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European Shares Seen Tracking Losses in US, Asia

Reuters
Monday, 1 Sep 2008 | 1:30 AM ET

European shares were expected to fall on Monday, tracking losses in U.S. and Asian stocks as Dell's warning on corporate technology spending continued to hit tech stocks while investors fretted about the impact of Hurricane Gustav.

Financial bookmakers, or spread betters, in London expected Britain's FTSE 100 index to open between 42 and 47 points lower, the German DAX 30 to 41 points lower, and the French CAC 40 20 to 29 points lower.

"The combination of a holiday weekend and the accompanying uncertainty of the impact of Hurricane Gustav's arrival on the US Gulf Coast unsurprisingly pushed Wall Street lower ahead of Friday's close and as a result we're expecting to see this cautious sentiment carry over into Europe as the new month's trading gets underway," Matt Buckland, dealer at CMC Markets, wrote in a note.

Oil prices rose more than $1 on Monday after energy firms in the U.S. Gulf shut down nearly all offshore oil output and a host of flood-prone coastal refineries ahead of Hurricane Gustav, the biggest threat since 2005's devastating Katrina.

U.S. markets will remained close on Monday for Labor Day.

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