LONDON, March 27 (Reuters) - European shares were expected to fall at the
open on Thursday, tracking overnight losses in U.S. stocks, as German investment
bank Hypo Real Estate (HRXG.DE: Quote, Profile, Research) warned it may miss its 2008 profit goal in the
face of "further serious turmoil" in global markets. At 0746 GMT, the June Stoxx50 futures STXEM8 were down 0.3 percent, DAX
futures FDXM8 down 0.2 percent and CAC-40 April futures FCEc1 were down 0.3
percent. Financial bookmakers saww Britan's FTSE 100 .FTSE opening down 18 to 23
points. "The market action over the last 2-3 days for me feels like consolidation.
The market saw a huge surge upward and traders and investers are now digesting
the move and contemplating," said Tom Hougaard, chief market strategist at City
Index. European equities surged 3 percent on Tuesday but a tumble in Xstrata
(XTA.L: Quote, Profile, Research) after takeover talks with Brazil's Vale (VALE5.SA: Quote, Profile, Research) (RIO.N: Quote, Profile, Research) collapsed,
and ongoing credit worries, pushed the FTSEurofirst 300 index lower in
the previous session. "I suspect we could see some more back-and-forth trading today and then
finish the week with another buying surge," Hougaard added. Data showing a tumble in orders for U.S.-manufactured goods on Wednesday
revived concerns that the economy is already in recession while bank stocks took
a hit when a prominent analyst lowered her first-quarter profit forecasts for
various major U.S. banks. U.S. core PCE data for the fourth quarter, the Fed's favourite inflation
gauge, is due at 1230 GMT and will come in focus after last week's steep
75-basis-point U.S. rate cut.
Pavouk
