AMERICAN MARKETS OUTLOOK: Stocks were expected to open sharply
lower Friday, in line with U.S. futures, as investors become
increasingly concerned about growth in the global economy, said
Manoj Ladwa, a trader at ETX Capital in London.
Futures on the Dow Jones Industrial Average were down 118 points
at 10981, Standard & Poor's 500 Futures were 13.6 points lower
at 1142.7, and Nasdaq Futures had also fallen 20.5 points at
2169.
"No one believes for a second that the European problem has gone
away," said Alan Valdes, director of floor trading at DME
Securities, adding that many traders were also closing out
positions amid light activity Thursday and expectations for even
lighter trading Friday.
Among the companies whose shares are expected to actively trade
in Friday's session are Micron Technology and Xyratex.
EUROPEAN MARKETS: European markets dropped sharply Friday,
putting the Stoxx Europe 600 index on track for a quarterly fall of
more than 17% as worries about rising inflation in the euro zone,
weak German retail sales and contracting Chinese manufacturing
activity all hurt sentiment.
The Stoxx Europe 600 index fell 1.6% to 225.14 in morning
trading and is set to record its worst quarter since the peak of
the crisis in late 2008.
Banks dropped across the board as the sovereign debt crisis
remained at the forefront of investor worries. Deutsche Bank
tumbled 7.2% in Frankfurt and Societe Generale fell 7% in Paris.
UBS downgraded the French bank to neutral from buy and said it has
moved to a "stressed" valuation scenario for the stock.
The two lenders were the biggest fallers on their respective
markets, with the German DAX 30 index dropping 2.9% to 5,478.64 and
the French CAC 40 index falling 2.2% to 2,961.85.
London's FTSE 100 was down 1% at 5142.63, pushing further into
the red. Stocks with exposure to China, such as Burberry and
Standard Chartered, are on the back foot, down 5.3% and 4.4%
respectively. "An unsettling theme building in markets is that
China's economy is at growing risk of a hard landing," said Dolmen
Securities, noting that at least three investment banks have this
week downgraded their estimates for Chinese growth.
At 1010 GMT, December bunds were up 1.0 at 136.25, and December
gilts had climbed 0.6 at 129.42.
At 1010 GMT, the dollar was up at Y76.85, but the euro was down
at $1.3520, and the pound was also lower at $1.5609.
===========================
TOP STORIES:
EURO-ZONE INFLATION SURGES: The annual rate of inflation in the
17 countries that share the euro surged to its highest level in
almost three years in September, while the number of people without
work fell slightly.
EUROCOIN POINTS TO SHARP SLOWDOWN IN EURO-ZONE GROWTH: The
euro-zone economy grew at the slowest pace since the end of the
recession in September as business and consumer confidence weakened
and share prices plummeted, according to a measure of activity
compiled by the Centre for Economic Policy Research and the Bank of
Italy.
SCHAEUBLE FEARS HIGH DEBT MAY LEAD TO BANKING CRISIS: The
situation in international financial markets is still worrisome,
and there is concern that debt levels in the euro zone and
elsewhere could trigger a crisis in the financial sectors, German
Finance Minister Wolfgang Schaeuble said.
GREECE'S FIRST ROUND OF TROIKA TALKS 'POSITIVE' -OFFICIAL:
Greece concluded the first round of face-to-face meetings with
visiting international inspectors in Athens, with Greek officials
describing talks as being "positive" after discussions between the
two abruptly ended about a month ago.
============================
INSIGHT & ANALYSIS FROM DOW JONES NEWSWIRES:
THE WALL STREET JOURNAL: The International Monetary Fund,
looking to assure markets of its financial firepower, is exploring
how to have lending power of at least $1.3 trillion, according to
officials involved with the discussions.
THE WALL STREET JOURNAL: A new round of poor data added to
Britain's bleak outlook, but the country's poor productivity, which
already trails that of many peers, raises questions about the
prospects for long-term growth, Alistair MacDonald wrote.
THE WALL STREET JOURNAL: Europe cleared a major hurdle toward
boosting the firepower of its bailout fund after Germany agreed to
increase its contribution--yet even supporters of the measures
warned further moves will likely be necessary.
THE WALL STREET JOURNAL: Areva's new chief executive faced the
delicate task of steering the global nuclear-engineering company
through a widespread industry slowdown.
HEARD ON THE STREET: A stomach-churning roller coaster is fun
every now and then. Riding it every day without a break can get
nauseating. That may help explain why investors have grown so
gun-shy of late, wrote David Reilly.
===========================
STILL TO COME:
ET/GMT COUNTRY/PERIOD
0830 1230 US Sep ISM-NY Report
0830 1230 CAN Jul GDP
0830 1230 US Aug Personal Income & Outlays
0945 1345 US Sep ISM-Chicago Business Survey - Chicago PMI
0955 1355 US Sep Thomson Reuters / University of Michigan Survey of
Consumers - final
1100 1500 US St. Louis Fed President Bullard speech in San Diego
1300 1700 CAN Bank of Canada Financial Statistics
1300 1700 US Sep Dow Jones Economic Sentiment Indicator
===========================
OTHER NEWS:
STATOIL SEES SIGNIFICANT AVALDSNES POTENTIAL: Statoil said there
is upside potential in the Avaldsnes discovery in the Norwegian
North Sea, confirming an announcement from Lundin Norway, the
operator of Avaldsnes.
LSE, SGX IN TALKS ON JOINT BID FOR LME: The London Stock
Exchange Group and the Singapore Exchange have held high-level
talks about a joint bid for the London Metal Exchange, a person
familiar with the matter tells The Wall Street Journal.
UK CONSUMER CONFIDENCE EDGES UP IN SEPTEMBER: U.K. consumers
became more confident about the economic outlook and their personal
financial prospects in September, a surprise development that is at
odds with most recent data.
GERMAN RETAIL SALES WELL BELOW EXPECTED IN AUGUST: German real
seasonally adjusted retail sales fell sharply on the month in
August, initial data showed, although experts are not alarmed and
still judge the mood among German consumers as broadly
positive.
MINMETALS RESOURCES TO BUY ANVIL MINING FOR $1.28B: Minmetals
Resources will buy Congo-focused copper miner Anvil Mining for
$1.28 billion in cash, a move that showed Chinese companies remain
willing to invest in risky locations.
-By James Leigh, Dow Jones Newswires; 4420-7842-9482;
james.leigh@dowjones.com