** Shares in Carrefour CARR.PA fall around 6.5% to the bottom of the European STOXX 600 .STOXX after JPMorgan put the stock on its negative catalyst watch ahead of the French retailer's H1 results

** The broker reiterates its "underweight" rating and cuts its PT by 10% to €9 per share ($10.35)

** JPM expects another earnings miss, in line with the company’s track record, even as recent strong share gains and investor positioning suggest markets are betting on a turnaround

** It sees muted y/y ROI growth and margin expansion in France off a very low base, with negative volumes weighing on margins in Brazil

** "The rest of Europe ain't great either," broker adds, highlighting Spain as the only bright spot for the company

** Shares on track for worst day since last June, trimming year-to-date gains to around 8% if losses hold

($1 = 0.8694 euros)