Europe Shares Seen Lower on Weak US Jobs
Associate Editor, CNBC
European shares are expected to fall sharply when the market opens after a long Easter weekend as weaker jobs growth data from the U.S at the end of last week hurt investors’ confidence.
The FTSE 100 is expected to open down 45 points, Germany’s DAX is seen lower by 105 points and the CAC is seen down by 53 points.
China reported an unexpected trade surplus on Tuesday. Asian markets traded lower after the data, with export growth still remaining sluggish. Imports rose only 5.3 percent compared with expectiations for a 9.3 percent increase.
U.S Federal Reserve chairman Ben Bernanke said on Monday that banks need more capital to ensure the financial system remains stable referring to Basel III, which will force banks to up their capital buffers.
In company news, Facebook is to buy Instagram, the online photo-sharing application developer, for $1 billion as it prepares to go public later this year.
In other tech news, AOL shares soared after Microsoft announced it was purchasing a range of patents from the company for $1 billion.
The Bank of Japan will announce its policy rate decision later Tuesday. It is expected to keep rates steady and hold off on any further monetary easing measures.
The Institute of International Finance has warned the euro zone that it needs to build a greater firewall than the one it currently has, suggesting that the 940 billion euros bailout fund is only a first step. The IIF represents some of the largest global banks and financial institutions.