Europe Economy

Stocks to Open Lower Pressured by Greek Worries

Reuters and

Financial bookmakers expect to see the leading European benchmark indexes falling on Monday, resuming their seven-week slide, after euro zone finance ministers delayed a final decision on emergency loans to Greece.

Share Price chart
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Financial spreadbetters expect Britain's FTSE 100 to open around 24 points lower, or down 0.4 percent, Germany's DAX to open 28 points lower, or down 0.4 percent, and France's CAC 40 to open 28 points lower, or down 0.7 percent.

On Friday, shares racked up a seventh straight weekly loss on Friday – the longest such run in three and a half years.

London’s FTSE closed down 50.86 points for the week to 5714.94, while the DAX was up 94.15 points to 7164.05 and France’s CAC 40 was also up 18.65 points to 3823.74.

In the US stocks finished the week mixed, but the Dow and S&P ended a six-week losing streak after France and Germany promised to keep on funding the euro zone country.

In Asia, shares edged higher on Monday after falling to a three-month low last week, but caution prevailed as euro zone finance ministers announced early Monday that a decision on further aid for Greece will be delayed.

The euro held on to most of the gains made late last week, underpinned by optimism over a new agreement on Greek aid, but Sunday’s meeting of euro zone finance ministers meant the common currency remained vulnerable.

The euro last traded at $1.4257, well of last week’s trough around $1.4070.

Against the Swiss franc, the single currency was at 1.2127 off a record low reached last week.

The International Atomic Energy Agency (IAEA) International Ministerial Conference on Nuclear Safety will get underway in Vienna on Monday with delegates set to review the watchdog’s nuclear safety convention governing international standards.

Acting IMF head John Lipsky will announce the IMF’s view on the euro zone economy following Sunday's meeting in Luxembourg of euro zone finance ministers.

In France, the 49th International Paris Air Show opens and there will be a court hearing to decide when the corruption trial of former French president Jacques Chirac can resume on claims he created fictitious jobs to pay his political allies during his time at mayor of Paris.

Bundesbank president Jens Weidmann will speak about the current challenges for central banks in Frankfurt at 4.30 pm London time.

Germany’s central bank will release its monthly report for June at 11:00 London time.

Economic data out on Monday includes May PPI data from Germany at 7:00 London time, UK mortgage lending figures for May which will be available from 9:30 and the European Commission will release its first quarter labor cost index at 10:00.

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