EDINBURGH, May 21 European stocks were set to fall on Wednesday,
tracking losses in the United States and in Asia to lead major indexes further
away from multi-year highs.
At 0612 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were 0.1-0.3 percent
Wall Street set the tone for a weak session in Asia and Europe after
disappointing results for heavy machinery firm Caterpillar and in the
retail sector prompted a broad sell-off in U.S. stocks.
"Europe should open on the back foot this morning, with futures markets
finding little inspiration from the modest moves in Asia," Chris Weston, chief
market strategist at IG, said in a note.
The retail sector will also be in focus in Europe after luxury firm Burberry
met forecasts with an 8 percent rise in annual profit, though it
reiterated the risk of a material impact on profit if foreign exchange rates
remain at current levels.
Across the STOXX Europe 600, earnings season so far has been
mediocre, with 51 percent of companies missing earnings estimates and nearly 60
percent missing analyst expectations for revenue, StarMine data showed.
The pan-European FTSEurofirst 300 is down 0.3 percent so far this
week, suffering from poor results from the likes of telecoms giant Vodafone
. It has fallen 1.2 percent since hitting its highest level since May
2008 last Thursday.
"In general terms the European remains rangebound and, although we are at
the upper end, we continue to see the equity market in good shape for a move
higher," Atif Latif, director of trading at Guardian Stockbrokers, said.
Europe bourses in 2014: (link.reuters.com/pad95v)
Asset performance in 2014: (link.reuters.com/rav46v)
MARKET SNAPSHOT AT 0619 GMT:
LAST PCT CHG NET CHG
S&P 500 1,872.83 -0.65 % -12.25
NIKKEI 14042.17 -0.24 % -33.08
MSCI ASIA EX-JP 483.08 -0.08 % -0.4
EUR/USD 1.3706 0.03 % 0.0004
USD/JPY 101.18 -0.13 % -0.1300
10-YR US TSY YLD 2.512 -- 0.00
10-YR BUND YLD 1.346 -- -0.01
SPOT GOLD $1,294.10 0.02 % $0.30
US CRUDE $102.89 0.55 % 0.56
> GLOBAL MARKETS-Asia spooked by Wall Street loss, dollar dips
> US STOCKS-Retail stocks lead selloff on Wall St after earnings
> Nikkei falls as BOJ awaited; construction equipment makers hit
> TREASURIES-U.S. bond prices rise on Dudley comments
> FOREX-Wounded dollar eyes BOJ, Aussie slides to 2-week low
> PRECIOUS-Gold steady; platinum gains on supply worries
> METALS-Copper drifts as traders take profits on tepid demand
> Brent climbs towards $110 on Libya violence, U.S. stock draw
The German Association of the Automotive Industry (VDA) expects a surge in
sales of electric cars in 2014. "This year, we will likely see more than 10,000
new registrations in electric cars in Germany for the first time," VDA president
Matthias Wissmann told German daily "Stuttgarter Zeitung". Last year, about
6.000 cars were sold.
Ministers from France, Germany, Britain and Spain said they would work
together with the European Commission to raise their concerns over tax breaks
received by U.S. planemaker Boeing, which they said represent unfair
British luxury brand Burberry met forecasts with an 8 percent rise in annual
profit, though it reiterated that if foreign exchange rates remain at current
levels there will be a material impact on 2014-15 profit.
U.S. authorities are seeking more than $5 billion from BNP Paribas to settle
federal and state investigations into the French lender's dealings with
sanctioned countries, Bloomberg reported, citing a person familiar with the
DEUTSCHE LUFTHANSA AG
The airline is recovering from a pilot strike in April and views competition
from state-owned carriers as one of its biggest challenges, its new chief
executive told Reuters.
Germany's Siemens wrote to Alstom on Tuesday asking for
more information ahead of a likely offer for the French company's power
business, French Economy Minister Arnaud Montebourg said.
The chairman of German retailer Metro defended Chief Executive Olaf Koch
against criticism of his handling of a power struggle with the founder of the
group's electronics chain Media-Saturn, speaking in an interview with the daily
Danish shipping and oil group A.P. Moller-Maersk reported a first-quarter
net profit above forecast thanks to doubling of profit in container shipping
business Maersk Line.
For more on the company, click on
Novartis said a study showed its once-daily inhaled medicine Ultibro
Breezhaler was non inferior to combination therapy in improving health-related
quality of life outcomes in patients with moderate-to-severe chronic obstructive
pulmonary disease (COPD).
Italian carmaker Fiat FIA.MI plans to invest around 2.36 billion zlotys
($773 million) to upgrade its factories in southern Poland where it plans to
start the production of a new model, the Polish government said on Tuesday.
Novo Nordisk, the world's biggest insulin maker, said late on Tuesday the
U.S. Food and Drug Administration (FDA) had informed the company that an FDA
Advisory Committee meeting was tentatively scheduled for Sept. 11 to discuss
Novo's new drug application for liraglutide 3 mg for the treatment of obesity.
Novo submitted the application in December 2013.
For more on the company, click on
(Reporting by Alistair Smout; Editing by Francesco Canepa and Anupama Dwivedi)