European stocks set to rebound from sell-off

PARIS (BestGrowthStock) – European stocks were seen rebounding from nine-month lows on Wednesday, tracking Wall Street’s strong late rally off the session’s lows that helped the main U.S. indexes close largely unchanged.

But the tentative stock rebound could be limited by lingering fears that the euro zone debt crisis could slow the flow of credit and hit the banks.

Financial spreadbetters expect Britain’s FTSE 100 (.FTSE: ) to open 84 to 89 points higher, or as much as 1.8 percent, Germany’s DAX (.GDAXI: ) to open 86 to 91 points higher, or as much as 1.6 percent, and France’s CAC-40 (.FCHI: ) to open 71 to 76 points higher, or as much as 2.3 percent.

The euro lost ground on Wednesday, falling back toward a four-year low against the dollar and an 8-1/2-year trough against the yen, dragged lower by worries over the euro zone’s banking sector.

The FTSEurofirst 300 (.FTEU3: ) index of top European shares has tumbled 15 percent over the past six weeks — with bourses in Southern Europe like Milan, Madrid, Lisbon and Athens already in bear territory — as investors rushed for safety on fears the Greek debt crisis could spread to other euro zone countries, spark a credit crunch and undermine the global economic recovery.

Late on Tuesday, Italy joined Europe’s push for fiscal austerity with 24 billion euros of deficit-reducing cuts that target public workers and local government.


BP (BP.L: )

BP told congressional investigators on Tuesday that pressure tests on a drill pipe showed a fundamental mistake hours before the deadly explosion that caused the Gulf of Mexico oil leak, a memo released by two congressmen showed.


The U.S. Defense Department gave EADS’ North American arm a clean bill of health Tuesday after rival Boeing Co (BA.N: ) raised national security concerns in their contest for a potential $50 billion U.S. Air Force tanker contract.


Germany is suspending its 3 billion euro ($3.7 billion) purchase of EADS’s Tiger attack helicopter due to technical problems, potentially delaying delivery to its forces in Afghanistan until end-2011. An internal ministry report obtained by Reuters on Tuesday said the step was being taken because of serious problems with the wiring of the helicopter built by EADS unit Eurocopter.

(ID:NLDE64O0U1: )


The global miner on Wednesday predicted strong iron ore demand to continue and gave an upbeat outlook for aluminum, defying sharp slides in commodity prices and fears of a double-dip global recession.


The French utility has set June 21 as the deadline for financed offers in the sale of its British power grids, two people familiar with the matter said.


The carmaker confirmed it has chosen Spain over Poland or Turkey to build new car models. The group plans to invest 1.06 billion euros in the operation, including a previously announced investment of 660 million euros.


Germany’s Bayer (BAYGn.DE: ) has again lost its bid to have liver cancer drug Nexavar paid for on Britain’s state health service, after the cost watchdog NICE rejected it as too expensive, despite a special offer.


Bondholders approve the plan to split the hotel and prepaid services company. The services unit will be listed on July 2 in Paris if shareholders approve the one-for-one share split at a meeting on June 29.


The world’s largest cement maker is to combine its Central European cement activities with Austrian builder Strabag (STRV.VI: ), seeking to capitalize on each other’s presence in the construction sector.


The drugmaker announced a strategic alliance agreement with the Massachusetts Institute of Technology Center for Biomedical Innovation to be known as the sanofi-aventis Biomedical Innovation Program. (SASY.PA-LEN-RTRS: )

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(Reporting by Blaise Robinson)

European stocks set to rebound from sell-off