PARIS, Sept 26 (Reuters) - European stocks were set to drop on Wednesday, tracking losses on Wall Street and in Asia on signs Spain's economic crisis is worsening. At 0626 GMT, futures for Euro STOXX 50, for Germany's DAX and for France's CAC were down 0.8-1.0 percent. In Madrid on Tuesday, protesters clashed with police as the government prepares a new round of unpopular austerity measures for the 2013 budget that will be announced on Thursday. The police said at least 15 people had been arrested and at least 6 injured. "With the demonstrations in Madrid on Tuesday, the euro zone crisis is intensifying again, and this had an immediate impact on U.S. indexes last night," FXCM analyst Nicolas Cheron said. Also fuelling negative sentiment, Philadelphia Fed President Charles Plosser said on Tuesday the Fed's latest monetary stimulus will not do much to boost economic growth or lower unemployment and raises the risk of longer-run inflation. "Complacency has suddenly vanished, with the VIX closing nearly 10 percent higher yesterday," FXCM's Cheron said. "This could be the start of a medium-term correction, so beware of rising volatility and don't forget stop-losses." The CBOE Volatility Index, or VIX, Wall Street's favorite barometer of investor sentiment, surged 9 percent on Tuesday, signalling a sharp rise in risk aversion. European stocks have risen sharply since early June - with the euro zone's blue chip Euro STOXX 50 index gaining 25 percent - boosted by bold action from the European Central Bank and the U.S. Federal Reserve to fight the euro zone debt crisis and revive growth. But the sharp four-month rally has lost steam over the past two weeks, halted by a string of grim macro data and Spain's reluctance to request a bailout that would ease tensions over the region's debt crisis. Spain's Prime Minister Mariano Rajoy said on Wednesday in an interview with the Wall Street Journal that he was ready to seek a new rescue package for his troubled country but only if its debt financing costs remain too high for too long. "Any revolt by (Spain's) people will make the transition of a country reliant upon bailouts very difficult and uncertain. The bigger the noise the bigger the safe haven trading plays," GFT strategist Andrew Taylor wrote in a note. The euro zone's blue chip Euro STOXX 50 index's next support level is at 2,556 points, representing the 23.6 percent Fibonacci retracement of the latest upward acceleration started in late August. Below that, the next support level will be 2,536 points, a low hit last week. Late on Tuesday, Germany, the Netherlands and Finland issued a joint declaration that appeared to unravel much of what was agreed at the last European summit in June, when EU leaders paved the way for the direct recapitalisation of problem banks. Italian Prime Minister Mario Monti said on Tuesday he would not run in elections due in spring, in an interview in which he said Italy no longer risked igniting a debt crisis in the euro zone. On Wednesday, the European Parliament will debate plans for a euro zone banking union, with member countries likely to raise concerns that the project designed to ease the currency bloc's crisis could sow divisions within the wider EU. -------------------------------------------------------------------------------- MARKET SNAPSHOT AT 0637 GMT LAST PCT CHG NET CHG S&P 500 1,441.59 -1.05 % -15.3 NIKKEI 8,906.70 -2.03 % -184.84 MSCI ASIA EX-JP 510.03 -0.87 % -4.49 EUR/USD 1.2872 -0.2 % -0.0026 USD/JPY 77.73 -0.08 % -0.0600 10-YR US TSY YLD 1.665 -- -0.01 10-YR BUND YLD 1.533 -- -0.03 SPOT GOLD $1,762.20 0.12 % $2.16 US CRUDE $90.67 -0.77 % -0.70 > GLOBAL MARKETS-Asian shares fall on wariness over Spain > US STOCKS-Caterpillar, Apple push Wall Street lower > Nikkei falls below key 9,000 level as slew of firms trade ex-div > FOREX-Euro steady, seen capped with Spain in focus > PRECIOUS-Gold steady on stimulus support; euro zone weighs > METALS-Copper drops on renewed euro zone concerns > Brent below $110 on economic woes; Iran tension limits losses COMPANY NEWS: BANCO SANTANDER Banco Santander priced a share offering for its Mexican unit at 31.25 pesos per share, in the middle of the range set by the company. Santander is set to raise more than $4 billion in the dual-country offering of its Mexican unit's shares, aimed at helping the bank shore up its operations in the ailing Spanish economy. EUROPEAN AUTO MAKERS Japanese automakers including Toyota Motor Corp and Nissan Motor Co. are cutting back production in China in the wake of anti-Japan protests that shuttered dealerships and darkened their sales outlook in the world's biggest car market. CGGVERITAS The firm said on Wednesday it is raising funds to finance the planned acquisition of the seismic data division of Dutch engineering company Fugro with a 414 million euro ($536.64 million) rights issue. CREDIT SUISSE Credit Suisse is preparing to dismantle its sub-scale asset management unit, integrating the business into its larger private bank and investment bank to clamp down on costs, two people within the Swiss bank told Reuters. For more, click on DEUTSCHE BANK Germany's biggest lender expects to see one-off costs in the third quarter linked to its job cuts, litigation expenses and the reduction of risk-weighted assets, Co-Chief Executive Anshu Jain told a financial conference. Separately, Deutsche Bank supervisory board chairman Paul Achleitner told Handelsblatt bonuses for management board members are limited to a single digit million amount. HANNOVER RE Hannover Re may plump up its dividend for 2012 to bolster its majority owner, insurer Talanx, which is readying an initial public offering, a German newspaper reported on Tuesday, citing Hannover's chief executive. TOTAL Energy companies should not drill for crude oil in Arctic waters because the environmental risks are too high, the oil company's Chief Executive Officer Christophe de Margerie said in the Financial Times. EADS U.S. aircraft giant Boeing is still getting U.S. subsidies despite Washington's claim to have stopped the handouts, the European Union said in the latest round of the world's biggest trade dispute. FIAT Chief Executive Sergio Marchionne confirmed on Tuesday plans to have Fiat's Italian factories make cars that will be sold outside Europe, particularly in the United States, as the company looks to counter a five-year market slump in Europe. IMPREGILO Italian construction company Impregilo and peer Salini approved a cooperation deal on Tuesday as a first step towards their merger that could bring extra contracts worth up to 6.4 billion euros ($8.30 billion) by 2017.