(Adds futures, company news; updates snapshot table)
PARIS, March 28 (Reuters) - European stock index futures dipped on Monday, as rekindled worries over Japan's crippled nuclear plant and ongoing violence in the Arab world prompted investors to take a breather after last week's recovery rally.
Shares in German renewable energy companies were seen rising while stocks of utilities using nuclear energy were seen retreating after Chancellor Angela Merkel's conservatives lost power in a regional stronghold on Sunday, with early poll results showing the Greens, buoyed by Japan's nuclear crisis, surging to their first state premiership. [ID:nLDE72Q0E6]
By 0625 GMT, futures for Euro STOXX 50 (STXEc1: Quote, Profile, Research) were down 0.28 percent, for Germany's DAX (FDXc1: Quote, Profile, Research) down 0.38 percent and for France's CAC (FCEc1: Quote, Profile, Research) down 0.04 percent.
"Traders are starting the week cautiously as the sharp rebound from the mid-March lows begins to lose steam and several negative cues still stalk the market," Capital Spreads dealer Jonathan Sudaria said in a note.
Japan's Nikkei average (.N225: Quote, Profile, Research) fell 0.6 percent on Monday after weekend reports of soaring radiation levels at the damaged nuclear plant, adding to concerns over disrupted supply chains and power cuts already weighing on corporate earnings in the wake of the country's massive earthquake and tsunami. [.T]
In Libya, rebels pushed west over the weekend to retake a series of towns from the forces of Muammar Gaddafi who have been pounded by Western air strikes, while in Syria, President Bashar al-Assad deployed the army in the country's main port of Latakia for the first time after nearly two weeks of protests spread across the country. [ID:nLDE72Q0C3]
"The popular uprisings in the Middle East are ... raising the question of whether coalition military activity will be pressured to spread beyond the existing activity in Libya," IG Markets strategist Ben Potter said in a note.
"Despite this, both gold and oil prices remain in check so this could at least suggest that we won't see any quick flight to safety by investors, although it does seem likely that confidence will remain somewhat lacking in the shorter term."
Last week, European shares recorded their biggest weekly gain in six months, as investors grew increasingly confident that Japan's nuclear crisis and Middle East unrest would not derail global growth.
The state election rout for Merkel's conservatives has also weighed on the euro and German goverment bonds. [ID:nLDE72Q0E6]
"Having lost two elections in a row in areas where there is normally strong support there must be doubts about whether Merkel's policy on Europe has the support of the German people and this could call into question Germany's role as Europe's cash machine with respect to the bailout fund and any future agreements," CMC Markets analyst Michael Hewson wrote in a note.
----------------------MARKET SNAPSHOT AT 0630 GMT------------------
LAST PCT CHG NET CHG
S&P 500 (.SPX: Quote, Profile, Research) 1,313.80 0.32 % 4.14
NIKKEI (.N225: Quote, Profile, Research) 9,478.53 -0.6 % -57.6
MSCI ASIA EX-JP (.MIASJ0000PUS: Quote, Profile, Research) 556.77 -0.40 % -2.24
EUR/USD (EUR=: Quote, Profile, Research) 1.4058 0.09 % 0.0012
USD/JPY (JPY=: Quote, Profile, Research) 81.71 0.47 % 0.3800
10-YR US TSY YLD (US10YT=RR: Quote, Profile, Research) 3.467 -- 0.03
10-YR BUND YLD (EU10YT=RR: Quote, Profile, Research) 3.305 -- 0.01
SPOT GOLD (XAU=: Quote, Profile, Research) $1,423.69 -0.28 % -$4.06
US CRUDE (CLc1: Quote, Profile, Research) $105.08 -0.30 % -0.32
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GLOBAL MARKETS-Euro slips after German election [ID:nL3E7ES03W]
Oracle drives Wall St higher; volume stays weak [ID:nN25284647]
Nikkei falls; nuclear concerns dictate mood [ID:nL3E7ES05E]
Euro pressured by more bad news; dollar firmer [ID:nL3E7ES039]
Brent steady near $116; Middle East unrest in focus [ID:nL3E7ES07Y]
Gold steady on Mideast, Japan woes; Fed comments weigh [ID:nL3E7ES047]
LME copper falls, ShFE down; equities, demand weigh [ID:nL3E7ES079]
COMPANY NEWS:
GERMAN ENERGY STOCKS
Shares in German renewable energy companies were seen rising while stocks of utilities using nuclear energy were seen retreating after Chancellor Angela Merkel's conservatives lost power in a regional stronghold on Sunday, with early poll results showing the Greens, buoyed by Japan's nuclear crisis, surging to their first state premiership. [ID:nLDE72Q0E6]
RWE (RWEG.DE: Quote, Profile, Research), E.ON (EONGn.DE: Quote, Profile, Research)
German utilities may file damage claims against the government's decision to close seven of the country's 17 nuclear plants, following the crisis in Japan, German magazine Spiegel reported on Saturday. [ID:nLDE72P06F]
AXA (AXAF.PA: Quote, Profile, Research)
The Japanese earthquake is seen costing Europe's second-biggest insurer at least 100 million euros before tax, Chief Executive Henri de Castries told French television on Sunday. [ID:nLDE72Q0HI]
COMMERZBANK (CBKG.DE: Quote, Profile, Research), DEUTSCHE BANK (DBKGn.DE: Quote, Profile, Research)
Regulators agreed on Friday to a deal allowing "silent participation", a controversial form of hybrid capital, to count as core capital in the next round of stress tests, clearing the way for German banks Commerzbank and WestLB to pass the exam. [ID:nLDE72O0GN]
VOLKSWAGEN (VOWG_p.DE: Quote, Profile, Research), PORSCHE (PSHG_p.DE: Quote, Profile, Research)
Debt-laden carmaker Porsche SE has approved an almost 5 billion euro ($7 billion) capital increase, clearing the way for a merger with Volkswagen (VOWG_p.DE: Quote, Profile, Research), the group said late on Sunday.
