European Factors to Watch-Shares set to fall as oil swings

viernes 15 de enero de 2016 03:24 GYT

LONDON Jan 15 (Reuters) - European stocks were set to fall on Friday, as investors digested the latest swings in the oil price which sent U.S. and Asian shares in opposite directions and Chinese shares closed at their lowest level in over a year.

U.S. crude oil futures fell in Asian trade on Friday, heading lower after posting the first significant gains for 2016 in the previous session.

Those gains had supported the U.S. S&P 500 to its best day since December. However, the subsequent fall in oil took the wind out of Asian stock markets, which hit a 3-1/2 year low.

Falling oil hit Shanghai's Composite Index, which closed at its lowest level since December 2014 even as China's yuan steadied.

European shares were set to fall again after hitting a 13-month low in the previous session, with the pan-European FTSEurofirst 300 index ending down 1.5 percent at 1,334.36 points.

Despite the fall in the previous session, the index is currently down just 0.5 percent for the week. However traders were cautious ahead of the weekend, and said that further selling pressure would be a negative signal for the medium term.

"Strong risk aversion ahead of the weekly close is a clear vote of no confidence in the markets, which doesn't bode well for the coming weeks," Craig Erlam, senior market analyst at OANDA, said in a note.

"It may suggest that rather than seeing stabilisation this week, what we've actually witnessed is the calm before the storm."

Futures on the Euro STOXX50, Germany's DAX, France's CAC and Britain's FTSE were down 0.4-0.8 percent ahead of the cash market open.   Continuación...