BUZZ-European stocks and China: industrials next to feel the pinch
** Slump in China exports dominating discussion in European equities on Monday, but heavily depressed valuations in China-exposed stocks means industrial names could be most sensitive to further weakness, rather than more obvious names in mining and luxury that have already de-rated heavily
** China's July exports slump 8 pct v a 1 pct fall forecast
** Citi screens for stocks with > 25 pct Asia Pac exposure, negative earnings momentum and on 2x P/B
** Includes Richemont and Swatch but industrials dominant, with ABB (NYSE: ABB - news) , Alfa Laval (Stockholm: ALFA.ST - news) , Rolls Royce (LSE: RR.L - news) , Schindler and Wartsila all present
** SCS, Ericsson (Xetra: ERCA.DE - news) and Givaudan also mentioned. Chart: http://link.reuters.com/nyb45w
** Companies with China revenues > 15 pct fall into 4 broad categories with UK-listed miners (BHP Billiton (NYSE: BBL - news) , Glencore (Amsterdam: GX8.AS - news) , Anglo American (LSE: AAL.L - news) , Rio Tinto (LSE: RIO.L - news) ) well represented
** Luxury consumer goods (Burberry, LVMH, Richemont, Swatch, Pernod Ricard (Paris: FR0000120693 - news) ) derive 15-40 pct revenues from China
** Asian-focussed UK banks (Standard Chartered (HKSE: 2888.HK - news) , HSBC ) and European tech stocks (ARM, Infineon , STMicro ) other noticeable themes
** However, China-exposed stocks trading close to 15-year relative P/B lows, with commodities in particular at extreme levels. Chart: http://link.reuters.com/jyb45w (RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)