European Stocks to Fall as Debt Worries Linger

European markets are again set to open lower on Tuesday with spread betters in London expecting Germany's DAX to drop by over 60 points.

Europe's stocks will likely take their lead from a late sell-off on Wall Street and a mixed session in Asia amid fears over the impact of debt talks in the United States on growth.

Adding to the negative sentiment are talks in Brussels over how best to deal with the Greek debt crisis. Angela Merkel said she was against any debt restructuring before 2013 when the rules would allow private investors to shoulder some of the burden.

Others, like Eurogroup chair Jean-Claude Juncker said they where open to debt re-profiling, adding to the uncertainty over when a solution will be found.

Stocks closed lower on Monday, with euro zone debt-exposed banks among the hardest hit as finance ministers met to discuss the latest steps for Greece.

EU finance ministers join their euro zone counterparts for a meeting in Brussels on Tuesday.

On Monday, ministers agreed to back a bailout deal for Portugal.

Investors will also continue to watch further developments following the arrest of IMF chief Dominique Strauss-Kahn on charges of sexual assault.

The UK March house price index is due on Tuesday, along with UK April inflation figures. Also on the agenda is Germany's ZEW indicator of economic sentiment for May.