European Stocks to Claw Back Losses; Debt Fears Persist
Associate Editor, CNBC
European shares are seen clawing back some of the losses they saw on Monday, but persisting concerns over the debt crisis in Europe could keep gains in check.
The FTSE 100 is seen opening the day higher by 19, the DAX is seen opening up by 45 and the CAChigher by 17 points.
Fears that the euro zone debt crisis could spread to core countries were heightened on Monday with the resignation of Dutch Prime Minister Mark Rutte after the collapse of austerity talks at the weekend. The political wrangling has left a vacuum with early elections now on the agenda.
In company news, Facebook reported its first quarter on quarter slide in revenue in at least two years as the social media giant gears up for its impending IPO.
European companies reporting on Tuesday include Sweden’s Nordea and SEB the UK's ARM Holdings and Associated British Foods .
Novartis recorded earnings of $1.27 per share in the first quarter, slightly below expectations of $1.32 per share in the quarter.
In the U.S. before the bell AT&T , Coachand Western Union report their first quarter earnings.
Tech behemoth Applewill be a stock to watch when it reports after the bell. The company has seen a sharp fall in its share price in the last couple of weeks.
Bond auctions which are likely to be followed closely on Tuesday include the Netherlands which tenders 1.5 to 2.5 billion euros ($1.9 to $3.2 billion) in July 2015 and January 2037-dated bonds at 9 am London time.
Spain, which has been in the eye of the debt crisis storm in recent weeks tenders up to 3 billion euros in short-term bills at 9:30 am London time.
The Leveson Inquiry takes a new twist Tuesday as James Murdoch, News Corp's deputy chief operating officer, who resigned as chairman of BSkyB earlier in the month gives evidence.
His father Rupert Murdoch is scheduled to give evidence on Wednesday.
Both have been at the center of the phone-hacking allegations in the British press which led to the closure of the News of the World last year.