European Stocks Seen Down on UBS Warning
European stocks were seen retreating on Monday on renewed concerns over the outlook for banks after UBS warned it will post a pretax loss of between 600 million and 800 million Swiss francs in the third quarter as it writes down positions.
Financial bookmakers, or spread betters, in London expected Britain's FTSE 100 index to open between 12 and 13 points lower, the German DAX 5 to 7 points lower and the French CAC 40 5 to 7 points lower.
Trouble in the U.S. subprime mortgage market as well as a lack of liquidity on interbank markets and difficulties for some banks trying to raise short-term funds have dampened shares of financial institutions over the past months.
The FTSEurofirst 300 index of top European shares closed 0.04% lower on Friday, at 1,550.89 points. The index finished the third quarter with a loss of 3.4%, its first quarterly loss since the second quarter of last year.