Europe Economy

European Stocks to Open Higher; Focus Shifts to Earnings

European markets were expected to open slightly higher Tuesday, rebounding from Monday's losing session as the concerns over last week's European bank stress tests are replaced by optimism over company earnings.

The FTSE is called 15 points higher the DAX 24 points higher and the CAC-40 is called up by 12 points.

Technology giant IBM reported earnings above analysts' expectations after Monday's US closing bell and raised its outlook, sending shares in the company higher. The numbers could help European technology stocks on Tuesday.

Ahead of the US open on Tuesday, investors will focus on earnings from Bank of America and Goldman Sachs as well as Coca Cola and Johnson and Johnson .

In Europe, Switzerland's Novartis reported second-quarter earnings which came in just below analyst forecasts.

European debt remains in focus on Tuesday when Greece will auction 1.25 billion euros ($1.76 billion) of 13-week T-bills, continuing its plan of monthly short-term debt sales. EU Ministers meet on Thursday to discuss Greece and the sovereign debt crisis.

In the UK the phone hacking scandal dominates the news with both Rupert and James Murdoch and Rebekah Brooks appearing before a parliamentary committee to answer questions about their knowledge and involvement in the phone hacking scandal.