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Europe Shares Seen Mixed After Tuesday's Rally

European shares were set to edge up on Wednesday, adding to gains in the previous session, and after a rally on Wall Street, though renewed worries about the US economy and caution ahead of employment data were expected to limit the upside.

Close-up of a pen on stock price chart
Close-up of a pen on stock price chart

Financial spreadbetters expected Britain's FTSE 100 to open as much as 5 points lower, or 0.1 percent, weighed down by ex-dividend factors; Germany's DAX to open up to 36 points higher, or as much as 0.5 percent, and France's CAC to open up to 13 points higher, or as much as 0.3 percent.

On Tuesday, the FTSEurofirst 300 index of leading European shares rose 0.8 percent to 1,142.18 points, though it lost 1.3 percent in the month of May, and has only gained 1.8 percent in 2011.

In the US, stocks ended higher amid renewed optimism over a solution for Greece, but sharp gains could not make up for a month of losses in May.

Goldman Sachs shares rose 1.49 percent after JP Morgan upgraded the investment bank to “overweight” citing overreaction to a report by a Senate panel and prospects for future business.

In Asia, stocks were mixed as Greek hopes lifted sentiment, but uncertainty over the strength of the US recovery still weighed.

The euro hit a three-week high against the dollar on Wednesday, supported by hopes for an agreement on fresh austerity and aid measures for Greece.

In early Asian trade, the single currency edged higher following a report in Greek newspaper Ekathirmerini that the Greek government could release its mid-term fiscal plan as early as Wednesday night or Thursday morning.

In Germany, European Central Bank president Jean Claude Trichet is expected to speak in Aachen on Wednesday at 1pm London time and Deutsche Bank CEO Josef Ackermann will speak at the Center for Financial Studies at 4pm.

In London, DP World ordinary shares are expected to be admitted and commence unconditional dealings on the London Stock Exchange.

A flurry of manufacturing data for will also be released, starting with Italy at 8:45 London time, followed by France at 8:50, Germany at 8:55, the euro zone at 9:00 and the UK at 9:30.

The Bank of England will also announce individual lending figures for April at 9:30.

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CAC 40
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JPM'K
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Contact Europe: Economy

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