgrund merger in the current market environment. EUSKALTEL Spanish telecoms company Euskaltel said late on Monday it had set its price for its initial public offering (IPO) at 9.5 euros per share, valuing the company at 1.2 billion euros. AENA Spanish air traffic controllers are to strike over four days in July in a dispute over penalties given by airport operator AENA to controllers for a strike in 2010, their union said on Monday. OHL Spanish privately-owned conglomerate Grupo Villar Mir wants to sell Torre Espacio, one of Madrid's tallest skyscrapers, and has brought in real estate consultants Aguirre Newman to help it do so, three sources with knowledge of the matter said. MAJOR MACROECONOMIC DATA/EVENTS (GMT) : 0600 DE Retail sales 0645 FR Consumer spending, producer prices 0700 CH KOF indicator 0755 DE Unemployment 0800 IT Unemployment 0830 GB GDP 0900 EZ Inflation 0900 IT Inflation 1255 US Redbook 1400 US Consumer Confidence ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0519 GMT: LAST PCT CHG NET CHG S&P 500 2,057.64 -2.09 % -43.85 NIKKEI 20199.82 0.45 % 89.87 MSCI ASIA EX-JP 475.68 1.12 % 5.25 EUR/USD 1.1192 -0.38 % -0.0043 USD/JPY 122.28 -0.2 % -0.2500 10-YR US TSY YLD 2.319 -- -0.01 10-YR BUND YLD 0.779 -- -0.02 SPOT GOLD $1,176.65 -0.28 % -$3.30 US CRUDE $58.22 -0.19 % -0.11 > GLOBAL MARKETS-China stock slide adds to Greek jitters > US STOCKS-Wall St tumbles on Greek debt crisis > Nikkei edges up but investors still bewitched by Greece > TREASURIES-U.S. bonds rally as Greece debt impasse spurs bids > FOREX-Euro holds gains vs dollar as Greek debt saga plays out > PRECIOUS-Gold slips on weak safe-haven bids, robust dollar > METALS-London nickel careens down after ShFE widens delivery > Oil holds near lows as Greek enters 2nd day of bank shutdown (Reporting by Alistair Smout; Editing by Sudip Kar-Gupta)
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