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MILAN, Jan 26 (Reuters) - European shares were expected to open lower on Tuesday, extending a drop seen in the previous session, following losses in Asia overnight and as oil prices continued to tumble.
Futures on the Euro STOXX 50, German DAX, French CAC and Britain's FTSE were all down by between 1.2-1.6 percent by 0711 GMT.
Asian shares retreated on Tuesday, with fears of a global economic slowdown showing no sign of abating as oil prices plunged on new worries about oversupply by top producers.
On Monday, the pan-European FTSEurofirst 300 index ended down 0.7 percent.
Shares in Siemens were expected to open higher after Europe's biggest industrial group raised its full-year earnings forecast on strong first-quarter results.
Philips could also be in focus after the Dutch maker of LED lights and medical scanners reported core fourth-quarter earnings ahead of expectations but issued a cautious outlook for 2016.
Europe's biggest industrial group raised its full-year earnings-per-share forecast on Monday after beating market expectations for first-quarter industrial profit, revenue and orders.
Siemens also agreed to buy U.S. engineering software firm CD-adapco for $970 million, it confirmed on Monday, beefing up its core industrial business with the latest in a string of acquisitions in the area.
Moody's downgraded Deutsche Bank's long-term debt to Baa1 from A3, with a negative outlook, citing near-term challenges of the lender's new strategic plan.
Financial services firms must take advantage of rock bottom interest rates to make investments and takeovers and rethink business models, the chief executive of German exchange operator Deutsche Boerse said on Monday.
Munich Re raised its stake in joint venture Apollo Munich Health Insurance to 48.75 pct from 23.37 percent for 22.3 million euros.
Germany's biggest residential property company extended the takeover deadline and lowered the acceptance threshold on its offer for Deutsche Wohnen. The threshold has been lowered to 50 percent from 57 percent on an undiluted basis.
GlaxoSmithKline Plc is concluding feasibility studies evaluating whether its vaccine technology is suitable for the Zika virus, which has been linked to brain damage in thousands of babies in Brazil, a spokeswoman told Reuters.
Vodafone Qatar, an affiliate of Vodafone Group, reported on Tuesday a 72.2 million riyal ($19.8 million) net loss in the third quarter, which is 5 percent wider than the same year-ago period, Reuters calculations showed.
The Dutch maker of LED lights and medical scanners reported core fourth-quarter earnings ahead of expectations but issued a cautious outlook for 2016.
French carmaker PSA Peugeot Citroen could convene a board meeting to discuss business opportunities in Iran on Wednesday, a source close to the company said ahead of a two-day visit by Iranian President Hassan Rouhani.
ArcelorMittal has idled a steel plant in Spain due to "extremely adverse" market conditions, a company spokesman said on Monday, as the world's biggest steelmaker becomes the latest victim of Europe's steel sector crisis.
French energy market regulator CRE will decide by the end of May on new regulated tariffs that utility EDF can charge household clients whose consumption is below 36 kilowatts/hour (kVA), the head of the energy watchdog said on Monday.
The oil company said on Monday it had sold the remained of its piped gas business in Spain to EDP Group and Gas Extremadura for 136 million euros ($147 million), generating a capital gain of 76 million euros.
Renewable energy and engineering company Abengoa said late on Monday its board had agreed to press ahead with a debt restructuring and asset sales, as it races to avoid becoming Spain's biggest bankruptcy.
Banca Popolare di Milano has ruled out the idea of a three-way tie-up involving Banca Monte dei Paschi di Siena, according to comments attributed to the lender's CEO on Monday and later confirmed by a spokeswoman.
Bank of Italy Director General Salvatore Rossi said one should look at fundamentals of banks which are encouraging and show solidity, not at stock price moves.
Shares in Italian banks closed sharply lower on Monday, with analysts saying the sector would remain volatile until Italy achieved concrete progress in negotiations with the European Union over the management of bad loans.
Saipem signed a memorandum of understanding on Monday to cooperate on major oil and gas projects in Iran, as the Italian oil contractor's giant 3.5 billion-euro rights issue began.
ITALY RAILWAYS (IPO-FERRO.MI)
The government aims to list the state railway in 2016 but the company first had to be put in shape for a listing and market conditions needed to be borne in mind, Treasury deputy minister Enrico Morando said.
Europe's biggest biotech firm said Health Canada had granted a notice of compliance for Uptravi, a new pulmonary arterial hypertension medicine.
> Asian shares, oil skid as global growth concerns dominate > Wall Street resumes 2016 slide as energy stocks tumble > Tokyo's Nikkei share average closes down 2.35 pct > Bond prices climb as oil, stocks drag > Dollar inches lower in cautious trade as Fed looms > Gold hits two-week high as equities retreat again > Copper firm on pressured dollar, but oil slide threatens gains > Oil extends slide to below $30 as oversupply worries return (Reporting by Danilo Masoni)