FTSE, DAX, CAC Seen Higher; Investors Cautious
Associate Editor, CNBC
European shares are seen opening slightly higher Tuesday as investors remain cautiously optimistic despite the risk of rising oil prices.
The FTSE 100 is seen opening up 13 points, the DAX higher by 10 points and the CAC 40 is seen higher by 16 points.
German Chancellor Angela Merkel won a crucial parliamentary vote supporting a second bailout for Greece, but missed out on a large majority as some lawmakers revolted against extra support for ailing countries.
Finland and the Netherlands will debate the Greek bailout in their respective parliaments.
The vote came shortly before Standard & Poor’s, the credit rating agency, cut Greece’s long-term credit rating to "selective default" after that nation announced a bond swap deal that should see it shave off around 100 billion euros ($134.4 billion) off its debt burden.
Speaking at the London School of Economics, European Central Bank governing-council member Ewald Nowotny dismissed talk about increasing the firewall available to euro zone countries. A G20 meeting over the weekend called for further funds from euro zone governments as a condition before additional financial support from the International Monetary Fund would be available.
Italy tenders 6 to 8 billion euros ($8 billion to $10.75 billion) in 5- and 10-year bonds in what is being seen as a crucial test of market confidence for the country following Greece’s second bailout.
In the US, Tuesday sees Republican presidential hopefuls Rick Santorum and Mitt Romney step up their campaigns to challenge President Barack Obama in November as the GOP primaries campaign heads to Michigan and Arizona.