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European Shares Seen Flat to Lower; Data Eyed

European shares are expected to open flat to slightly lower on Tuesday as one-month high equity prices prompt investors to take profits ahead of the euro zone services PMI and retail sales data, which may offer some short-term direction to the market.

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

Britain's FTSE 100 was seen opening 1 point lower to 3 points higher, Germany's DAX was expected to fall 11 to 12 points, or down 0.2 percent, and France's CAC was seen down 10 points, or 0.3 percent lower.

London’s FTSE closed up 27.78 points on Monday to 6017.54, the DAX was up 23.52 points to 7442.96 and France’s CAC 40 was down slightly by 4.24 points to 4003.11.

Asian stocks were steady near one-month highs on Tuesday after five consecutive days of gains, while the US stock exchanges were closed on Monday for the Fourth of July holiday.

The euro hovered near one-month highs against the dollar on Tuesday and could attract more buying interest this week ahead of an expected interest rate hike by the European Central Bank.

Despite a slight setback for the single currency following news that credit rating agency Standard and Poor's would treat plans for a rollover of privately held Greek debt as a selective default, the euro managed to retain almost all of last week's 2.5 percent gain.

The euro briefly dipped below $1.4500 overnight in light volumes due to a US holiday, but then rebounded to $1.4540.

A swathe of European service sector PMI data for June is released on Tuesday, starting with Ireland at 7:00 London time, Spain at 8:15, France at 8:50 and German figures will be available from 8:55.

EU service PMI is out at 9:00, followed by retail trade figures for the European Union at 10:00 UK time.

In Paris, Bank of France governor Christian Noyer will speak at the annual Paris Europlace International Financial Forum.

In Germany, the ECB Economic Conference on emerging Europe 'From crisis to recovery: old and new challenges in emerging Europe' will get underway in Frankfurt.

The Constitutional Court in Berlin will hear two cases against the euro rescue package and the Greek bailout package. German Finance Minister Wolfgang Schaeuble will be in attendance.

UK Chancellor George Osborne will give to MPs on the Treasury Select Committee regarding the accountability of the Bank of England at 2:15 local time.

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Contact Europe: Economy

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