LIVE MARKETS-Before the bell: Europe tracks lower, led by defence

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BEFORE THE BELL: EUROPE TRACKS LOWER, LED BY DEFENCE

European shares were set for a weaker start on Tuesday as investors turned cautious ahead of a slate of U.S. jobs data that could shape rate expectations and after fresh pressure on bitcoin sent the cryptocurrency tumbling to a two-week low.

Defence stocks, among the best performers in Europe this year, could come under fire as investors eyed progress in talks over Ukraine. The United States offered NATO-style security guarantees for Kyiv to help end Russia's war, but a deal on territorial concessions remained elusive.

Euro STOXX 50 and DAX futures fell 0.5%-0.7%, while FTSE contracts slipped 0.3%, broadly unchanged after data showed British annual wage growth slowed to 4.6%, two days before the Bank of England is expected to cut rates.

Traders called European defence plays down 2%-5%.

Among other potential movers, AstraZeneca AZN.L could find support after the U.S. FDA approved its and partner Daiichi Sankyo's 4568.T breast cancer drug as a first-line treatment.

French biotech firm Abivax ABVX.PA, recently at the centre of takeover speculation, reported an operating net loss of around 174 million euros in the first nine months.

Autos .SXAP remained in focus, with the EU Commission set to backtrack on the EU's ban on new combustion-engine cars from 2035 by allowing up to 10% of non-electric vehicles.

In M&A, Holcim HOLN.S paid $550 million for a majority stake in Peruvian materials maker Cementos Pacasmayo CPACASC1.LM.

(Danilo Masoni)

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