(Adds futures, more company items; updates snapshot table)
LONDON, Sept 8 (Reuters) - European shares were set to extend losses on Wednesday, tracking declines in Asia and on Wall Street, weighed by renewed concerns about the financial strength of European banks, and after weak German exports data.
At 0631 GMT, STOXX Europe 50futures were down 0.5 percent, Germany's DAX futures were down 0.4 percent and France's CAC-40 futures were up 0.3 percent.
On Tuesday, the FTSEurofirst 300index of leading European shares fell 0.4 percent to 1,061.79 points.
The European benchmark soared 62 percent between hitting a lifetime low in March, 2009 and the end of the year. But it is up just 1.5 percent in 2010, as investors worry about European debt levels and the strength of the economic recovery.
German exports fell unexpectedly month-on-month in July after two months of strong gains, though the country's trade surplus widened due to an even larger decline in imports, official data showed. [ID:nLDE68706C]
Ireland on Tuesday extended its guarantee for short-term bank liabilities, including corporate and interbank deposits, as expected as the government sought to reassure investors. [ID:nLDE6861YN]
U.S. stocks fell in very light volume on Tuesday as investors seized on renewed concerns about European banks as a reason to sell shares after strong gains last week.
Worry about Europe's banks resurfaced after the Wall Street Journal reported major lenders understated holdings in potentially risky government debt during tests designed to probe banks' strength.
Japan's Nikkei averagedropped more than 2 percent on Wednesday as the yen's advance to a fresh 15-year high against the dollar extinguished an upbeat mood gained from last week's better-than-expected economic data.
"European markets are set to start Wednesday's session on the back foot and with jitters being seen in the market over the strength of regional banks, the downside could prove somewhat protracted, not least given the fact that solid run up we've seen over the last couple of weeks makes profit taking attractive anyway," Ben Potter, research analyst at IG Markets, said in a note.
----------------------MARKET SNAPSHOT AT 0620 GMT----------------------
LAST PCT CHG NET CHG
S&P 5001,091.84 -1.15 % -12.67
NIKKEI9,024.60 -2.18 % -201.4
MSCI ASIA EX-JP495.91 -0.69 % -3.47
EUR/USD1.2717 0.25 % 0.0032
USD/JPY83.47 -0.39 % -0.3300
10-YR US TSY YLD2.598 -- 0.00
10-YR BUND YLD2.257 -- -0.02
SPOT GOLD$1,258.90 0.46 % $5.80
US CRUDE$73.86 -0.31 % -0.23
* US STOCKS-Market falls amid European bank worries [ID:nN07253043]
* GLOBAL MARKETS-Asian shares slip; rising yen hits Nikkei [ID:nSGE68702W]
* Dollar hits 15-yr low vs yen, euro struggles [ID:nTOE687030]
* Nikkei falls 2 pct as bullish yen saps confidence [ID:nTOE687011]
* PRECIOUS-Gold rises on bank scare; holds near record [ID:nSGE68701P]
* LME copper eases, appetite returns ahead of trade data [ID:nSGE68704R]
* Oil falls for 3rd session as investors offload risk [ID:nSGE68702M]
* TREASURIES-Europe worries, strong US auction boost bonds [ID:nN07245669]
The luxury goods group's five-month sales jumped 37 percent, beating forecasts, thanks to a strong rebound of pricey watch sales in Asia-Pacific and the Middle East. Net profit for the group's first half should be significantly higher than last year, said the group, which had not given an outlook when it released results for its financial year 2009/10 in May.
Representatives of Rio Tinto have come to Russia to visit potash producer Uralkaliwhich is seen as a potential acquisition target for the mining giant, Vedomosti reported on Wednesday.
UK takeover target Dana has set out its defence against a $2.6 billion hostile offer from Korea National Oil Corp.
Separately, Dana has acquired certain UK assets from Petro-Canada UK limited for 240 million pounds in cash.
The oil major is to release its internal probe into the Gulf of Mexico oil spill, and is set to spread the blame to other companies involved in the well's operations, The Wall Street Journal said on Tuesday. Separately, the oil giant has admitted the consequences of a deepwater blowout in the North Sea "have never been considered in detail" in its own emergency spill plan filed to the government, the Daily Telegraph reported.
The world's largest telecommunications operator by revenue, is selling its 3.2 percent stake in China Mobile Ltdfor about 4.3 billion pounds.
Tensions between Irish drugmaker Elan Corp Plc and its shareholders rose on Tuesday and cracks appeared within the company's board, as Elan fought back allegations of mismanagement and misconduct.
The British housebuilder said wider economic fears and the lack of mortgage finance meant the market for new housing was still challenging as it reported a jump in profits.
Europe's biggest low-cost airline could buy up to 300 aircraft, Chief Executive Michael O'Leary told the Financial Times. [ID:nN07247237]
A trade panel which probes patent infringement allegations said late on Tuesday it would look into whether Apple, Nokia, Samsung, Research in Motion and others infringed Spansion's patents for flash memory chips. [nLDE68701S]
The U.S. International Trade Commission said that it would take up a complaint by Spansion Incthat the companies infringed four of its patents. For more on the company, double click on [NOK1V.HE]
Swiss drugs industry supplier Lonza will manufacture a number of drug compounds for Britain's GlaxoSmithKline, in a sign demand for the Swiss group's products is recovering. [ID:nLDE68705U]
(Reporting by Brian Gorman)
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