European Stocks Set To Follow Asia Lower

(RTTNews) - European stocks may open slightly subdued on Monday, reflecting declines in Asian stocks and commodities as mounting tensions in Ukraine and concerns about the Chinese credit markets and economic outlook prompted investors to seek shelter in safe-haven assets. The economic calendar for the day is relatively quiet, with investors awaiting Eurozone investor confidence and Swiss retail sales data for further direction.

A group of Russian soldiers attacked the Chernomorskoe border post and detained Ukrainian border guards amid the ongoing standoff, reports suggest. Russian Prime Minister Vladimir Putin defended Crimea's seizure and breakaway moves by pro-Russian leaders in Crimea, saying that he was acting "based on international law and aimed at guaranteeing the legitimate interests of the peninsula's population."

German Chancellor Angela Merkel told Putin on Sunday that she considered a planned Moscow-backed referendum on whether Crimea should join Russia was illegal and violated Ukraine's constitution.

The Asian markets are falling sharply, with Japan's Nikkei index losing a percent and the benchmark indexes in China and Hong Kong falling 2-3 percent, as weaker-than-estimated Chinese trade and inflation data stoked fresh concerns about the health of the world's second-largest economy.

China's exports unexpectedly tumbled by 18 percent last month, swinging the trade balance into deficit of $22.98 billion, official figures showed.

Separately, China's consumer price inflation rose 2 percent in February from a year earlier, a 13-month low and down from 2.5 percent in January amid cooling demand, the National Bureau of Statistics reported.

Chinese short-term rates and the yuan fell after the People's Bank of China cut the yuan fixing rate by 0.18 percent to 6.1312 per dollar, suggesting a possible policy push to boost exports. Elsewhere, the Japanese economy expanded 0.2 percent in the quarter to December and 1.5 percent through 2013, revised data showed, coming in slightly weaker than previously estimated.

Back home, Moody's raised its credit outlook for the Netherlands and Belgium to stable from negative, citing reduced risks for the euro area's economies.

European Central Bank Executive Board member Yves Mersch called for a uniform application of prudential filters in upcoming bank stress tests, saying the tests should not be diluted by national interests. The tests are part of a "comprehensive assessment" to make the banking sector more resistant over long term, before the ECB take over responsibility as supervisor in November, he said.

The British Chambers of Commerce (BCC) now believes the British economy will expand 2.8 percent this year, faster than the 2.7 percent growth it had predicted in December, supported mainly by household consumption and output from services. Quarterly growth is forecast at 0.7 percent in the first quarter, while the outlook for 2015 has been revised up to 2.5 percent from 2.4 percent.

In corporate news, Hochtief, which currently holds a 58.77 percent stake in Leighton, proposed to raise its holding in the Australian builder to 74.23 percent through a A$1.155 billion off-market offer.

French conglomerate Bouygues SA is seeking to sell part of its mobile phone network and a portfolio of frequencies to smaller peer Ilaid SA's Free in a deal valued at up to 1.8 billion euros or $2.5 billion, its chief executive said.

Dutch food and cosmetics giant Unilever bought a majority stake in Chinese water purification company Qinyuan Group for an undisclosed amount.

Symrise AG, a supplier of fragrances, flavorings, cosmetic active ingredients, reported a 9 percent increase in fiscal 2013 net income to 172 million euros from 158 million euros in the previous year.

SGL Group, a manufacturer of carbon-based products and materials, reported consolidated net loss attributable to equity holders of 396.4 million euros, compared with a profit of 5.9 million euros in 2012.

European stocks fell sharply on Friday on fears the Ukraine crisis could escalate after Russian leader Vladimir Putin condemned the new government in Ukraine as stemming from an "anti-constitutional coup" and said Russia was "unable to ignore" requests for protection from the Crimea. The German DAX tumbled 2 percent, France's CAC 40 lost 1.2 percent and the U.K.'s FTSE 100 index declined 1.1 percent.

U.S. stocks ended on a lackluster note Friday, failing to sustain an initial upward move as lingering tensions in Ukraine tempered the excitement over the upbeat jobs report. The Dow rose 0.2 percent and the S&P 500 edged up 0.1 percent to a fresh record high, while the tech-heavy Nasdaq slid 0.4 percent.