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Europe Index Futures Tumble, Indicating Equities to Extend Drop

26 March 2015 12:53 (UTC+04:00)
Europe Index Futures Tumble, Indicating Equities to Extend Drop

By Bloomberg

European stock-index futures tumbled, indicating equities may retreat, after posting their worst drop in more than two months.

Futures on the Euro Stoxx 50 Index expiring in June slid 1.2 percent to 3,578 at 7:08 a.m. in London. European stocks dropped yesterday, with all but two of 19 industry groups on the Stoxx Europe 600 Index retreating. Technology shares posted the worst performance, extending losses as U.S. peers also fell.

Investors will watch developments in the Middle East after Saudi Arabia and its allies started bombing targets in Yemen. The attack on Shiite rebels marks an escalation in tensions with Iran, which the world’s largest oil exporter blames for fomenting trouble in its southern neighbor.

Investors also await U.S. data, including a report on jobless claims, after an unexpected drop in durable goods orders. Standard & Poor’s 500 Index futures fell 0.4 percent.

Among stocks that may move on corporate news, Royal Bank of Scotland Group Plc may be active after saying that investors agreed to pay $3.21 billion in a public offering for a 25 percent stake in its U.S. unit Citizens Financial Group Inc.

Airbus Group NV may move after saying it sold additional shares in Dassault Aviation SA, cutting its holding in the maker of the Rafale fighter to 24.6 percent and using the proceeds to fund growth.

Adidas AG may move. The world’s second-biggest sporting- goods maker forecast net income will grow about 15 percent on average each year through 2020 and pledged to pay out a bigger proportion of profit to shareholders.

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