(Adds company items, updates snapshot)
PARIS, Jan 22 (Reuters) - European stocks were set to fall on Tuesday,
adding to the previous session's sharp declines, as an equities sell-off
triggered by mounting fears of a U.S. recession continues to hammer stock
markets worldwide.
Japanese shares fell more than 5 percent to a 28-month low, while Australian
stocks sank 7 percent and Indian shares pared declines after losing 11.5 percent
in early trade on Tuesday.
Financial bookmakers, or spread betters, in London expected Britain's FTSE
100 <> index to open between 30 and 43 points lower, the German DAX
<> 32 to 47 points lower and the French CAC 40 <> 33 to 47 points
lower.
European shares sank 6 percent on Monday, their biggest one-day slide since
the Sept. 11, 2001 attacks, as worries over the prospect of a U.S. economic
downturn and fears of more write-downs in the financial sector sent investors
running for cover.
"Expectations are for further downside to be seen at the open for the major
European markets and although after a run of selling there's usually the
potential for a rebound as the bargain hunters move in, today's picture is a
skewed by the fact Wall Street was shut yesterday so the first thing traders
across the Atlantic will need to do is catch up," said Matt Buckland, trader at
CMC Markets.
The FTSEurofirst 300 <> index of top European shares has already lost
15 percent since the start of 2008, and is down nearly 22 percent from its
52-week high reached last summer. Many analysts consider a fall of 20 percent
from a peak as signalling a bear market.
U.S. stocks reopen on Tuesday after being closed for a holiday on Monday.
----------------------MARKET SNAPSHOT AT 0656 GMT----------------------
LAST PCT CHG NET CHG
S&P 500 <.SPX> 1,325.19 -0.6 % -8.06
NIKKEI <> 12,573.05 -5.65 % -752.89
MSCI ASIA EX-JP <.MIASJ0000PUS> 509.00 -6.25 % -33.94
EUR/USD <EUR=> 1.4415 -0.21 % -0.0031
USD/JPY <JPY=> 106.03 0.08 % 0.0900
10-YR US TSY YLD <US10YT=RR> 3.551 -- -0.09
10-YR BUND YLD <EU10YT=RR> 3.910 -- 0.00
SPOT GOLD <XAU=> $857.30 -1.00 % -$8.70
BRENT CRUDE <LCOc1> $86.79 -0.68 % -$0.7
-----------------------------------------------------------------------
* Asian stocks hammered; investors flee to bonds []
* Nikkei down 5.7 pct, biggest 1-day loss since 9/11[]
* Gold hits fresh 2-week low as stocks dive []
* Yen hits 2-1/2-year high vs dollar as stocks slide []
* Bonds surge in Asia as Fed intermeeting cut eyed []
* Oil extends fall toward $88 on economy worries []
COMPANY ITEMS
ROCHE <ROG.VX>
Roche has agreed to buy Ventana Medical Systems Inc <VMSI.O> for $3.4
billion to boost its diagnostics business, the Swiss drugmaker said on Tuesday,
raising its earlier bid.
For related news, click on []
BAYER <BAYG.DE>
Bayer and Onyx Pharmaceutical Inc's <ONXX.O> key cancer drug Nexavar
significantly raises the risk of high blood pressure, U.S. researchers said on
Tuesday in the journal Lancet Oncology.
For more on this, double click on: []
EADS <EAD.DE>
Airbus has won orders worth more than $6 billion at list prices from
Brazilian airline Tam, including a firm contract for 22 A350 XWBs.
For more on this, double click on: []
BHP BILLITON <BLT.L>, RIO TINTO <RIO.L>
BHP Billiton (BHP) is due to issue its second-quarter trading update.
BHP is unlikely to increase its $130 billion unsolicited proposal to acquire
mining rival Rio Tinto by a Feb. 6 deadline, The Wall Street Journal reported on
Monday.
Separately, BHP said it expects its coking coal operations in Australia's
Queensland state to be affected for several months due to recent heavy rains,
potentially putting more upward pressure on prices.
SCHNEIDER <SCHN.PA>
French electrical engineering group Schneider Electric on Tuesday posted
2007 like-for-like sales growth of 13.9 percent, slightly ahead of market
expectations, and confirmed its growth target for this year.
For more on this, double click on: []
WENDEL <MWDP.PA> SAINT-GOBAIN <SGOB.PA>
French investment group Wendel said on Monday it still believed in the
potential of the building materials group after shares in both companies fell in
a wide global market sell-off.
For more on this, double click on:[]
MUNICH RE <MUVGn.DE>
Munich Re has reduced its investment portfolio allocation to equities to
just over 10 percent from over 30 percent in recent years, the Sueddeutsche
Zeitung newspaper reported, quoting Munich Re's CFO.
For more on this, double click on:[]
NORTHERN ROCK <NRK.L>
The government's Northern Rock rescue plan looks doomed from the start due
to hidden charges of up to 1 billion pounds, a senior City figure has warned,
reported the Daily Mail.
RENAULT <RENA.PA>
The Renault-Nissan <7201.T> alliance on Monday signed a deal to begin mass
producing electric cars as part of an Israeli-led project to develop alternative
energy sources and slash oil dependency.
For more on this, double click on: []
TELECOM OPERATORS
The European Union's telecoms chief is investigating a report that many
operators are abusing the bloc's new rules for using mobile phones abroad by
overcharging customers by a typical 20 percent.
For more on this, double click on: []
AHOLD, SCHUITEMA <AHLN.AS> <SUTN.AS>
Ahold said on Monday it was in talks with British private equity firm CVC
Capital Partners [] about divesting its majority stake in Schuitema.
For more, double click on [] []
BARRY CALLEBAUT <BARN.S>
Barry Callebaut, the world's largest chocolate maker, posted a
forecast-beating 22 percent rise in first-quarter sales on Tuesday, but warned
margins could face pressure due to high raw material prices.
For related news, click on []
(Reporting by Blaise Robinson; Editing by Quentin Bryar)
