PARIS, Dec 21 European stocks are set to fall on Friday, trimming recent lofty gains after a proposal from Republican leader John Boehner to avoid the so-called fiscal cliff failed to get support from his party. At 0710 GMT, futures for Euro STOXX 50, for Germany's DAX and for France's CAC were down 0.4-0.7 percent. Republican lawmakers rejected Boehner's proposal designed to win concessions from President Barack Obama in the "fiscal cliff" talks, reviving fears of $600 billion worth of tax hikes and spending cuts that could drag the U.S. economy back into recession. "This lack of agreement pretty much guarantees that any solution is likely to push beyond the January deadline and increase market uncertainty at a time when volumes will be a lot lighter than usual," Michael Hewson, senior market analyst at CMC Markets, wrote in a note. The impasse sent U.S. stock index futures sharply down, with futures for the S&P 500 down 1.5 percent, Dow Jones futures down 1.2 percent and Nasdaq 100 futures down 1.5 percent. The euro zone's blue chip Euro STOXX 50 index has surged 9.5 percent since mid-November, propelled by growing optimism that the worst of the euro zone crisis is behind and by expectations of a deal in Washington to avoid the "fiscal cliff". The sharp rally has pushed the index into an 'overbought' level not seen since 2006, with its 14-day relative strength index (RSI) - a widely-used technical momentum indicator - hitting 72, fuelling worries of an imminent pull-back. "It seems unlikely that any legislation to address the main fiscal cliff policies will be passed before the end of the year," Nomura economist Lewis Alexander wrote in a note. "We expect negotiations to continue into the new year. It may take the imminent threat of a breach of the debt limit in February, or March at the latest, to force an agreement... The longer uncertainty persists, the greater the negative impact on the economy." ------------------------------------------------------------------------------- MARKET SNAPSHOT AT 0708 GMT LAST PCT CHG NET CHG S&P 500 1,443.69 0.55 % 7.88 NIKKEI 9,940.06 -0.99 % -99.27 MSCI ASIA EX-JP 540.59 -0.94 % -5.12 EUR/USD 1.3195 -0.35 % -0.0047 USD/JPY 83.92 -0.52 % -0.4400 10-YR US TSY YLD 1.756 -- -0.04 10-YR BUND YLD 1.414 -- 0.00 SPOT GOLD $1,644.14 -0.18 % -$3.00 US CRUDE $89.29 -0.93 % -0.84 > GLOBAL MARKETS-Shares slide on worries about U.S. budget impasse > U.S. stock futures drop after Boehner "cliff" vote falls short > Tokyo's Nikkei share average closes down 0.99 pct > TREASURIES-U.S. 10-year notes rally as "fiscal cliff" hopes fade > Euro falls, yen rises as Boehner drops "fiscal cliff" plan > Gold near 4-month low on U.S. budget talks standoff > Copper rebounds from 3-week low; U.S. fiscal talks in focus > Brent slips below $109 as U.S. fiscal talks stall COMPANY NEWS: FCC Spanish construction and services group FCC said on Thursday it would suspend its dividend for 2012 so it could focus on paying off debt and boosting its balance sheet in a tough economic environment. ADP The operator of the French capital's Charles de Gaulle and Orly airports cut its medium-term earnings targets in response to lower-than-expected passenger traffic growth. SIEMENS The engineering giant said it plans to cut almost 1,100 jobs in Germany as the company trims costs to make its energy operations more profitable. EDF France's nuclear watchdog ASN said EDF could proceed with works to reinforce the base of its Fessenheim nuclear reactor 1, a plant scheduled to shut by the end of 2016. Enbridge Inc will buy a 50-percent stake in its second wind-power project in the province of Quebec from EDF's Canadian renewable-energy unit for C$170 million ($172 million), the company said. ENDESA Spanish energy company Endesa's Latin American power unit Enersis approved a controversial $6 billion planned capital increase on Thursday. PPR The French luxury group is in exclusive talks to sell its Cyrillus and Vert Baudet children's apparel brands to investment fund Alpha, online newspaper Wansquare reported. ARCELORMITTAL The Bosnian unit of the world steel major wants to lay off more than half its 2,600-strong workforce because the plant has the lowest productivity in Europe, a union leader said. ADIDAS Adidas rival Nike on Thursday reported forecast-topping quarterly profit on strong demand in North America while its orders volume indicated steady worldwide demand. KBC KBC Group said the Belgian government had cut the fee the bank pays for state guarantees on its debt, adding the change would not have a material impact on fourth-quarter results. PSA PEUGEOT CITROEN The European Union is challenging the terms of a French government-backed debt rescue for the carmaker's financing arm, Les Echos reported. HOLCIM Holcim has reduced its shareholding in Siam City Cement Company Limited (SCCC) from 36.8 pct to 27.5 pct. CREDIT AGRICOLE The French lender has told staff representatives it will focus on cutting costs at its investment bank without a new layoffs plan, sources said. CASINO Abilio Diniz, chairman of Grupo Pao de Acucar SA, filed for arbitration against Casino, the Brazilian retailer's majority shareholder, alleging an attempt to weaken his position in the company. PUMA The German sportswear maker will pay 42.2 million euros ($55.9 million) to its former Spanish sales partner Estudio 2000 in return for winning all Spanish trademark rights, Puma said on Thursday, citing a ruling by an arbitration court ASMI The Dutch semiconductor equipment maker will cut about 110 jobs at its manufacturing operation in Singapore as part of a cost reduction programme announced earlier this year, the company said. PUBLICIS GROUPE The French advertiser acquired U.S. digital advertising agency Rokkan.