European stocks are expected to open sharply higher on Monday on hopes that the European Central Bank and U.S. Federal Reserve will this week deliver measures to boost growth and contain the euro zone debt crisis.
With growth slowing across most major markets, one well-known stock market bear is predicting big losses for stocks in the third quarter, despite the chance of further central bank action to help shore up confidence.
European stocks are expected to open lower on Wednesday amid concerns over Spain and Greece’s finances and following a rare earnings miss by Apple. With Spain’s borrowing costs soaring after an auction of short term debt on Tuesday an alarm signal was sounded when the cost of borrowing over 5 years rose above the cost of 10 year borrowing.
The open of the European market is expected to be mixed by spread betting firms following Monday’s highly volatile start to the trading week. Fears over Spain’s finances had seen its borrowing costs soar past 7.5 percent and its stock market trading lower by as much as 5.5 percent before rallying to close just 1 percent lower.
Consumer electronics giant Philips announced forecast beating profits Monday, indicating that CEO Frans van Houten’s turnaround plan is beginning to pay off despite difficult market conditions.
European stocks are expected to open sharply lower on Monday amid concerns over the ability of Spain’s regions to pay their debts. On Friday, Spanish stocks fell by nearly 6 percent on news that Valencia had requested aid from the Spanish government to help it meet debt repayments.