Porsche said it had fixed the subscription price for the new ordinary and preferred shares -- which will have dividend rights as of Aug. 1, 2010 -- at 38 euros apiece, and the subscription ratio between the two share classes at 1:0.75. [ID:nLDE72Q0IH]
FRANCE TELECOM (FTE.PA: Quote, Profile, Research), DEUTSCHE TELEKOM (DTEGn.DE: Quote, Profile, Research)
Deutsche Telekom and France Telecom want to cut costs by combining their operations in Austria and Romania, a German newspaper reported on Sunday, citing management sources at the French provider. [ID:nLDE72Q0EX]
SPANISH BANKS
Monday is the deadline for Spain's unlisted savings banks to put forward their plans of how to raise their capital to tough new minimum levels to the Bank of Spain. These plans can include stock market listings, private equity investment or an application for state funds. For a story, click on [ID:nLDE72P08D]
ASTRAZENECA (AZN.L: Quote, Profile, Research)
The company said on Monday that British and U.S. authorities had reached an agreement over its tax affairs in a move that would boost its earnings per share in 2011. [AZN.L-E]
RIO TINTO (RIO.L: Quote, Profile, Research)
Investors are betting global miner Rio Tinto (RIO.AX: Quote, Profile, Research) will settle for a minority stake in Africa-focused Riversdale Mining (RIV.AX: Quote, Profile, Research) after its A$3.9 billion ($4 billion) takeover bid failed to secure control of the firm just hours away from the offer deadline. [ID:nL3E7ES02L]
SIEMENS (SIEGn.DE: Quote, Profile, Research)
Europe's biggest engineering conglomerate will create a fourth division which will have total sales of 21 billion euros from environment-related activities it will bundle in that new segment, Frankfurter Allgemeine Zeitung said on Friday, citing sources.
NOKIA (NOK1V.HE: Quote, Profile, Research)
The Finnish phone maker lost the first round in a patent fight with Apple on Friday as a U.S. trade panel judge ruled that Apple did not violate any of five Nokia patents. In its complaint, Nokia asked the trade panel to bar the importing of Apple devices that infringe Nokia patents, citing in particular the iPhone 3GS mobile phone and iPod Nano portable music player. Nokia said it was taking a wait-and-see attitude toward the ITC ruling in its fight with Apple. [ID:nN25168697]
TELEFONICA (TEF.MC: Quote, Profile, Research)
Brazilian Telefonica unit Telesp will take over mobile carrier Vivo (VIVO4.SA: Quote, Profile, Research) in a share swap, Telesp said in a securities filing late on Friday. For a story, click on [ID:nN26104120]
PARMALAT (PLT.MI: Quote, Profile, Research)
The Ferrero food group has walked away from a possible Italian consortium for the dairy company, Il Messaggero said on Sunday without citing sources. Bank Intesa Sanpaolo (ISP.MI: Quote, Profile, Research) is looking to create another Italian group that could include dairy company Granarolo and the Venice European Investments fund of Palladio and Assicurazioni Generali (GASI.MI: Quote, Profile, Research), the paper said.
Prosecutors are investigating months of share movement in the dairy company that includes foreign funds' sale of holdings to France's Lactalis, newspapers said on Saturday.[ID:nLDE72P01Y]
(Reporting by Blaise Robinson)
Europe Factors-Shares set to dip; German energy sector eyed
