European Shares Seen Edging Lower, Eyes on UBS
European stocks were seen edging lower on Monday, snapping a three-session winning run as hopes of a bold U.S. interest rate cut on Tuesday faded following slightly stronger-than-expected monthly jobs data.
Banking shares will be in the spotlight after Swiss bank UBS said it had made a 13 billion Swiss franc ($11.48 billion) issue of fresh capital to be placed with a Singapore government investment entity and an undisclosed Middle East investor and announced a further $10 billion writedown in subprime exposure.
Mining stocks could continue to rally, lifted by a report in the Daily Telegraph newspaper that Investment group Blackstone is planning a counterbid for Rio Tinto with a consortium believed to include a Chinese sovereign wealth fund.
Financial bookmakers, or spread betters, in London expected Britain's FTSE 100 index to open between unchanged and down 4 points, the German DAX down 7 to 9 points and the French CAC 40 down 4 to 8 points.
"The mining sector can expect to remain squarely in focus after news of a possible private equity bid for Rio Tinto was noted," Matt Buckland, trader at CMC Markets, wrote in a note.
The FTSEurofirst 300 index of top European shares closed 0.7 percent higher on Friday, at 1,538.51 points, as heavyweight mining shares including Xstrata soared on market talk of consolidation in the sector.
The Fed is widely expected to cut rates by a quarter point to 4.25 percent on Tuesday to shield the economy from the housing slump and a turbulent credit market.