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European Stocks Expected to Bounce After Selloff

Financial bookmakers expect to see Europe's top indexes rising on Wednesday, with resource-related shares finding support in rising metal and commodity prices.

Traders sit in front of their screens at the stock exchange in Frankfurt/Munich, western Germany.
Martin Oeser | AFP | Getty Images
Traders sit in front of their screens at the stock exchange in Frankfurt/Munich, western Germany.

European shares fell to a six-week closing low on Tuesday after concerns over Ireland's turmoil and the possibility of contagion to its regional peers intensified, and tensions in the Korean peninsula escalated.

The US condemned the attack but said it was too soon to act.

The Irish government will publish a four-year "Budgetary and Growth Plan"on Wednesday outlining austerity measures ahead of Budget Day on Dec. 7.

German Chancellor Angela Merkel said on Tuesday Ireland's crisis was different to Greece's but just as worrying and the eurowas in an "exceptionally serious" situation.

Yields jumped on Spain's issue of short-term Treasury bills compared to a tender a month ago, reflecting the impact of Ireland's debt crisis on other countries in the euro zone periphery that are seen most at risk.

Speculative traders could also turn their attention to Portugal on Wednesday amid heightened expectations that the country could be next in line for a bailout.

Protestors will take to the streets in Lisbon on Wednesday to protest against the government's austerity measures aimed at cutting the budget deficit.

Economic data due out on Wednesday includes Germany's Ifo index of business confidence. The release will provide an indication of how German companies feel about the business climate and what lies ahead. Movement in the business climate index could affect the euro.

Also on the agenda is the release of the second estimate of third-quarter GDP figures for the UK.

Britain's economy expanded by 0.8 percent between July and September, official data is likely to confirm on Wednesday, although new figures on expenditure may show household spending weakened slightly.

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