European Factors-Shares to extend falls; U.S. data eyed
LONDON, Feb 5 (Reuters) - European shares are set to extend the previous session's sharp losses on Friday as weakness on Wall Street overnight and worries over euro zone sovereign debt problems seen weighing on risk appetite.
Investors await a key U.S. jobs report from the United States later in the day. Financial spreadbetters expected Britain's FTSE 100 .FTSE to open 18 points lower, or down 0.3 percent; Germany's DAX .GDAXI to open 13 to 14 points lower, or down 0.3 percent; and France's CAC 40 .FCHI to open 8 to 9 points lower, or down 0.2 percent.
The pan-European FTSEurofirst 300 .FTEU3 index on top European shares fell 2.8 percent on Thursday, its lowest close since Nov. 30 and its biggest one-day percentage fall in 10 weeks as worries over euro zone peripheral countries shook investors' confidence.
On Wall Street, the Dow Jones industrial average .DJI briefly fell below the crucial 10,000 mark as stocks suffered their worst losses in more than nine months. In Asia, Japan's Nikkei average .N225 dropped more than 3 percent to its lowest in seven weeks on Friday.
Worries over euro zone peripheral countries' fiscal health is likely to continue to weigh on financial markets. The U.S. dollar extended gains as investor anxiety about sovereign debt in Greece, Portugal and Spain sparked a sell-off in the euro and growth-linked currencies such as the Australian dollar.
Investors will eye the U.S. non farm payrolls data at 1330 GMT for fresh clues on the extent of economy recovery in the country. A Reuters survey predicted non-farm payrolls grew 5,000 in January after a surprise 85,000 drop in December. The unemployment rate, however, is expected to edge up to 10.1 percent in January from 10 percent.
Other macroeconomic data set for release on Friday are U.S. Economic Cycle Research Institute's (ECRI) monthly inflation numbers at 1440 GMT. Also of interest will be UK producer prices, at 0930 GMT, with both input and output prices seen rising further January.
----------------------MARKET SNAPSHOT AT 0625 GMT----------------------
LAST PCT CHG NET CHG S&P 500 .SPX 1,063.11 -3.11 % -34.17 NIKKEI .N225 10,057.09 -2.89 % -298.89 MSCI ASIA EX-JP .MIASJ0000PUS 441.55 -3.48 % -15.92 EUR/USD EUR= 1.3713 -0.09 % -0.0013 USD/JPY JPY= 89.59 0.66 % 0.5900 10-YR US TSY YLD US10YT=RR 3.612 -- 0.00 10-YR BUND YLD EU10YT=RR 3.148 -- -0.01 SPOT GOLD XAU= $1,066.20 0.34 % $3.60 US CRUDE CLc1 $73.43 0.40 % 0.29 -----------------------------------------------------------------------
* Nikkei sinks to two-month closing low; Toyota gains [ID:nTOE61405H]
* Dow dips below 10,000 mark on eurozone debt, jobs data [ID:nN04247591]
* Asian shares slide; euro up on Swiss c.bank talk [ID:nSGE61401D
* TREASURIES-Slip in Asia, all eyes on jobs data [ID:nTOE614028]
* Oil rebounds from 2010 lows as dollar pares gains [ID:nSGE61405Q]
* Gold hovers atop 3-mth low; risk aversion remains [ID:nTOE61402K]
* Euro leaps after rumour of Swiss intervention [ID:nTOE614043]
* METALS-Shanghai copper slides 4 pct, LME extends [ID:nSGE614051
COMPANY NEWS:
BRITISH AIRWAYS BAY.L
The airline reports third-quarter numbers.
JULIUS BAER HOLDINGS AG (BAER.VX)
The Swiss private bank posts FY net profit of 473 million Swiss francs, hired 48 new client managers in 2009.
BG GROUP (BG.L)
The gas producer reports full-year results.
KESKO OYJ (KESBV.HE)
The Finnish retailer reports fourth-quarter figures.
(Reporting by Harpreet Bhal)
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