(RTTNews) - Global cues are pointing towards a lower opening for the European markets on Monday. The U.S. market plunged Friday on disappointing quarterly results from Dell and weak economic data. The Asian markets are sharply lower on Monday, led by technology stocks. However, the major European index futures are mixed. While the FTSE 100 and CAC 40 futures are showing strength, DAX futures are showing slight weakness. Additionally, some degree of profit taking can be anticipated following four days of gains for the European markets.

Oil prices are higher in the Asian session Monday, as Hurricane Gustav approached the Gulf of Mexico. Brent North Sea crude futures were up 88 cents at $114.93 a barrel by 11:56 p.m. ET after the contract shed 12 cents to settle at $114.05 a barrel on Friday on London’s ICE Futures Europe exchange.

On Friday, the Dow closed down 1.5% at 11,544, the Nasdaq lost 1.8% to 2,367 and the broader S&P 500 dropped 1.4% to finish at 1,282. In Asia Monday, Australia’s All Ordinaries index is losing 0.6%, China’s Shanghai composite index is down 2.6%, Japan’s Nikkei 225 index is declining 1.5%, South Korea’s KOSPI is plunging 3.4% and Hong Kong’s Hang Seng index is down 1.7%.

The major economic data scheduled for release in the European region include the German retail sales and the purchasing manager index, the Euro-Zone purchasing manager index, the Swiss SVME purchasing managers index, the French Purchasing Manager index, and the U.K. mortgage approvals, M4 money supply, and net consumer credit. The U.S. market will remain closed on Monday on account of Labor Day holiday.

The European markets closed higher for the fourth day on Friday after Carrefour and PPR reported earnings that topped analysts’ forecasts. The FTSEurofirst 300 index of pan-European blue chips closed up 0.32% at 1,194 and the narrower DJ Stoxx 50 index rose 0.14% to 2,915. Around Europe, the U.K.’s FTSE 100 index climbed 0.63% to 5,636, France’s CAC 40 index gained 0.47% to 4,482 and Germany’s DAX index edged up 0.03% to 6,422.

On the currency front, the euro dropped to a new multi-month low of 159.30 against the yen and a new multi-day low of 1.4650 against the U.S. dollar, but it rose to a new record high of 0.8139 against the pound in the Asian session Monday.

In the European markets, Boiron may rise after the homeopathic drugmaker said that first- half net profit more than doubled to EUR 12.5 million and Commerzbank is likely to move after Germany’s second-largest lender agreed to buy Allianz SE’s Dresdner Bank for EUR 9.8 billion.

Deutsche Post may react to (DPW GY): CEO Frank Appel’s statement that a U.S. congressional hearing in September would not threaten the cooperation between its DHL Express unit and United Parcel Services, while Ericsson may decline after reports indicated that Sony Ericsson Mobile Communications’ Xperia X1 mobile phone, the model intended to compete with Apple’s iPhone, may not be sold before Christmas.

Fiat may see downside on the back of the release of new-car sales figures by the Transport Ministry. Nestle, the world’s largest food company is scheduled to hold a presentation with investors in London.

OC Oerlikon may lose ground after Uwe Krueger, chief executive officer, said that orders for textile machinery have dropped 50% on a decline in demand in its three main markets.

Taylor Wimpey, U.K.’s largest homebuilder, may react to reports that the company will launch a campaign among institutional investors this week to broaden its shareholder base in order to raise capital.

WPP Group may move after the second biggest advertising company in the world extended the deadline of its unsolicited takeover offer for Taylor Nelson Sofres. Vivendi and GDF Suez are scheduled to report earnings.

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Posted in Categories: Australia, Economy, Eurozone, Japan, Releases, Switzerland, USA.

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