June 16, 2016 / 5:11 AM / 2 years ago

European Factors to Watch-Shares seen opening lower

(ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets for site in development. See the bottom of the report)

LONDON, June 16 (Reuters) - European stocks were seen opening lower on Thursday, resuming a losing streak that has pushed a key European equity index down to a near four-month low as concerns linger over Britain’s vote next week on its membership of the European Union.

Financial spreadbetters at IG expected Britain’s FTSE 100 to open down by 41 points, or 0.7 percent lower. Germany’s DAX and France’s CAC were also seen down by 0.7 percent, with the DAX expected to fall 66 points while the CAC was seen down by 29 points.

U.S. stocks fell on Wednesday, with the U.S Federal Reserve having lowered its economic growth forecast and signalling it still planned two rate increases this year, even though the Fed put off an immediate rate hike.

Fed Reserve Chair Janet Yellen acknowledged that Britain’s possible exit from the European Union was one of the factors in the latest rate decision, saying the June 23 referendum would have “consequences for economic and financial conditions in global financial markets.”

Worries about Britain exiting the EU, dubbed as “Brexit”, have hit markets in recent weeks, with the pan-European FTSEurofirst 300 index falling to its lowest level in nearly fourth months earlier this week.

Asian stocks also turned lower on Thursday while the yen surged after the Bank of Japan refrained from taking further stimulus steps. ——————————————————————————————————————— > GLOBAL-MARKETS-Asia stocks down, yen surges after BOJ refrains from offering more stimulus > US STOCKS-Wall St falls as Fed holds steady and Brexit vote looms > Japan’s Nikkei share average falls to 4-month low after BOJ > TREASURIES-Yields fall after Fed keeps rates unchanged, cuts growth forecast > FOREX-Dollar slides vs yen after BOJ holds off from easing > PRECIOUS-Gold tops $1,300 after Fed’s cautious outlook > METALS-Copper steady after biggest jump since March on cautious Fed > Oil futures down on U.S. stockpile report, Brexit concern

ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). In a real-time, multimedia format from 0600 London time through the 1630 closing bell, it will include the best of our market reporting, Stocks Buzz service, Eikon graphics, Reuters pictures, eye-catching research and market zeitgeist. Breaking news and dramatic market moves will continue to be alerted to all clients and we will continue to provide a short opening story and comprehensive closing reports.

If you have any thoughts, suggestions or feedback on this, please email mike.dolan@thomsonreuters.com.

Mike Dolan, Markets Editor EMEA. (Reporting by Sudip Kar-Gupta)

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