The open of the European market is expected to be mixed by spread betting firms following Monday’s highly volatile start to the trading week. Fears over Spain’s finances had seen its borrowing costs soar past 7.5 percent and its stock market trading lower by as much as 5.5 percent before rallying to close just 1 percent lower.
The FTSE 100 is expected to open 21 points higher with the DAX in Germany called 23 points lower following news that Moody’s, the credit rating agency has
Offsetting fears over the euro zone is
In Athens the Troika inspectors from the EU, ECBand IMFarrive for talks that will decide whether Greece gets access to much needed bailout funds. Tough rhetoric over the weekend in the German press and that warning from Moody’s of a possible exit will heighten investor fears that the new government in Athens will not be able to deliver on budget measures Prime Minister Antonis Samaras said had driven his country into a “
Following Spain and Italy’s decision to reinstate short selling bans in yesterday’s session as their stock markets sank Spain will today try to raise short term funds in the bond market. Following big jumps in borrowing costs for Spanish paperyesterday Madrid is expected to pay a high price for 3 and 6 month paper when it issues 3 billion euros of bonds later this morning.
There will be some stock news for investors to get their teeth into during today’s session. Overnight Texas Instruments posted lower profits and revenues. The US chip maker said customers where “increasingly cautious in placing new orders” sending its stock lower after hours.
Later this morning German software giant SAP reports and co-CEO Jim Hagemann Snabe will join CNBC’s "Squawk Box Europe" for a First on Interview at 07:45 CET.