(Adds more from Goldman Sachs note)
LONDON, Aug 25 (Reuters) - European equity futures rose on Tuesday to recover slightly from a sharp sell-off in the previous session that led to nearly 450 billion euros ($519.89 billion) wiped off the region’s top shares.
Futures on the euro zone’s blue-chip Euro STOXX 50 index rose 1.3 percent while futures on Germany’s DAX also advanced 1.6 percent. Britain’s FTSE 100 futures rose 0.9 percent while France’s CAC futures climbed by 1.4 percent.
The FTSE and DAX had both fallen 4.7 percent on Monday, while the pan-European FTSEurofirst 300 index slumped 5.4 percent, with roughly 450 billion euros wiped off the total market capitalisation of the FTSEurofirst in its worst daily closing performance since November 2008.
World financial markets have been rattled in recent weeks by China’s devaluation of its yuan currency and by a sell-off in the Chinese stock market.
Chinese shares slumped again on Tuesday, but other Asian stock markets recovered ground.
The leaders of Germany and France also voiced confidence on Monday that China would take the necessary steps to stabilise its economy, while analysts at Goldman Sachs also expected the global economy to be able to withstand the knock-on effects from the Chinese market slump.
“While there may be risks to the downside based on confidence effects, and while inflation may be lower as a result, we remain of the view that a global recession is very unlikely,” Goldman Sachs wrote in a note.
However, Goldman Sachs cut its short-term outlook for global stock markets. The U.S. bank cut its three-month position on European equities to “neutral” from “overweight” and also reduced its three-month targets on the STOXX 600 , Euro STOXX 50 and FTSE 100 indexes.
($1 = 0.8656 euros) ------------------------------------------------------------------------------ > Asian shares bounce off 3-year lows while China’s suffering goes on > US STOCKS-Wall St posts worst day in four years, S&P 500 now in correction > Nikkei slides as Europe wakes up to sell Japanese shares > TREASURIES-U.S. bond prices gain on global market jitters > FOREX-Dollar climbs vs yen as risk aversion eases > PRECIOUS-Gold holds below 7-week high as dollar, equities recover > METALS-Copper stages modest rebound after rout on China woes > Oil rebounds after sharp losses, but China worries weigh
The planemaker is considering legal action against the Japanese defence ministry after it failed to win a multi-billion dollar military helicopter contract, the Financial Times reported.
Boeing Co on Tuesday raised its forecast for China’s aircraft demand over the next 20 years despite a slowing economy and a tumbling stock market that have triggered a worldwide slide in equity and commodity prices.
Carrefour said it is in exclusive talks with real estate group Altarea Cogedim to buy all of French e-commerce company Rue du Commerce to boost its non-food online retail business. Altarea bought Rue du Commerce for 100 million euros in 2012. Rue du Commerce had 317 million euros in 2014 sales.
Daimler said it was cutting another 1,500 jobs at a plant that makes tricks in Brazil in response to a slump in demand in the country, leading workers to declare an open-ended strike at the factory.
Austrian fibre maker Lenzing expects better full-year results in 2015 compared with last year, it said on Tuesday, as it almost doubled its earnings before interest and tax to 60.5 million euros ($69.84 million) in the first half.
U.S.-based Monsanto sweetened its offer to buy Switzerland’s Syngenta AG, valuing the company at around $47 billion as it tries to lure the Swiss firm to the negotiating table, a person familiar with the matter said on Monday.
British retailer Tesco has received three separate binding bids for its South Korean unit from a consortium of Affinity Equity Partners and KKR & Co , Carlyle Group LP, and MBK Partners, people familiar with the matter said.
French oil major Total confirmed on Monday that it had stopped all production of coal as of last week after the South African government approved the sale of its coal mining operations there.
The carmaker plans to develop a hybrid version or a mix of its MQB architecture and the PQ platform for emerging markets, The Economic Times reported, citing several sources. (Reporting by Sudip Kar-Gupta)