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Europe Shares to Dip on Economy Concerns

Reuters and CNBC.com
Tuesday, 7 Jun 2011 | 12:54 AM ET

European stocks were expected to open lower on Tuesday after slipping on Monday amid fresh concerns about the pace of the global economic recovery and expectations that the European Central Bank might signal a rate rise in July.

Share Price chart
Adam Gault | OJO Images | Getty Images
Share Price chart

The FTSE is expected to open 21 points lower on Monday, Germany’s DAX is predicted to be down by 34 points and the CAC 40 is called 17 points lower.

On Monday’s close only London’s FTSE closed slightly higher, up 0.14 percent at 5863.16 points.

In Germany, the DAX ended 0.34 percent down to 7084.57 points and the CAC 40 slipped 0.70 percent to close at 3,863.40.

Growth concerns and uncertainty over further assistance for Greece saw Asian stocks slip on Tuesday, while in the US stocks closed lower for a fourth consecutive trading session by Monday’s closing bell.

The euro climbed early in Asia on Tuesday after a slide following remarks by the Eurogroup chairman, Jean-Claude Juncker that the single currency was overvalued.

The euro last traded at $1.4589, having fallen as low as $1.4555, but it remained off Monday’s high of $1.4659.

In addition to Junker’s comments, a German finance ministry spokesman said on Monday that a second aid program for Greece was not certain.

Greek Prime Minister George Papandreou is expected to present plans for further austerity measures to his Socialist party members on Tuesday, before the plans reach the Greek parliament on Wednesday.

In Paris, the OECD and the French G20 presidency will co-host a meeting on nuclear energy issues as part of an international effort to learn from events at the Fukushima nuclear reactor plant in Japan.

Also in Paris on Tuesday, credit rating agency Fitch will hold its 2011 banking crisis, giving its point of view on the state of the global banking sector.

German chancellor Angela Merkel will be at the White House for an official visit, the first by a German chancellor to the US since Helmut Kohl in 1995.

In Brussels, the EU will present enhanced economic coordination plans to the 27 member states of the European Union, based on an assessment of the budgetary and financial situation in each country.

The Bank of Portugal will also release its mid-year financial stability reporton Tuesday.

Key economic releases include Swiss CPI for May at 8:15 London time, April retail trade figures for the European Union from 10:00 and data on German manufacturing orders for April, out at 11:00.

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Contact Europe: Economy

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