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European Shares Set to Fall on Egypt Worries

Reuters and CNBC.com
Monday, 31 Jan 2011 | 2:13 AM ET

European shares were set to fall on Monday as concerns grew the Egyptian anti-government protests could spark instability elsewhere in the Middle East, with stocks on Wall Street and in Asia also dropping.

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 on Friday on growth fears as protests in Egypt escalated, while a pick up in U.S. consumer spending failed to excite markets in the face of a weaker than expected overall GDP figure.

With inflation featuring ever higher on the list of policymakers' concerns, all eyes will be on a flash estimate for euro zone inflation on Monday.

Also on the agenda on Monday are retail turnover figures and UK house price data.

The European sovereign debt crisis and its consequences will take center stage once again this week.

Irish Prime Minister Brian Cowen will dissolve parliament on Tuesday and announce the date of a general election.

The election will mark the end of his tumultous time as premier during which he was criticized for mishandling a financial crisis that sent shockwaves across the euro zone and forced the former "Celtic Tiger" economy to seek a bailout.

Investors will also gear up for the European Central Bank's interest rate decision on Thursday as well as any ECB comments on inflation.

On Friday, European Union leaders meet in Brussels and are likely to discuss the continuing effects of the European sovereign debt crisis.

Contact Europe: Economy

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