A look at the day ahead in European and global markets from

Kevin Buckland

The global equity sell-off looks set to extend into Europe

on Thursday although the region may be spared the carnage in

parts of Asia, where Japan's Nikkei tumbled as much as

3% and Hong Kong's Hang Seng slumped close to 2%.

Earnings this week from the likes of Alphabet and Tesla have

not supported the market's sky-high tech valuations, sending not

just mega-cap stocks but all of Wall Street sliding back to

earth from near-record peaks.

Japan's exporter-heavy equity market was hit particularly

hard by a reversal in the yen, which has rebounded to about 152

per dollar from a three-decade trough near 162 yen per dollar

around the start of this month.

The yen has regained its safe-haven appeal right when

traders were bailing out of short yen positions, amid a barrage

of suspected currency interventions by Tokyo and before crucial

policy decisions by the Bank of Japan and Federal Reserve, both

on July 31.

Meanwhile, ailing Chinese markets continue to take a

beating. Beijing's latest surprise rate cut on Thursday only

stoked worries about the economy, rather than shoring up

sentiment.

The more muted performance of European stocks relative to

Wall Street and Japan over the past couple months means there's

less froth to come off the top, potentially leading to a

shallower sell-off.

But there are plenty of risk events to brace for as earnings

season gathers momentum. From drugmakers AstraZeneca ( AZN ) and

Sanofi to Stellantis ( STLA ) and BAT, a

wide swath of industry giants report on Thursday.

Nestle will be one to watch, particularly if you're

a fan of KitKat or Smarties. The company may be set to hike

prices again in the run-up to Halloween and Christmas, after

ruling out changing recipes as a way to deal with soaring cocoa

prices.

Hermes merits attention as well, after earnings at

LVMH and Gucci-owner Kering were battered by

flagging Chinese demand.

Clues to the overall business environment around Europe will

also be offered in surveys from France, Germany and the UK.

Key developments that could influence markets on Thursday:

-France business climate (July), Germany Ifo business

climate (July), UK CBI business optimism (Q3)

-Earnings from AstraZeneca ( AZN ), BAT, Hermes

, Nestle, Sanofi, Stellantis ( STLA )