PARIS, Nov 17 (Reuters) - European stocks were set to fall on Monday, hit by worries over the pace of global growth after data showed Japan, the world’s third-largest economy, slipped into recession.
At 0722 GMT, futures for Euro STOXX 50, for Germany’s DAX and for France’s CAC were down 0.7-0.8 percent.
Japan’s gross domestic product (GDP) fell at an annualised rate of 1.6 percent in July-September after dropping 7.3 percent in the second quarter following a rise in the national sales tax, which clobbered consumer spending.
The country’s economy had been expected to rebound by 2.1 percent in the third quarter, but consumption and exports remained weak, saddling companies with huge inventories to work off.
Tokyo’s Nikkei index tumbled 3 percent on Monday, suffering its biggest one-day slump since August.
“The theory heading into the data was that a weaker-than-expected reading would see (Prime Minister Shinzo) Abe delay the sales tax hike by around 18 months and call a snap election,” Stan Shamu, IG market strategist, said in a note.
“This was deemed as a positive outcome for equities. However, very few imagined that this reading would disappoint by quite a margin and this has spooked investors.”
Shares in Hennes & Mauritz will be in focus after the world’s second-biggest fashion retailer posted a 14 percent rise in October sales from a year ago, beating forecasts.
Energy stocks will also be in the spotlight as Brent crude fell 1.2 percent to below $79 a barrel following Japan’s data.
Europe bourses in 2014: (link.reuters.com/pad95v)
Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ > GLOBAL MARKETS-TOKYO SHARES SKID AS JAPAN SLIPS INTO RECESSION > US STOCKS-WALL ST POSTS GAINS FOR 4TH WEEK; ENDS FLAT FOR DAY > TOKYO'S NIKKEI SHARE AVERAGE CLOSES DOWN 2.96 PCT > DOLLAR RETREATS FROM 7-YR HIGH VS YEN AS JAPAN RECESSION HITS NIKKEI > PRECIOUS-GOLD DIPS IN CHOPPY TRADE AFTER SHORT-COVERING RALLY > METALS-LONDON COPPER HITS TWO-WEEK HIGH ON U.S. GROWTH SIGNALS > BRENT SLIPS TO $79 AS JAPAN ENTERS RECESSION
The world’s second-biggest fashion retailer posted on Monday a 14 percent rise in October sales from a year ago, beating forecasts.
The European media firm nearly doubled the profits attributable to the group to 2.75 billion euros in the first nine months by collecting the proceeds of selling its Moroccan telecom unit and a stake in headphone maker Beats.
CEO Joe Kaeser said Siemens’ healthcare unit would remain within the company for the foreseeable future, dismissing speculation about a disposal, which emerged after Siemens announced the legal separation of the business this month.
The British wine warehouse chain posted a 10.5 percent fall in first-half profit, hurt by higher investment costs and weaker demand for the Bordeaux 2013 vintage.
The French government wants Philippe Varin, former head of PSA Peugeot Citroen, to take over as chairman of the board at state-owned nuclear group Areva, a source at the economics ministry said.
The group said its board would not give an opinion on every bid made by Chinese conglomerate Fosun and Italian tycoon Andrea Bonomi as they battle to acquire the holiday resort company.
Roche said on Monday that the U.S. health regulator approved its Avastin drug as a treatment for women with ovarian cancer that is resistant to platinum-containing chemotherapy.
UBS AG, among the six banks fined this week for their role in the global foreign exchange scandal, is looking at clawing back bonuses from its traders.
The U.S. Food and Drug Administration has approved Sanofi’s multiple sclerosis treatment Lemtrada, Sanofi said.
The chairman of Italy’s troubled Banca Monte dei Paschi di Siena said on Sunday there had still been no approach from another bank over a possible merger but the option remained on the table.
Enel’s placement of a stake in Endesa reserved to institutional investors has been fully covered on the second day of the offer, amounting to a total offer of 22 percent in the Spanish utility, Il Sore 24 Ore said in an unsourced report.
France is ready to sell more of its stakes in energy companies and its holdings only need to be big enough to maintain influence over strategy, Energy Minister Segolene Royal said.
Reporting by Blaise Robinson; Editing by James Regan