European Shares Poised to Track Dow's Gains


European equities were set to rally on Tuesday, tracking sharp gains on Wall Street sparked by a raised buyout offer for troubled Bear Stearns that reassured investors about valuations in the battered financial services sector.

Financial bookmakers, or spread betters, in London expected Britain's FTSE 100 index to open between 89 and 95 points higher, or as much as 1.7 percent, the German DAX 122 to 145 points higher, or as much as 2.3 percent, and the French CAC 40 114 to 120 points higher, or as much as 2.6 percent.

U.S. stocks soared on Monday after JPMorgan Chase boosted its offer for Bear Stearns to $10 a share from $2. A surprising increase in sales of U.S. pre-owned homes last month also lifted optimism that the worst of the housing slump may have passed.