European Factors to Watch-Shares set to fall with focus on China and N.Korea

miércoles 6 de enero de 2016 03:23 GYT
 

(Adds futures, detail)

LONDON Jan 6 (Reuters) - European stocks were set to edge lower on Wednesday, as concerns over the Chinese economy resurfaced after it allowed the yuan to weaken further, while a North Korean nuclear test heightened geopolitical tensions.

Futures on the Euro STOXX 50, German DAX, France's CAC and Britain's FTSE were 0.1-0.3 percent lower ahead of the cash market open.

The People's Bank of China set a weaker midpoint for the yuan, prompting concerns that the world's second-biggest economy could be even weaker than imagined. A survey showed that China's services sector expanded at its slowest pace in 17 months in December.

"Equity markets did not take the (yuan) surprise well... There was little joy to be had in the Caixin Services PMI release today either," Angus Nicholson, market analyst at IG, said in a note.

Risk sentiment was also dampened after North Korea said it had successfully conducted a test of a miniaturised hydrogen nuclear device on Wednesday morning, marking a significant advance in the isolated state's strike capabilities and raising alarm bells in Japan and South Korea.

In a quiet day for corporate news, automakers might be in focus after U.S. auto sales were strong in December, indicating that 2015 would smash records. Most forecasters said the new year will be even better.

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